Inward Remittance & Obtaining FIRC:
1. Receipt of Foreign Currency in
Company’s Bank account (in USD) from the Overseas investors (from their respective
account)
2. Upon receipt of inward
remittance instruction from Bank, kindly inform the Bank that the purpose of
the inward remittance as “Towards Share Capital”
3. Request Company’s bank for
issue of FIRC (Foreign Inward Remittance Certificate) for the inward
remittance. Please check the purpose stated in the FIRC as “Towards Share
Capital”.
4. Incase of debit from FCNR / NRE
/ NRO accounts, request the bank for issue of letter certifying the debit to
FCNR / NRE / NRO account in place of FIRC.
Know Your Customer (KYC) process:
1. Request the investors
to obtain KYC from their bankers in the attached format and send it to India
(Preferably, the KYC can be transmitted by TT to the Company’s bank from the
overseas investors bank)
2.
Based on this overseas bank KYC, the Company’s bank will issue KYC for the
overseas investor. (Refer Annex 7 of Master Circular on Foreign
Investment in India 2013 for Format of KYC)
Reporting of Inward Remittance to RBI :
1. Within 30 days from
the receipt of Inward remittance, The Company has to inform RBI through
Company’s Bank (AD Category I Bank) by submitting Annex 6 along with copy of
KYC & FIRC / Debit Certificate. (Refer Annex 7 of Master Circular on
Foreign Investment in India 2013 for Format of Reporting to RBI)
2. The Company’s banker
(AD Category I bank) will certify Annex 6 after due verification and forward it
to RBI
3. Upon receipt of
intimation in Annex 6, RBI will allot and communicate the Unique Identification
Number (UIN) for each such inward remittance or FCNR / NRE / NRO account debit.
Note : Incase of multiple inward remittances or multiple debits,
reporting for allotment of UIN to be done individually for each inward
remittance in Annex 6
Allotment of Shares & filing of FC-GPR :
1. Within 180 days from the receipt of the money
from overseas or debit from FCNR / NRE/ NRO account, the Company has to allot
shares to the overseas investors (Share price should be more than the price as
arrived under Discounted Cash Flow method)
2. If any excess fund remains after allotment, the
unallotted sum should be remitted back to the overseas investor within 180 days
from the date of receipt.
3. Prepare Form FC-GPR (Refer Annex 8 of
Master Circular on Foreign Investment in India 2013 for Format of FC-GPR as amended
from time to time)
4. Get a SEBI registered Merchant Banker /
Chartered Accountant certificate for the share valuation (indicating the manner
of arriving at the price of the shares issued to the persons resident outside
India)
5. Get a Company Secretary certificate for the
compliance in the format specified in the Form FC-GPR
6. File Form FC-GPR with RBI through Company’s Bank
(AD Category I Bank) within 30 days from the date of allotment.
7. Recommended attachments to Form FC-GPR
a. SEBI registered Merchant
Banker / Chartered Accountant certificate
b. Company Secretary
certificate
c. UIN copy of all inward
remittances for which shares are allotted. If UIN is applied for and yet to be
received from RBI, attach copy of the UIN application filed with RBI through AD
Category I bank
d. Copy of FIRC’s received
for all inward remittances for which shares are allotted
e. Copy of Form 2 filed with
ROC as a proof of allotment
f. The Company’s banker (AD
Category I bank) will certify Form FC-GPR after due verification and forward it
to RBI
8. RBI after due verification of FC-GPR will allot
a FC-GPR registration number and communicate to the Company.
This FC-GPR registration number is final approval of RBI for the
Foreign investment. For any future repatriation of share sale proceeds, the
FC-GPR registration number to be quoted.
File Annual return on Foreign Liabilities and Assets (FLA) – Required to be submitted by all the India resident companies
which have received FDI and/ or made overseas investment in any of the previous
year(s), including current year by July 15 every year.
