To make the foreign investment easy and simple, RBI has mandated filing of forms for the same only through e-portal. The RBI vide Circular No. 40 dated 1st February, 2016; has made it mandatory to file forms ARF, FCGPR and FCTRS on the reporting of Foreign Direct Investment (FDI) only in online mode through e-Biz portal from 8^th February, 2016 onwards. FDI Compliance made easy through e-filing of forms.

The following forms need to be filed with RBI when FDI is received against issue / transfer of securities:

 

• Advance Remittance Form (ARF) – It is filed by the companies to report the FDI inflows to RBI;

Time-Limit: Within 30 days from the date of receipt of funds.

 

• FCGPR Form – Filed by a company to RBI for reporting of the issue of eligible instruments to the overseas investor against the above mentioned FDI inflow;

Time-Limit: a) Complete Inward Remittance Reporting within 30 days from the date of receiving the money.

1.     b) Shares to be allocated within 180 days from the date of receipt of money.
2. c) File FC-GPR within 30 days from the date of allocation of shares.

 

• FCTRS Form – It is submitted to RBI for transfer of securities between resident and person outside India.

Time-Limit: Within 60 days from the date of receipt of money.

 

 

All the reporting requirements were to be done in physical form prior to RBI’s circular. With this move, FDI Reporting and compliance for Indian Companies would be easier. Now, moving from post to post will come to an end. From 8^th February, 2016, submission of physical documents will no more be available.

For any assistance in FDI, visit taxmantra.com.

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