RBI Compliances

The Foreign Exchange Management Act (FEMA) acts as the guiding law to regulate the flow of funds flowing from foreign countries to India and vice versa. Services offered for Compliance under FEMA are FC- GPR, FC-TRS, ODI, etc.,

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Application for RBI Compounding Proposal

Foreign Currency- Gross Provisional Return (FC- GPR)
FC-GPR is applied when entity receives foreign investment, and against such investment, the entity allots shares to the foreign investors.
Foreign Currency Transfer (FC-TRS)
RBI has specified Form FCTRS for making reporting of Transfer of Capital Instruments between a person resident in India and a person resident outside India.
So, whenever there is a transfer of capital instruments between a resident India and a non-resident, then the Company needs to make the reporting of the same in Form FCTRS.
The Annual Return on Foreign Liabilities And Assets (FLA)
In FLA return, the company shall be reports its foreign investment or foreign remittance which is received by the company itself.
Overseas Direct Investment (Form ODI)
Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by way of contribution to the capital or subscription to the Memorandum of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchange, signifying a long-term interest in the foreign entity (JV or WOS).
Annual Performance Report (APR)
Annual Performance Report (APR) is a mandatory annual compliance specified under FEMA Act, 1999. Non-filing/delay in filing of the APR on or before the due date will be treated as a violation of FEMA and late submission fees (LSF) as per Regulation 11 of Overseas Investment Regulations shall apply.

How it Works

Documents Needed to Apply for RBI Compounding

Step 1

Received a memo from RBI

Step 2

All FIRC and FDI reports were submitted to the RBI.

Step 3

Filed with RBI & ROC: FCGPR & allotment

Frequently Asked Questions

The Filing Form FC-GPR is needed in following cases:
1. In case of incorporation, if the shareholder is a non-resident, this form needs to be filed as it is a mandatory RBI compliance for the issue of shares to a non-resident.
2. The FC-GPR form should be filed within 30 days of allotment of securities.

Form FCGPR needs to be filed within 30 days from the date of allotment.

Form FCTRS is required to be filed for reporting of Transfer of shares between a resident and a Non-Resident Person.

Form FCTRS needs to be filed within 60 days of transfer of capital instrument or receipt/remittance of funds, whichever is earlier.

An Indian Party is a company incorporated in India or a body created under an Act of Parliament or a partnership firm registered under the Indian Partnership Act 1932 or a Limited Liability Partnership (LLP) incorporated under the LLP Act, 2008 and any other entity in India as may be notified by the Reserve Bank. When more than one such company, body or entity makes investment in the foreign JV / WOS, such combination will also form an “Indian Party”.

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