Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
The key steps
- Price the shares per FEMA guidelines, supported by a valuation
- Receive the money through normal banking channels (FIRC/KYC)
- Allot shares and file FC-GPR with the RBI
Timelines and penalties
FC-GPR is due within 30 days of allotment. Late or missed filing carries late-submission fees and penalties under FEMA. Confirm current forms and timelines.
The full sequence and the annual obligations
Taking foreign investment runs on a clear sequence, and missing a step is costly. Before the money comes in, confirm the sector route (most are 100% automatic; some need approval or carry caps) and fix the price at or above the FEMA floor, supported by a valuation. The investor remits funds through banking channels, and the bank issues a Foreign Inward Remittance Certificate and completes KYC. You allot the shares within the permitted period and report the allotment to the RBI on the FIRMS portal in Form FC-GPR within 30 days — late filing attracts a Late Submission Fee. After that, ongoing obligations apply: the annual FLA (Foreign Liabilities and Assets) return by 15 July, and FC-TRS reporting within 30 days if shares later transfer between a resident and the non-resident. Convertible instruments like CCPS or CCDs have their own pricing and reporting rules. Keeping the valuation, the FIRC, the board and allotment records, and the filed forms together makes both the round and any later due diligence smooth. The recurring message is that foreign investment is welcome and largely automatic, but the reporting is time-bound. Confirm the current forms and timelines, which the RBI updates.