Streamlined RBI COMPLIANCE FOR FOREIGN INVESTMENT · Foreign Investment & Exchange

Streamlined RBI COMPLIANCE FOR FOREIGN INVESTMENT · Foreign Investment & Exchange

  • 💬 TAGLINE

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Here's How It Works

Step 1

Consultation Requirement

Our team reaches out to understand your precise requirements.

Step 2

Drafting Review

We prepare all necessary paperwork specific to your legal needs.

Step 3

Filing

Filing and rigorous follow-up with the respective authorities.

What Our Clients Say

“Lawxygen provides top-tier support. Registration timelines were strictly followed with full transparency.”

Rahul Verma

Rahul Verma

Director, TechNexus

Here's What You'll Need

💬 TAGLINE

  • Document Name
  • Notes / Format
  • Document Name
  • Notes / Format
  • Certificate of Incorporation & MOA/AOA
  • Company registration documents · PDF
  • Board Resolution for Allotment of Shares
  • Minutes/resolution of the board meeting at which shares were allotted to the foreign investor · PDF
  • Share Allotment Letter and Share Certificates
  • Issued to the foreign investor confirming allotment details · PDF
  • Foreign Inward Remittance Certificate (FIRC)
  • Bank certificate confirming receipt of foreign funds - issued by the receiving bank · PDF
  • KYC of Foreign Investor
  • PAN, passport, and address proof of the foreign investor entity or individual
  • Valuation Certificate
  • SEBI-registered merchant banker's / CA valuation certificate at the time of allotment - for FC-GPR

Why Should I Use Lawxygen for Registering a Private Company Online in India?

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Overview - rbi compliance for foreign investment foreign investment exchange Registration

What is it?

RBI Compliance for Foreign Investment covers the mandatory reporting and regulatory filings required under FEMA (Foreign Exchange Management Act, 1999) when an Indian company receives Foreign Direct Investment (FDI) - through equity issuance, CCPS, or convertible notes. Key obligations include: FC-GPR filing (reporting FDI to RBI within 30 days of allotment), FC-TRS (reporting transfer of shares between resident and non-resident), and FLAIR (Foreign Liabilities and Assets Annual Return).

FDI Policy framework

India's FDI Policy specifies which sectors allow 100% FDI under the automatic route (no RBI or government approval needed), which require government approval, and which are prohibited. Compliance with sector caps and entry conditions is mandatory.

Key reporting obligations

FC-GPR (Foreign Currency – Gross Provisional Return): Within 30 days of allotting shares to a foreign investor. Annual Return on Foreign Liabilities and Assets (FLA Return): Filed with RBI by July 15 each year by all Indian companies with FDI or ODI. FC-TRS: Within 60 days of transfer of shares between a resident and non-resident.

Consequences of non-filing

Under FEMA, non-filing of FC-GPR within 30 days results in a Late Submission Fee. Continued non-compliance is treated as a FEMA violation - carrying penalties up to 3 times the amount involved or ₹2 lakh, whichever is higher, plus criminal prosecution.

Benefits - Benefits of Company Registration Online Using Lawxygen

Who Usually Requires This?

The RBI COMPLIANCE FOR FOREIGN INVESTMENT · Foreign Investment & Exchange solution matches perfectly with these profiles:

  • Profile
  • Why It Applies
  • Profile
  • Why It Applies
  • Indian companies receiving FDI from foreign investors
  • Any Indian private limited company, LLP, or startup receiving equity investment from a foreign entity or foreign national must file FC-GPR with RBI within 30 days of share allotment - no exceptions.
  • Startups that have raised seed or Series A from foreign VCs
  • Foreign VC investments - from Singapore, US, Cayman, or Mauritius-based funds - are FDI. Every round of such investment requires FC-GPR filing, FLA return, and valuation certificate compliance.
  • Companies with NRI shareholders
  • Share transfers to or from NRI shareholders are regulated transactions under FEMA requiring FC-TRS filing within 60 days of the transfer price being agreed.
  • Companies with ECB (External Commercial Borrowing)
  • Indian companies that have raised loans from foreign lenders (ECB) must file Loan Registration Numbers with RBI and monthly ECB-2 returns - a separate but related FEMA compliance obligation.
  • Companies filing FLA Returns
  • All Indian companies with prior FDI or ODI on their books must file the Annual FLA Return by July 15 every year - even if no new investment was received in that year.
  • ✅ WHY DO YOU NEED THIS
  • Key Benefit
  • Explanation
  • Key Benefit
  • Explanation
  • FC-GPR Filing is Mandatory Within 30 Days
  • Every rupee of FDI received without subsequent FC-GPR filing is technically an illegal foreign contribution under FEMA. The 30-day deadline is non-negotiable - late filing triggers Late Submission Fees and FEMA scrutiny.
  • Protects Investors from FEMA Liability
  • Foreign investors are co-liable under FEMA for unreported transactions. Indian company non-filing exposes foreign investors to FEMA notices - damaging investor relationships and future funding rounds.
  • Required for Future Fundraising Due Diligence
  • Series A, B, and later-stage investors and acquirers conduct detailed FEMA compliance due diligence. Gaps in FC-GPR filings or FLA returns are deal-breakers that delay or kill transactions.
  • Annual FLA Return is Mandatory for All FDI Companies
  • All companies with FDI on their books - even if years old - must file the FLA Return annually by July 15. Non-filing is a FEMA violation and accumulates year after year.
  • PROCESS
  • Step Name
  • What Happens
  • Timeline
  • Step 1
  • FDI Compliance Audit
  • We review your company's cap table, past investment history, and existing FEMA filings to identify any compliance gaps, unfiled FC-GPRs, or missed FLA Returns.
  • Days 1–3
  • Step 2
  • Valuation Certificate Procurement
  • FDI at a specified price requires a SEBI-registered merchant banker's or chartered accountant's valuation certificate as a prerequisite for FC-GPR filing.
  • Days 1–7
  • Step 3
  • FC-TRS Filing
  • We prepare and file the required reporting forms on the RBI's FIRMS (Foreign Investment Reporting and Management System) portal within the prescribed timelines.
  • Days 3–10
  • Step 4
  • FLA Return & Ongoing Compliance
  • We file the Annual FLA Return by July 15 each year and maintain a complete FEMA compliance calendar - tracking all future reporting obligations as your company raises more capital.
  • Annual

How It Works

Execution is straightforward. Hand over the details and relax.

Consultation Request

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Data Preparation

Our agents format the forms via robust checks.

Execution

Final approvals fetched from the regulating authorities.

Expected Additional Levies

  • Filing Fees to Government
  • E-Stamp Duties according to state norms
  • Processing Levies based on capital limits

Core Advantages to Remember

Avoid Penalties

Better Market Position

Standardized Documentation

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