Complete Guide to FC-GPR Filing for Foreign Investments in India

Foreign investments play a crucial role in the growth of Indian businesses, and regulatory compliance ensures transparency in these transactions. One such compliance requirement is the Foreign Currency-Gross Provisional Return (FC-GPR) filing. This blog provides a detailed overview of FC-GPR, its applicability, filing procedures, required documents, due dates, and consequences of non-compliance.

1. What is FC-GPR?

FC-GPR is a mandatory filing requirement for Indian companies that receive foreign direct investment (FDI) including indirect foreign investment (by issuing shares to foreign investors). The Reserve Bank of India (RBI) mandates this filing to track foreign investments and ensure compliance with Foreign Exchange Management Act (FEMA), 1999 regulations.

2. When is FC-GPR Applicable?

FC-GPR filing is applicable when:

• An Indian company issues capital instruments (equity shares, compulsorily convertible preference shares, or compulsorily convertible debentures) to a foreign investor.
• The investment is made through automatic or approval routes as per the Consolidated FDI Policy.
• The transaction involves foreign exchange remittance through normal banking channels or transferred from an NRE / FCNR account.
  

Foreign Direct Investment (FDI) in India can be made through two primary routes under the Consolidated FDI Policy:

1.  Automatic Route
   Under the Automatic Route, foreign investors do not need prior approval from the Reserve Bank of India (RBI) or the Government of India. This applies to sectors where 100% FDI is permitted without restrictions. Contact us to know more details
2. Approval Route (Government Route)
   For certain sectors, foreign investors must obtain prior approval from the Government of India before investing. The approval process is handled by the Foreign Investment Facilitation Portal (FIFP), which coordinates with relevant ministries. Sectors requiring approval include:

• • Defense
  • Telecommunications
  • Media & Broadcasting
  • Banking & Financial Services
  • Multi-brand Retail

Additionally, investments from countries sharing a land border with India (such as China, Pakistan, and Bangladesh) require mandatory government approval, regardless of the sector.  

3. Procedures to File FC-GPR

The filing process involves the following steps:

1. Entity Registration: The company must register as an Entity User on the FIRMS Portal of RBI.
2. Business User Registration: A business user account must be created to file the FC-GPR form.
3. Form Submission: Enter details such as investor information, shareholding pattern, remittance details, and valuation report.
4. Upload Required Documents: Attach necessary documents and submit the form. To know more about the required documents, contact us.
5. Approval by RBI: The Authorized Dealer (AD) Bank verifies the submission before forwarding it to RBI.

4. Due Date to File

The FC-GPR form must be filed within 30 days from the date of share allotment. Failure to meet this deadline can result in penalties.

5. Consequences of Not Filing

Non-compliance with FC-GPR filing can lead to:

• Monetary Penalties: A fine of INR 5000 or 1% of the total investment amount, up to INR 5 lakh or as prescribed by RBI from time to time.
• Higher Penalty for Delays: If the delay exceeds six months, the penalty doubles.
• Legal Consequences: The company may face scrutiny under FEMA regulations, affecting future foreign investments.

Conclusion

FC-GPR filing is a critical compliance requirement for Indian companies receiving foreign investments. Timely submission ensures regulatory adherence and smooth business operations. Companies must stay informed about the filing process, required documents, and deadlines to avoid penalties.