Make yourself FDI compliant with RBI
Any investment in any Indian firm made through an overseas route that is over 10% is considered a Foreign Direct Investment (FDI). Ruihong facilitates 印度的外國直接投資合規性 to ease out investment for you.
印度的外國直接投資合規性
Foreign Direct Investment (FDI) is an investment effort made by any foreign entity (Foreign Investors & Companies) in a co-existing firm or newly established firm in India, or vice versa. According to the international FDI regulatory body “Organisation for Economic Co-operation and Development (OECD),” any investment in any Indian firm made through an overseas route that over 10% is considered a Foreign Direct Investment (FDI).
For companies receiving FDI from abroad, adherence to FDI Policy, 2018 issued by the Department of Industrial Policy and Promotions (DIPP) is mandatory.
Professionals here working under Ruihong as FDI consultants provide you with handheld support overall all 印度的外國直接投資合規性.
Requirements for 印度的外國直接投資合規性
| Form Name | Description | Time Limit |
|---|---|---|
| Entity Master Form (EMF) | 1. Creation of EMF is the first step of compliance. 2. It is an entity specific account i.e. the Indian entity can create only one EMF account on FIRMS portal. 3. On successfully filing the EMF, the name of the Indian company is automatically included in RBI’s list of companies, that have received foreign investment. | There is no specified time limit for creation of EMF account. However, an Indian entity should comply with it immediately after receiving FIRC from AD Category I Bank. |
| Single Master Form (SMF) | 1. After successful creation of EMF account, the Indian entity can proceed towards creating SMF. 2. It is AD Bank specific account i.e. an Indian entity can create multiple SMF accounts to report different FDI transactions where such transactions are carried through different AD Banks. | There is no specified time limit for creation of SMF account. However, an Indian entity can create SMF account only after successful creation of EMF account. |
| Foreign Currency-Gross Provisional Return (FC-GPR) | 1. An Indian company issuing equity instruments to a person resident outside India has to file FCGPR Form. 2. Equity instruments must be issued within 60 days of receipt of inward remittance. 3. Only after successful registration on SMF portal, the Indian entity can proceed towards filing FC-GPR. | Within 30 days from the date of issuance of the equity instruments. |
| Foreign Currency-Transfer of Shares (FC-TRS) | 1. This form is required to be filed to RBI, when the shares of an Indian company are transferred by a non-resident shareholder to an Indian resident or vice versa. | Within 60 days from the date of remittance of the consideration. |
| LLP(I) Form | 1. Limited Liability Partnership (LLP) receiving the amount of consideration for the capital contribution should file LLP(I) Form. | Within 30 days from the date of receipt of the amount of consideration. |
| LLP(II) Form | 1. Resident transferor/transferee, as the case may be, should file LLP(II) Form for transfer of capital contribution, from a resident to a non-resident (or vice-versa). | Within 60 days of the receipt of the amount of consideration. |
| Form Downstream Investment (Form DI) | 1. An Indian entity or an investment Vehicle making downstream investment in another Indian entity which is considered as indirect foreign investment for the investee Indian entity should file DI Form | Within 30 days from the date of allotment of equity instruments. |
| Annual Return on Foreign Liabilities and Assets (FLA) | 1. The FLA form records the foreign assets and liabilities of the Indian company, as at the end of a financial year. Every Indian company that has received foreign direct investment or has made an overseas direct investment, is required to report its foreign assets and liabilities in this Form FLA | With the RBI on or before the 15th day of July of each year. |
| ESOP Form | 1. An Indian company issuing employees’ stock option to persons resident outside India who are its employees/directors or employees/directors of its holding company/joint venture/wholly owned overseas subsidiary/subsidiaries should file ESOP Form. | Within 30 days from the date of issuance of employees’ stock option. |
| DRR Form | 1. The domestic custodian issuing/transferring the depository receipts, in accordance with the Depository Receipt Scheme, 2014 should report in DRR Form. | Within 30 days of issuance/transfer of depository receipts. |
| INVI Form | 1. An Investment vehicle which has issued its units to a person resident outside India should file INVI Form. | Within 30 days from the date of issuance of units. |
FDI Compliance Timeline
