Introduction
India has become a hotspot for foreign direct investment (FDI), especially in startups, tech, manufacturing, and financial services. When a company in India receives investment from a foreign entity or individual in exchange for equity shares, it must report this transaction to the Reserve Bank of India (RBI). This reporting is done through the FC-GPR form — a critical compliance requirement under FEMA (Foreign Exchange Management Act), 1999.
In this blog, we’ll simplify what FC-GPR is, when and how to file it, documents required, and common mistakes to avoid.
What is FC-GPR?
FC-GPR stands for Foreign Currency-Gross Provisional Return. It is a form filed by an Indian company to report FDI received against the issuance of shares or convertible debentures or preference shares to a foreign investor.
✅ FC-GPR is filed on the FIRMS portal (Foreign Investment Reporting and Management System) maintained by the RBI.
When is FC-GPR Required?
You must file FC-GPR when:
- Your Indian company receives foreign investment in equity shares, CCPS (compulsorily convertible preference shares), or CCD (compulsorily convertible debentures).
- Shares are allotted to the foreign investor.
⏳ Timeline: FC-GPR must be filed within 30 days from the date of allotment of securities.
Step-by-Step Process to File FC-GPR
1. Registration on the FIRMS Portal
- Register your entity and Authorised Dealer (AD) Bank.
- Appoint a business user who will access the portal.
2. Login and Create FC-GPR
- Navigate to the “Single Master Form” under FIRMS.
- Select the FC-GPR option and begin filling in investment details.
3. Fill Key Sections
- Basic company information
- Investment details (amount, nature of securities)
- Valuation details
- Remittance certificate details
4. Upload Required Documents
(See next section)
5. Submit to AD Bank
- The AD Bank verifies the form before it goes to RBI.
Documents Required for FC-GPR Filing
Document | Purpose |
Board Resolution | Approving share allotment |
Proof of money received | |
KYC from AD Bank | Identity of foreign investor |
Valuation Certificate | From a CA or registered valuer |
Declaration by Director | Regarding compliance |
Share Allotment Report | Details of securities allotted |
Key Regulatory Framework
- Governed by FEMA, 1999
- RBI Master Direction on Reporting under FDI Scheme
- Companies Act, 2013 (for share allotment compliance)
Penalty for Non-Compliance
Failure to file FC-GPR within 30 days may attract penalties under FEMA:
- Compounding proceedings
- Monetary fines
- Reputational risk
Tips to Ensure Smooth Filing
- Keep all documents ready before filing
- Don’t wait till the last day — start early
- Coordinate closely with your AD Bank
- Engage a qualified CA or compliance expert for valuations and technical support
Real-World Use Case
Let’s say a startup in Bangalore raises $500,000 from a US-based venture capital firm. After allotting equity shares, the company has 30 days to file FC-GPR through the FIRMS portal. Missing this deadline could result in hefty penalties and affect future rounds of funding.
How TaxVic Can Help
At TaxVic, we specialize in end-to-end FDI compliance — from startup registration, share allotment, to FC-GPR filings. Whether you are a foreign investor or an Indian entity receiving foreign capital, our team ensures timely and error-free reporting to RBI.
Conclusion
Filing FC-GPR is not just a regulatory formality — it’s a legal obligation. With increasing scrutiny from RBI and the ED (Enforcement Directorate), it’s vital for Indian businesses to treat FDI compliance seriously.
Stay compliant. Stay investor-ready.
FAQs
- Who is responsible for filing FC-GPR?
➡️ The Indian company receiving the FDI. - What happens if the investor sends money but shares are not allotted?
➡️ FC-GPR filing isn’t triggered unless shares are allotted. - Can FC-GPR be revised once filed?
➡️ Only if the AD Bank rejects it and asks for corrections.
4. Is valuation certificate mandatory?
➡️ Yes, in all cases except rights issue.
