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Quick Guide

Foreign Direct Investment Compliance

This Quick Guide is meant for Indian companies receiving foreign direct investment.

Steps Particulars Who should do this

1 While remitting funds ensure the following: Remitting investor

a. Funds have to flow only from the investors bank
accounts
b. The purpose of remittance should be stated as
Towards Investment in Share Capital
c. Know Your Customer information to be transmitted
along with remittance (ask for the format from G&G)

2 Apply to the Bank for Foreign Inward Remittance Certificates Company receiving
(FIRC) indicating the receipt of remittance and the purpose of investment
remittance as Towards Investment in Share Capital.

Some bankers may insist for declaration as per their own

format. If so, comply.

3 Submit Report of Receipt of FDI to the Banker within 30 days Company receiving
of the receipt of remittance enclosing copy of FIRC. Obtain investment
acknowledgment of submission from bank.

4 Await communication from Reserve Bank of India, allotting

Unique Identification Number (UIN) for every remittance
received.

5 Allot shares for the remittance received within 180 days of Company receiving
receipt of remittance, by doing the following: investment
a. Obtain share valuation report from Chartered
Accountant
b. Increase Authorized Share Capital, if necessary, by
complying with the requirements under the Companies
Act.
c. Allot shares by complying with the requirements under
the Companies Act.
d. Obtain Certificate from practicing Company Secretary
for fulfillment of Companies Act compliances for FDI
 1002 Paigah Plaza, Basheerbagh, Hyderabad 500063 India Ph: +91-40-67018000 Fax: +91-40-23237318 email: info@gandhis.com
www.gandhis.com

Steps Particulars Who should do this

6 Report allotment of FDI to the banker by submitting Part A of Company receiving

Form FC-GPR within 30 days of allotment enclosing the investment
following :
1. Valuation Report obtained from Chartered Accountant
2. Company law compliance certificate obtained from
Company Secretary
3. Copies of FIRC

7 Submit Annual Return of Foreign Liabilities & Assets, in Part B Company receiving
of Form FC-GPR, with the Reserve Bank of India, External investment
Liabilities and Assets Statistics Division, Mumbai, before 15th
July of every year, also enclosing audited financials of the
company.

July 2012

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Information given here is collected or created to the best of our knowledge and ability with a view to give you general
guidance and overview about the subject in hand. It is not meant to be treated as professional guidance for your specific case
or situation. You should be using this only as first or preliminary information and take decisions about your issue or case only
with appropriate professional guidance.

The law, interpretation of the law, the regulations and such other things change frequently. Some of these changes may
impact the information contained here. All the information may not be, therefore, correct or current always. This is yet
another reason you must seek professional guidance before taking any action in your case.

We have put up the information here bona fide with a view to help you understand the issues. However, we offer no warranty
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