FDI filing with RBI
When a business entity in India receives Foreign Direct Investment (FDI) and issues shares to a foreign investor, it must adhere to the RBI's FDI filing requirements. This involves submitting the Form FCGPR through the online Foreign Investment Reporting and Management System (FIRMS) portal.
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FDI filing with RBI
Foreign Direct Investment (FDI) filing refers to reporting the inflow of foreign investment in an Indian company to the Reserve Bank of India (RBI). This reporting is mandatory for Indian companies that receive foreign investments in equity shares, compulsorily convertible preference shares or debentures, and warrants or partly-paid shares. The reporting process involves submitting the Foreign Currency and General Permission Route (FCGPR) form and a Company Secretary (CS) certificate.
Purpose of FDI Reporting with RBI
FDI reporting with RBI aims to ensure compliance with the FDI policy and provide a transparent and efficient regulatory framework for foreign investments in India. This helps the government and the RBI monitor and regulate foreign investments and ensure compliance with the FDI policy and regulations.
Applicable Regulation on FDI filing with RBI
The regulations applicable to FDI filing with RBI are primarily governed by the Foreign Exchange Management Act, 1999 (FEMA) and its regulations.
FCGPR Form for FDI Filing
The FCGPR form is used to report the receipt of foreign investments in the form of equity shares, warrants, or partly-paid shares and compulsorily convertible preference shares or debentures. The FCGPR form must be filed electronically on the RBI's FIRMS portal within 30 days of the receipt of the FDI.
Due Date for Filing Form FCGPR
Form FCGPR must be filed within 30 days of the allotment of shares, CCPS or CCD.
Documents Required
The following documents are typically required:
- Copy of KYC report of the remitter
- Declaration by an authorized representative of the Indian Company
- CS Certificate stating compliance
- Valuation report (if required)
- FIPB approval copy (if required)
- Board Resolution for allotment and list of allottees
- Any other documents as requested by RBI or AD bank
Penalty for Non-Filing of Form FCGPR with RBI
Delayed reporting penalty example: 1% of the total investment amount (min INR 5,000, max INR 5 lakhs) per month for the first six months; increases thereafter. Always check RBI notifications for current penalty rules.
Process for Filing FCGPR
- Obtain AD (Authorized Dealer) Code from a bank.
- Register entity on FIRMS portal and create Entity Master.
- Register business users, prepare and sign the FCGPR form.
- Submit the form electronically within 30 days of receipt/allotment.
- Download acknowledgement and follow up with the AD bank.
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