When an Indian company receives foreign investment, it’s a big deal! But with great investment comes great responsibility—one of them being filing Form FCGPR (Foreign Currency-Gross Provisional Return). If you’ve ever wondered what it is, who needs to file it, and what happens if you miss the deadline, this article is for you!
What is FCGPR & Why Does It Matter?
Think of Form FCGPR as a ‘receipt’ you give to the Reserve Bank of India (RBI) when you issue shares to a foreign investor. It helps RBI track foreign investments into Indian companies, ensuring everything is done as per FEMA (Foreign Exchange Management Act).
Now, the catch is—you must file it within 30 days from the date of share allotment. Delay it, and you might have to pay a penalty!
Who Must File Form FCGPR?
If your Indian company receives foreign investment and issues equity instruments (like equity shares, compulsorily convertible debentures, or preference shares), congratulations—you’re required to file FCGPR!
This applies regardless of whether the investment came via the automatic route or through prior approval from RBI.
Who is NOT Required to File FCGPR?
Not everyone has to go through this process. Here’s who can skip it: ❌ Companies issuing shares to Indian residents only ❌ Transfer of shares between two foreign investors (this falls under FCTRS filing!) ❌ Transactions involving non-convertible instruments (like loans, bonds, or optionally convertible debentures) ❌ Investments by Foreign Portfolio Investors (FPIs) in stock exchanges ❌ Startups raising funds through convertible notes (different reporting applies!)
How to File Form FCGPR? (Step-by-Step Guide)
Filing isn’t as scary as it sounds. You need to do it online through the FIRMS (Foreign Investment Reporting and Management System) portal. Here’s the breakdown:
✅ Step 1: Register on FIRMS Portal
- Visit firms.rbi.org.in and sign up!
✅ Step 2: Complete Entity Master Form (EMF)
- This is like an ‘ID proof’ for your company in RBI’s records. You must submit this before filing FCGPR.
✅ Step 3: Fill the FCGPR Form
- Log into the FIRMS portal and enter details like:
- Amount of FDI received
- Date of remittance
- Investor details (country, shareholding, etc.)
✅ Step 4: Upload Required Documents
- FIRC (Foreign Inward Remittance Certificate)
- KYC of foreign investor (from the remitting bank)
- CS certificate confirming FEMA compliance
- Board resolution approving the allotment
- Valuation certificate from a SEBI-registered professional
✅ Step 5: Submit & Wait for RBI Approval
- Once submitted, RBI reviews the form. They may ask for clarifications, so keep an eye on your inbox!
What Happens If You Forget to File FCGPR?
Oops! If you miss the deadline, you could face penalties under FEMA. Here’s what that looks like:
- Delay up to 6 months → ₹7,500 + 0.05% of FDI amount (max ₹5,00,000)
- Beyond 6 months → Higher penalties + need for FEMA compounding
Bottom line: File it on time to avoid unnecessary headaches!
Can You File FCGPR Late?
Yes, but at a cost. If you delay, you’ll have to pay the Late Submission Fee (LSF) and, in extreme cases, go through the FEMA compounding process to regularize it.
What If You Didn’t File FCGPR for an Old Transaction?
If your company forgot to file FCGPR for a transaction done 5 years ago, you can still do it, but you’ll need to: 1️⃣ Write a letter to RBI explaining the delay 📄 2️⃣ Apply for compounding under FEMA ⚖️ 3️⃣ Pay the penalty 💸 4️⃣ Get RBI’s approval & finally submit FCGPR ✅
Final Takeaway
Filing FCGPR is essential for businesses receiving FDI in India. If done correctly and on time, it’s smooth sailing. Delay it, and you might end up with penalties or extra compliance hassles.
So, if you’ve got foreign investors coming in, don’t forget to file FCGPR within 30 days!