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RBI Compliance Simplified with Expert Support

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Navigating RBI compliance for foreign investments can be complex. Our team ensures timely filings for forms like FC-GPR, FC-TRS, and FLA Returns, keeping your business aligned with the latest regulations.

  • Comprehensive Compliance Solutions

  • Accurate Reporting & Filings

  • Foreign Investment & FDI Support

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Foreign investment facilitation and RBI Compliances

Foreign direct investment is one of the major monetary source for economic development in India.  Foreign companies invest in India with a view to take advantage of cheaper wages and changing business environment of India. The foreign capital keeps flowing to the Indian economy and it’s contributing towards the economic development. The Government has taken so many favourable policies in the recent years towards foreign investment in various industries by relaxing the foreign investment policies and regimes.  As a part of bringing foreign investment to India, the entity should adhere to the RBI guidelines. The important filings which are applicable at the time of bringing foreign capital are as follows:-

Key Services We Offer

1. Form FC-GPR (Foreign Currency – General Permission Route)

When a company receives foreign investment and against such investment, the company allots shares to such foreign investor, then it is the duty of company to file details of such allotment of shares with RBI in Form FC-GPR within 30 days of such allotment.​

Before reporting the transaction, applicant needs to obtain following:

  1. Declaration by the Non-resident Investor.

  2. KYC Form in respect of Non-resident Investor.

  3. Copy of FIRC.

  4. Valuation Report by a Chartered Accountant or SEBI registered Merchant Banker.

  5. Consent Letter duly signed by the seller and buyer or their duly appointed agent and in the latter case the Power of Attorney Document.

  6. The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India.

  7. Declaration from the buyer to the effect that he is eligible to acquire shares / compulsorily and mandatorily convertible preference shares / debentures under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with.

2. Form FC-TRS ((Foreign Currency – Transfer of Shares)

Whenever any transfer of shares takes place between a resident and a non-resident, the resident individual or the entity has to report the transaction to RBI by filing of Form FC-TRS. The reporting of Form FC-TRS should be done within a period of 60 (Sixty) days from the date of receiving the money.

Before reporting the transaction, applicant needs to obtain following:

  1. Declaration by the Non-resident Investor.

  2. KYC Form in respect of Non-resident Investor.

  3. Copy of FIRC.

  4. Valuation Report by a Chartered Accountant or SEBI registered Merchant Banker.

  5. Consent Letter duly signed by the seller and buyer or their duly appointed agent and in the latter case the Power of Attorney Document.

  6. The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India.

  7. Declaration from the buyer to the effect that he is eligible to acquire shares / compulsorily and mandatorily convertible preference shares / debentures under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with.

3. FLA (Foreign Liabilities and Assets) Return

The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets every year by July 15.

  1. Non-filing of the return before due date will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA.

  2. If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is also required to submit the FLA Return every year by July 15.

  3. The FLA Return has to be submitted in excel based format, which has inbuilt checks and validations, any other attachment should not be forwarded along with the FLA return.

  4. After filling in the requisite details, the Company can file the FLA Return by e-mailing the same to the RBI at fla@rbi.org.in from an official e-mail address of any authorized person.

  5. On submission of the FLA return, an acknowledgement will be forwarded to the E-mail address of the authorised person.

Form FC-GPR (Foreign Currency – General Permission Route)

When a company receives foreign investment and against such investment, the company allots shares to such foreign investor, then it is the duty of company to file details of such allotment of shares with RBI in Form FC-GPR within 30 days of such allotment.

Before reporting the transaction, applicant needs to obtain following:

  1. Declaration by the Non-resident Investor.

  2. KYC Form in respect of Non-resident Investor.

  3. Copy of FIRC.

  4. Valuation Report by a Chartered Accountant or SEBI registered Merchant Banker.

  5. Consent Letter duly signed by the seller and buyer or their duly appointed agent and in the latter case the Power of Attorney Document.

  6. The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India.

  7. Declaration from the buyer to the effect that he is eligible to acquire shares / compulsorily and mandatorily convertible preference shares / debentures under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with.

Form FC-TRS ((Foreign Currency – Transfer of Shares)

Whenever any transfer of shares takes place between a resident and a non-resident, the resident individual or the entity has to report the transaction to RBI by filing of Form FC-TRS. The reporting of Form FC-TRS should be done within a period of 60 (Sixty) days from the date of receiving the money.

Before reporting the transaction, applicant needs to obtain following:

  1. Declaration by the Non-resident Investor.

  2. KYC Form in respect of Non-resident Investor.

  3. Copy of FIRC.

  4. Valuation Report by a Chartered Accountant or SEBI registered Merchant Banker.

  5. Consent Letter duly signed by the seller and buyer or their duly appointed agent and in the latter case the Power of Attorney Document.

  6. The shareholding pattern of the investee company after the acquisition of shares by a person resident outside India.

  7. Declaration from the buyer to the effect that he is eligible to acquire shares / compulsorily and mandatorily convertible preference shares / debentures under FDI policy and the existing sectoral limits and Pricing Guidelines have been complied with.

FLA (Foreign Liabilities and Assets) Return

The annual return on Foreign Liabilities and Assets (FLA) is required to be submitted directly by all the Indian companies which have received FDI (foreign direct investment) and/or made FDI abroad (i.e. overseas investment) in the previous year(s) including the current year i.e. who holds foreign Assets or Liabilities in their Balance Sheets every year by July 15.

  • Non-filing of the return before due date will be treated as a violation of FEMA and penalty clause may be invoked for violation of FEMA.

  • If the company has not ‘received any fresh FDI and/or ODI (overseas direct investment)’ in the latest year but the company has outstanding FDI and/or ODI, then that company is also required to submit the FLA Return every year by July 15.

  • The FLA Return has to be submitted in excel based format, which has inbuilt checks and validations, any other attachment should not be forwarded along with the FLA return.

  • After filling in the requisite details, the Company can file the FLA Return by e-mailing the same to the RBI at fla@rbi.org.in from an official e-mail address of any authorized person.

  • On submission of the FLA return, an acknowledgement will be forwarded to the E-mail address of the authorised person.​

Why Choose Targolegal for RBI Compliance?

  • Expertise in RBI Regulations : Stay assured with our deep understanding of RBI rules and regulations for foreign investments.

  • Accurate & Timely Filings : We ensure the correct and timely filing of all necessary forms like FC-GPR, FC-TRS, and FLA returns.

  • Minimized Compliance Risk : Our proactive approach reduces the risk of penalties and non-compliance.

  • Tailored Solutions for Your Business : Customized services to suit your specific business needs, ensuring smooth compliance processes.

  • Focus on Growth : Let us handle your RBI compliance while you concentrate on scaling your business.

Overview

Importance of Registration

Registration Procedure

Documents Required

GST Registration

GST registration is a process by which a taxpayer gets themselves registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the central government after the taxpayers obtain registration. 
Please note – If you are operating from more than one state, then you will have to take separate  GST registrations for each state you are operating from.

Who is liable to get GST registration ?

All the businesses supplying goods, whose turnover exceeds INR 40 lakh in a financial year are required to register as a normal taxable person. However, the threshold limit is INR 10 lakh if you have a business in the north-eastern states, J&K, Himachal Pradesh, and Uttarakhand.

The turnover limit is INR 20 lakh, and in the case of special category states, INR 10 lakh, for the service providers.

Below,  is the list of certain businesses for which GST registration is mandatory irrespective of their turnover:

  • Casual taxable person / Input Service Distributor (ISD)

  • Non-resident taxable person

  • Inter-state supplier of goods and services

  • Supplier of goods through an e-commerce portal

  • Any service provider

  • Liable to pay tax under the reverse charge mechanism

  • TDS/TCS deductor

  • Online data access or retrieval service provider

​Goods and Service Tax is a tax levied on supply of goods and services right from the point of manufacture to the point of final consumption by the user. GST is a simplified indirect tax structure, wherein tax paid on goods/services procured by one person at one stage can be availed as credit while passing on the goods/services to the next stage, until they reach the final consumer who bears incidence of tax.


In the GST regime, businesses whose turnover from sale of goods exceeds Rs. 40 lakhs (Rs 20 lakhs for NE and hill states) or turnover from providing services exceeds Rs 20 lakhs , are required to register as a normal taxable person. For certain  other businesses, registration under GST is mandatory irrespective of turnover, like those paying tax under the reverse charge mechanism, supply to SEZ, Exports etc.

Overview

Importance of Registration

Registration Procedure

Documents Required

Important facts about GST registration

  • Any business that has a turnover of over 40 lakh INR (20 lakh for service sector) is required to register for GST.

  • If you are a supplier of goods to more than one state, you are required to register for GST in all the states you supply goods.

  • There is no registration fee for GST.

  • Failing to file for GST will result in a fine of 10,00 INR or 10% of the due amount.

Advantages of GST registration

  • Legal recognition of a business

  • Uniform accounting of taxes

  • Businesses will be eligible to avail of several benefits under the GST regime

  • Legal authorisation of collecting tax from sales made

Overview

Importance of Registration

Registration Procedure

Documents Required

GST Registration Process Are As Follows:

  • Information / Documents Collection

We undertake to  collect the requisite information and documents for preparation of the GST Application for your business.

​

  •  Prepare an  online Application for submission

We undertake to prepare your GST Application based on documents and information given to us and file the same with GSTIN.

​

  • Registration Approval

The acknowledgement of Registration will reach you with 3-6 working days.​

General Documents to be furnished

  • Pan card copy of all directors/partners/proprietor

  • Company pan card copy of pvt ltd / llp / partnership firm

  • Rental agreement and electricity bill

  • Company bank statement or cancelled cheque

  • Address proof copy of all directors/partners/proprietor

  • Photo copy of all directors/partners/proprietor

Additional Documents Required

GST Registration for Private Limited Company

  • MoA and AoA

  • Certificate of incorporation

  • DSC

For LLP

  • LLP agreement

  • Certificate of incorporation

  • DSC

For Partnership

  • Partnership registration certificate

  • Partnership deed

  • DSC

Overview

Importance of Registration

Registration Procedure

Documents Required

Documents Required

Below is  the list of documents that you will need for registering your business under GST.

  • Permanent Account Number (PAN) of the applicant

  • Copy of the Aadhaar card

  • Proof of business registration or incorporation certificate

  • Identity and address proof of promoters/directors with a photograph

  • Bank account statement/cancelled cheque

  • Authorisation letter/board resolution for authorised signatory

  • Digital signature

FAQ

What are RBI compliance requirements for foreign investments?

RBI mandates the filing of specific forms like FC-GPR, FC-TRS, and FLA returns for foreign investments to ensure adherence to regulations.

What are the key compliance requirements for businesses in SEZs?

Key forms include FC-GPR for reporting new foreign investments, FC-TRS for transfer of shares, and FLA return for annual reporting of foreign liabilities.

What is the deadline for submitting RBI compliance forms?

The deadlines vary by form, but typically, FC-GPR must be filed within 30 days, and FLA returns are due by July 15 each year.

What happens if I miss an RBI filing deadline?

Delays can lead to penalties and non-compliance issues, affecting future transactions and investments.

What is FC-GPR, and when should it be filed?

FC-GPR is a form for reporting foreign direct investments (FDI). It must be filed within 30 days of receiving the investment.

How do I file FC-TRS for transfer of shares?

FC-TRS should be filed with RBI when shares are transferred from a foreign investor to another party, and it must be done within 60 days of the transaction.

What is the FLA return, and who needs to submit it?

The FLA return is an annual report filed by Indian companies that have foreign investments, detailing foreign liabilities and assets. All entities with foreign investment must file this return.

What penalties can be imposed for non-compliance with RBI regulations?

Non-compliance may lead to fines, penalties, and restrictions on future foreign investment or business transactions.

Do foreign investors need to register with RBI?

Foreign investors do not need separate registration, but their investments must be reported through the appropriate forms.

Can RBI compliance be outsourced to Targolegal?

SEZ units must comply with labor laws, including employee welfare and working conditions. Environmental regulations also apply, ensuring that businesses maintain sustainable operations within the SEZ framework. Regular inspections and audits may be conducted to ensure adherence.

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