Fdi from nri in indian private limited company

On Receipt of Remittance in Bank towards Share Capital:

Within 30 days of receipt of foreign shareholder remittance into bank account, the Indian company is required to report to the RBI (through authorized dealer bank), an intimation wrt remittance received. The intimation shall contain the following details:

• Name and address of the foreign investor/s;
• Date of receipt of funds and the Rupee equivalent;
• Name and address of the authorised dealer through whom the funds have been received;
• Details of the Government approval, if any; and
• KYC report on the non-resident investor from the overseas bank remitting the amount of consideration.
• Foreign Inward Remittance Certificate

On receipt of intimation, RBI allots a Unique Identification Number, which is to be used in all further correspondences with RBI. The importance of remittance receipt date is that Indian company has to issue shares within 180 days of receipt of remittance.

 Upon Issue of Shares to Non-resident Investors:

• Within 30 days from the date of issue of shares, a report in Form FC-GPR- PART A has to be filed with RBI (through authorized dealer). Form shall be filed along with following documents:
• A certificate from the Company Secretary of the Indian Company accepting investment from persons resident outside India certifying that
  • the company has complied with the procedure for issue of shares as laid down under the FDI scheme as indicated in the Notification No. FEMA 20/2000-RB dated 3rd May 2000, as amended from time to time.
  • the investment is within the sectoral cap / statutory ceiling permissible under the Automatic Route of the Reserve Bank and it fulfills all the conditions laid down for investments under the Automatic Route.
• Certificate from Statutory Auditors/ SEBI registered Category - I Merchant Banker /Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.
• Board of director resolution for allotment of shares.
• Copy of Memorandum of Association & Article of Association
• FIRC copy
• Copy of intimation to RBI

Annual Return to RBI

Indian company is required to file an annual return to RBI.

Hi

In addition to the suggestion of geet you must read the Master Circulat issued on Foreign direct Investment by RBI on time to time.

Regards

Ajay Mishra

To Jeets: regarding "Annual Return to RBI Indian company is required to file an annual return to RBI."

Could you please point me out where exactly to find that requierement in the RBI regulations. I read the RBI/2011-12/15
Master Circular No. 15/2011-12 July 1, 2011 thouroughly but could not find that requierement in it..so I very much doubt that requierement to file anual returen to the RBI beside that it is necessary to file it annually to the MCA.

Thanks,

Mr Verbeke

Hi,

Please refer to https://rbidocs.rbi.org.in/rdocs/notification/PDFs/FLAS150311F.pdf.

Thanks,