FIRC filing for investment recieved from NRO account

When a private limited company receives investment (equity) from a non-resident Indian (NRI) via NEFT from their Non-Resident Ordinary (NRO) account, there are specific reporting requirements. FIRC (Foreign Inward Remittance Certificate) Filing:

1. *Not Required*: Since the investment is received from an NRI's NRO account, which is an Indian rupee-denominated account, it's not considered a foreign inward remittance. Therefore, FIRC filing with the RBI is not required. 

2. *FC-GPR (Foreign Currency - General Permission Route) Reporting*: However, the company needs to report the investment in the FC-GPR form, which is filed with the Authorized Dealer (AD) bank. 

This form is used to report investments received under the automatic route. Other Reporting Requirements:

 1. *RBI's FEMA (Foreign Exchange Management Act) Reporting*: The company may need to comply with FEMA reporting requirements, such as filing the FLA (Foreign Liabilities and Assets) return.

 2. *Income Tax Reporting*: The company must report the investment in its income tax returns and comply with other tax regulations.

Thank you! So where we are stuck is - for FC-GPR we need the FIRC certificate from the bank right? The bank is saying they never received any foreign remittance so FIRC can't be given. 🤔

The bank's response is correct because the investment was received from the NRI's NRO account, which is an Indian rupee-denominated account, and not a foreign remittance. Alternative Approach:

1. *Certification from the Bank*: Instead of the FIRC, you can request the bank to provide a certification or a letter confirming that the investment amount was received from the NRI's NRO account.

 This certification can be used as supporting documentation for the FC-GPR reporting.

2. *FC-GPR Reporting without FIRC*: You can file the FC-GPR form with the AD bank, explaining the situation and attaching the bank's certification or letter.

 The AD bank may accept this documentation and process the FC-GPR reporting. Consultation with the Bank and AD Bank: It's recommended to have a discussion with both the bank that received the investment and the AD bank to: - Confirm their requirements and procedures - Ensure they accept the alternative documentation -

 Clarify any additional documentation or information needed By following this approach, you should be able to complete the FC-GPR reporting and fulfill the necessary compliance requirements.