Reporting for fdi

For this, you need to refer Consolidated FDI Policy (April 2012).

Refer point no. 7.2 of this policy for reporting requirements of FDI. The same has been reproduced as under for your reference:

7.2. REPORTING OF FDI

7.2.1 Reporting of Inflow

(i) An Indian company receiving investment from outside India for issuing shares/convertible debentures / preference shares under the FDI Scheme, should report the details of the amount of consideration to the Regional Office concerned of the Reserve Bank not later than 30 days from the date of receipt in the Advance Reporting Form

enclosed as Annex-5.

(ii) Indian companies are required to report the details of the receipt of the amount of consideration for issue of shares / convertible debentures, through an AD Category-I bank, together with a copy/ies of the FIRC/s evidencing the receipt of the remittance along with the KYC report (enclosed as Annex-6) on the non-resident investor from the overseas bank remitting the amount. The report would be acknowledged by the Regional Office concerned, which will allot a Unique Identification Number (UIN) for the amount reported.

7.2.2 Reporting of issue of shares

(i) After issue of shares (including bonus and shares issued on rights basis and shares issued under ESOP)/fully, mandatorily & compulsorily convertible debentures / fully, mandatorily & compulsorily convertible preference shares, the Indian company has to file Form FC-GPR, enclosed in Annex-1, not later than 30 days from the date of issue of

shares.

(ii) Form FC-GPR has to be duly filled up and signed by Managing Director/Director/Secretary of the Company and submitted to the Authorized Dealer of the company, who will forward it to the Reserve Bank. The following documents have to be submitted along with the form:

(a) A certificate from the Company Secretary of the company certifying that:

(A) all the requirements of the Companies Act, 1956 have been complied with;

(B) terms and conditions of the Government‘s approval, if any, have been complied with;

(D) the company has all original certificates issued by authorized dealers in India evidencing receipt of amount of consideration.

Note: For companies with paid up capital with less than Rs.5 crore, the above mentioned certificate can be given by a practicing company secretary.

(b) A certificate from Statutory Auditor or Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.

(c) The report of receipt of consideration as well as Form FC-GPR have to be submitted by the AD Category-I bank to the Regional Office concerned of the Reserve Bank under whose jurisdiction the registered office of the company is situated.

Annual return on Foreign Liabilities and Assets (Annex 7) should be filed on an annual basis by the Indian company, directly with the Reserve Bank. This is an annual return to be submitted by 31st of July every year, pertaining to all investments by way of direct/portfolio investments/reinvested earnings/other capital in the Indian company made during the previous years (i.e. the information submitted by 31st July will pertain to all the investments made in the previous years up to March 31). Thedetails of the investments to be reported would include all foreign investments made into the company which is outstanding as on the balance sheet date. The details of overseas investments in the company both under direct / portfolio investment may be separately indicated.

Hence, As per the above, the reporting requirements are as under:

S.N	Particulars	Attachments/Documents required	Time Line
1	Advance Reporting Form (Annex 5 of FDI Policy)	(i) Copies of FIRC (ii) KYC Report (Annex 6 of FDI Policy)	Within 30 days from receiving of remittance .
2	Issue/allotment of shares	No	Within 180 days from the date of receiving the remittance.
3	EForm- 2 filing under Companies Act, 1956	(i) Scanned Copy (PDF – Black n white) of Board Resolution passed for issue of shares. (ii) Scanned Copy (PDF – Black n white) of List of allotees.	Within 30 days from the issue of shares but before filing of FCGPR, because this requires at the time of certification of FCGPR by CS.
4.	Form FCGPR (Annex 1A of FDI Policy)	(i) A certificate from the Company Secretary of the company certifying that: a) all the requirements of the Companies Act, 1956 have been complied with; b) terms and conditions of the Government’s approval, if any, have been complied with; c) the company is eligible to issue shares under these Regulations; and d) the company has all original certificates issued by authorized dealers in India evidencing receipt of amount of consideration. Note: For companies with paid up capital with less than Rs.5 crore, the above mentioned certificate can be given by a practicing company secretary. (ii) A certificate from Statutory Auditor or Chartered Accountant indicating the manner of *arriving at the price of the shares issued to the persons resident outside India.*	Within 30 days from the date of issue of shares.
7.	Annual Return on Foreign Liabilities and Assets	(i) This should pertain to all investments by way of direct/portfolio investments/reinvested earnings/other capital in the Indian company made during the previous years (i.e. the information submitted by 31st July will pertain to all the investments made in the previous year up to March 31). The details of the investments to be reported would include all foreign investments made into the company which is outstanding as on the balance sheet date. The details of overseas investments in the company both under direct / portfolio investment may be separately indicated. (ii) Balance sheet.	· On annual basis · By 31^st of July every year.