FDI Filings with RBI

FDI Filings with Reserve Bank of India (RBI)

FDI Filings with Reserve Bank of India (RBI)

For a country where capital is not readily available, Foreign Direct Investment (FDI) has been an important source of funds for companies. Under FDI, overseas money, either by an individual or entity, is invested in an Indian company. According to Organization for Economic Co-operation and Development (OECD), an investment of 10% or above from overseas is considered as FDI. In India, foreign direct investment policy is regulated under the Foreign Exchange Management Act, 2000 governed.

One can invest in India - either under Automatic Route which does not require approval from RBI or under Government Route, which requires prior approval from the concerned Ministries/Departments via a single window - Foreign Investment Facilitation Portal (FIFB) administered by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry, Government of India. Apart from specified 11 sectors/activities (mentioned below), where Government approval is mandatory.

Procedure for Filing FDI

GST refunds can be claimed by the taxpayer while filing the tax returns at regular intervals. A procedure laid down under the GST Rules must be followed by taxpayer who wants to claim interest or refunds or input tax credits. The GST Refund process of claiming is as follows:

  • Need to submit FDI intimation forum within the 30 days from the date of crediting amount that must include covering letter, FDI initiation forum with details of both company and foreign inward remittance certificate.
  • And within 180 days from the date of receiving foreign funds; FCGPR FORM need to file through the bank. For which following documents are to be needed like :
  • Form FCGPR with Part A
  • Covering letter
  • Company Secretary Certificate that mentions the particular company receives foreign investment
  • Original FIRC
  • Copy of application of received funds to RBI
  • Need to submit KYC which we already followed in above as sent by remitting bank to Beneficiary bank
  • Memorandum of Association
  • Board Resolution that allow FDI in India