one of my client received the forighn investment to his savings account. because since that time the current account was not opened to the pvt company.and he received the FIRC from the bank mentioning his name.
now we need to file the FCGPR to the RBI the problem is the money came to savings account, but we need to file the FCGPR in the name of PVT LTD Company because the money is received for CAPITAL INVESTMENT From the FOREIGNER.
kindly guide us what steps to be taken. and the money came to the account to the bank in the month of Oct-2011.
Please follow the below given formalities in case of FDI:
REPORTING OF FDI
(i) Reporting of Inflow
(a) An Indian Company receiving invest from outside India for issuing 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 30days from the date of receipt in the advance. (b) Indian company are required to report the details of the receipt of the amount of consideration for issue of shares through an AD Category-I bank, together with the copy of the FIRC evidencing the receipt of the remittance along with the KYC report on the non-resident investor from the overseas bank remitting the amount.
(ii) Time frame within which shares have to be issued
The equity instruments should be issued within 180 days from the date of receipt of inward remittance or by debit to the NER/FCNR (B) account of the non-resident investor. In case the equity instruments are not issued within 180 days from the date of receipt of the inward remittance or the date of debit to the NER/FCNR (B) account, the amount of consideration so received should be refunded immediately to the non-resident investor by onward remittance through normal banking channels or by credit to the NER/FCNR(B) account, as the case may be. Non-compliance with the above provision would be reckoned as a contravention under FEMA and could attract penal provisions. In exceptional cases, refund of the amount of consideration outstanding beyond a period of 180 days from the date of receipt may be considered by the Reserve Bank, on the merits of the case. (iii) Reporting of Issue of Shares
(a) After issue of shares the Indian company has to file Form FC-GPR not later than 30 days from the date of issue of shares. (b) Part-A of Form FC-GPR has to be dully filled up and signed by MD/Director/Secretary of the Company and submitted to the Authorised Dealer(AD) of the company, who will forward it to the RBI. (c) The report of the receipt of consideration as well as Form FC-GPR have to be submitted by the AD bank to the Regional office concerned of the RBI under whose jurisdiction the Registered office of the company is situated. (d) Part-B of Form FC-GPR should be filed on an annual basis by the Indian Company, directly with the “Advisor, Balance of Payment Statistical Division, Department of Statistics and Information Management, RBI, C9, 8th Floor, Bandra-Kurla Complex, Bandra (E), Mumbai-400051”. This is an annual return to be submitted by 31st July every year, pertaining to all investments by way of direct/portfolio investments/re-invested earning/ others in the Indian company during the previous years.
but the problem arised on FIRC certficate. since the money cam to indvidual indian director savings account. but we need to file FCGPR along with FIRC in the name of the company. now the FIRC certifcate is in the name of indvidual now how to go about it. this is my quaries..
05 March 2012
If you want that fund will credit in your company name then the money refund the same to him and again you received the same through AD Bank in the name of the company.
CAclubindia
