FDI

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 February 2010 A private limited company engaged in settingup and running of resorts received Rs.40 lacs from foreign natioal on 1.1.2008. the company is not yet filed the return. the company wants to keep the money in share application money till 31.03.2011. Whether it is possible ?. what are the various formalities to be complied by the company regarding rbi and fema regulations. what are the forms to be filed. what are the steps to be taken to regularise it. As per the present guidelines shares to be issued within 180 days. whether it is applicable for amount received in jan 2008

CA Chitresh Gupta

CA Chitresh Gupta (Expert)
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16 February 2010 A two-stage reporting procedure has been introduced for this purpose.
On receipt of money for investment:
Within 30 days of receipt of money from the non-resident investor, the Indian company will report to the Regional Office of the Reserve Bank of India, under whose jurisdiction its Registered Office is located, containing details such as:
â€¢ Name and address of the foreign investor/s
â€¢ Date of receipt of funds and their rupee equivalent
â€¢ Name and address of the authorised dealer through whom the funds have been received, and
â€¢ Details of the Government approval, if any.
Within 180 days from the date of receipt of remittance , a report in Form FC-GPR, together with KYC report along with the following documents should be filed with the concerned egional Office of the Reserve Bank of India.
â€¢ Certificate from the Company Secretary of the company accepting investment from persons resident outside India certifying that;
â€¢ All the requirements of companies Act has been complied with.
The terms and conditions of government approval, if any has been complied with.
The company is eligible to issue shares under these regulations
The company has all original certificates issued by authorized dealers in India evidencing the receipt of amount of consideration.
Certificate from Statutory Auditors or Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.