Foreign Inward Remittance for share application money

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Jalpa Shah (Querist)
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01 July 2009 One pvt ltd company has received foreing inward remittance for share application money. No shares were issued till date. So what is the procedure to be followed ? whether we should inform to the RBI, if yes what is the form...

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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01 July 2009 Step 1 : First check whether the receipt is eligible for automatic route.

Step 2 : Collect FICR from Bank stating that the money is towards share application money.

Step 3 : Allot the shares

Step 4 : File Form FC-GPR part A to RBI

Step 5 : Obtain unique code alloted by RBI for the company

Step 6 : File FC-GPR part B every year.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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23 May 2011 Also if the shares have allotted after 180 days of receipt of share application money or there is delay in filing of FCGPR-A then you shall need to go RBI for compounding.

Anuj
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