A Limited Company receiving Foreign Direct Investment (FDI) through the automatic route shall fulfill certain compliance requirements.
1. Intimation of inward remittance to the RBI:
Indian companies receiving FDI should submit an intimation of amount received to the RBI within 30 days of receiving the inward remittance through the Authorized Dealer Bank (preferably the FDI recipient bank) along with:
- Copy of the Foreign Inward Remittance Certificates (FIRC) for each remittance and
- Know Your Customer (KYC) report by the bank. The foreign remitter bank (bank from which the inward remittance originates) has to submit the KYC information to the recipient bank to enable the submission of KYC to the RBI.
2. Issue of Shares:
Companies should issue shares within 180 days from the date of receipt of inward remittances.
3. Post issue requirements:
Upon issue of shares, the Indian company should file Form FC-GPR to the RBI through the Authorized Dealer Bank (preferably the FDI recipient bank) within 30 days of date of issue of shares along with:
- Share valuation report prepared as per Discounted Cash Flow (DCF) method certified by a Chartered Accountant
- Certificate by a Company Secretary in the prescribed format