Foreign Direct Investment Consulting Services India

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Foreign Direct Investment in India Compliance
Guide
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Foreign Investment In India
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Introduction
Foreign Direct investment is one of the key
drivers of the economy in India. Foreign
Institutional Investors, Foreign Portfolio
Investors, Venture Capitalists as well as NRIs
are allowed to hold shares in Indian businesses.
All such foreign direct investment is subject to
a few rules and regulations that all associated
entities have to comply with.
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Submit The Advance Reporting Form
The form needs to be filled with the RBI within
30 days of receiving the money for shares. PAN
and other basic details of the investee and
investor are required. The form must be filled
manually on the central banks website.
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Handling The Share Application Money
The money received in lieu of shares must be
kept in a separate bank account. The funds
cannot be used unless shares have been issued to
the investors. Promoters and directors can be
penalized for violating this condition.
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Time-period For Allotment Of Shares
RBI states that shares must be allotted within
180 days of receiving the money. The Ministry
Of Corporate Affairs stipulates that stock must
be issued within 60 days. Convene a board
meeting to allot stocks to the investors.
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Filing The Foreign Investment Report
Submit the report through the Foreign Currency
General Purchase Register (FCGPR) form. The
report needs to be filed within 30 days from the
date of issuing of shares. The form is
submitted to the RBI and contains information
about the share capital investment.
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Submitting Another Form With The MCA
Submit Form PAS-3 with MCA within 30 days of
the allotment of the stock to the investors.
This document contains details about the capital
and debt structure of the company. The form
must be signed by a chartered accountant or a
company secretary.
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Other Compliance Requirements
Issue the share certificate within 60 days of
allotment of the stock. Pay the stamp duty on
the stocks according to the rate in your
jurisdiction. Make the entries about the funds
in relevant account books.
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Contact Us
We are always happy to make valuable new
contacts.
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info_at_GlobalJurix.com
S-191 C, 3rd Floor, Manak Complex, School Block,
Shakarpur, New Delhi - 110092, India
91- 98100 62387