RBI FIRMS APPLICATION
Reserve Bank is introducing an online application, FIRMS (Foreign Investment Reporting and Management System), which would provide for the SMF. FIRMS would be made online in two phases. In the first phase, the first module viz., the Entity Master, was made available online. Instructions in this regard were already issued through A. P. Dir. Series Circular No. 30 dated June 07, 2018.
1.1 In the second phase, the second module is being made available with effect from September 01, 2018. With the implementation of SMF, the reporting of FDI, which is presently a two-step procedure viz., ARF and FC-GPR is merged into a single revised FC-GPR. At present five forms viz., FC-GPR, FC-TRS, LLP-I, LLP-II and CN are being made available for filing in SMF. The other four forms viz., ESOP, DI, InVi and DRR would be made available subsequently. With effect from September 01, 2018, all new filings for the above 5 forms have to be done in SMF only.
1.2 The first module was made available to the public for data entry between June 28 (at 1:00 PM) and July 12, 2018. The date was extended till July 20, 2018. For those companies which could not register within the stipulated time period may register for the entity master with effect from September 01, 2018. However, they shall provide the reasons for not making registration within the time period along with the authority letter.
1. FIRMS: An online reporting platform for reporting of foreign investment in India in SMF. FEMA 20(R) prescribes for the reporting of foreign investment in India through various returns. FIRMS provides a one stop shop, 24*7 online reporting facility for the applicant.
2. SMF: A master form which provides for the reporting of 9 forms for foreign investment viz., FC-GPR, FC-TRS, LLP-I, LLP-II, CN, DRR, ESOP, DI, InVi. With effect from September 1, 2018, five forms viz., FC-GPR., FC-TRS, LLP-1, LLP-II and CN would be made available. Other four forms viz., ESOP, DI, DRR and InVi would be made available subsequently.
3. E-KYC: Every business user has to be eKYC verified before any reporting can be made in the Single Master Form. This would ensure that only genuine Logins are made available in the FIRMS application. All eKYC would be verified by the AD banks.
Important things:-FC-GPR: FCGPR is for allotment of equity shares etc. for FDI! Now filling of two separate forms namely ARF & FC-GPR not required, whereas within 30 days from receipts of foreign onwards remittance need to file FC-GPR through FIRMS Portal.
Whether previosly FC-GPR not submitted in time?
We can file compounding application to RBI!!
An Indian company issuing capital instruments to a person resident outside India and where such issue is reckoned as Foreign Direct Investment, has to issue the same within 60 days (now within 30 days in SMF) from the date of receipt of amount of consideration and shall report such issue in Form FC-GPR to the Regional Office concerned of the Reserve Bank under whose jurisdiction the Registered office of the company operates, not later than thirty days from the date of issue of capital instruments. Issue of participating interest/ rights’ in oil fields shall be reported in Form FC-GPR.
If this is the first time non-reporting in time, file an application of compounding of offence with RBI.
We can assists your organisation for RBI compliance part.
CA. Ashwani Rastogi
Partner, ARJS & Associates
M.Com, FCA, ACS, FAFD
Address- 2029, Bank St, Near Shreem Jewellers, Block 47, Beadonpura,
Karol Bagh, New Delhi, Delhi 110005
Mobile Number- +91-9990999281
Mobile Number- +91-9990999281