<\/span><\/h3>\n\n\n\nQ1. What is Form FC-GPR and when must it be filed?<\/strong>
Form FC-GPR (Foreign Currency \u2014 Gross Provisional Return) is an RBI filing that must be submitted within 30 days of allotting shares to a foreign investor. It is filed on RBI’s FIRMS portal and requires FIRC, KYC, valuation report, and board resolution. Non-filing within the deadline constitutes a FEMA violation.<\/p>\n\n\n\nQ2. Can a foreign parent company inject capital in multiple tranches into an Indian subsidiary?<\/strong>
Yes, multi-tranche FDI is permitted. However, each tranche must be separately allotted within 60 days of receipt, priced at FMV at the time of each tranche, and individually reported through a separate FC-GPR filing. Clubbing tranches in a single filing is non-compliant.<\/p>\n\n\n\nQ3. Is GST applicable on share capital injection from a foreign parent company?<\/strong>
No, GST is not applicable on share capital injection as it does not constitute a supply of goods or services. However, downstream services between the parent and subsidiary \u2014 such as management fees, royalties, or technical services \u2014 attract GST and must be properly invoiced and reported.<\/p>\n\n\n\nQ4. What valuation method is acceptable for pricing shares allotted to a foreign parent?<\/strong>
For unlisted Indian companies, shares must be issued at Fair Market Value (FMV) or above, determined by a SEBI-registered Merchant Banker or CA using internationally accepted methods such as Discounted Cash Flow (DCF) or Net Asset Value (NAV). The valuation report must be contemporaneous with the allotment date.<\/p>\n\n\n\nQ5. What is the FLA Return and who must file it?<\/strong>
The Foreign Liabilities and Assets (FLA) Annual Return must be filed with RBI by July 15 every year by any Indian company that has received FDI or made overseas investment, reporting balances as of March 31. It is mandatory even in years with no new FDI activity and is filed directly on the RBI’s survey portal.<\/p>\n","protected":false},"excerpt":{"rendered":"FEMA compliance for foreign parent companies remains one of the most technically demanding obligations when structuring cross-border equity investments into India. Whether you are a US-based holding company, a European MNC, or a Singapore-domiciled group entity planning to inject share capital into your Indian subsidiary, understanding the Foreign Exchange Management Act (FEMA) framework is non-negotiable […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[812],"tags":[],"class_list":["post-9548","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9548","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/comments?post=9548"}],"version-history":[{"count":1,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9548\/revisions"}],"predecessor-version":[{"id":9550,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9548\/revisions\/9550"}],"wp:attachment":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/media?parent=9548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/categories?post=9548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/tags?post=9548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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