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Short answer
A foreign-owned company in India must report each foreign investment to RBI — FC-GPR within 30 days of issuing shares and FC-TRS within 60 days of a share transfer — and file the FLA return by 15 July every year. Payments to the parent, such as dividends, royalties and service fees, also need FEMA-compliant documents, tax withholding and arm's-length pricing.
Key filings and deadlines
| Filing | What it reports | When it is due |
|---|---|---|
| FC-GPR | Issue of shares or eligible instruments to a non-resident | Within 30 days of allotment |
| FC-TRS | Transfer of shares between a resident and a non-resident | Within 60 days of transfer or receipt/remittance of funds, whichever is earlier |
| FLA return | Foreign liabilities and assets as on 31 March | By 15 July each year |
| Form DI | Downstream investment by an Indian company with foreign ownership | Within 30 days of the investment |
| Form ODI / APR | Overseas investment by the Indian company and its annual performance | At the time of investment; APR by 31 December each year |
1. Reporting the investment: FC-GPR
When an Indian company issues shares, compulsorily convertible debentures or other eligible instruments to a person resident outside India, it must file Form FC-GPR on RBI's FIRMS portal through its Authorised Dealer bank within 30 days of allotment. Supporting documents usually include the valuation certificate, the bank's KYC report on the investor, and a company secretary's compliance certificate.
2. Share transfers: FC-TRS
A sale or gift of shares between a resident and a non-resident is reported in Form FC-TRS. The responsibility usually lies with the resident party. Pricing guidelines apply — a non-resident generally cannot buy below fair value or sell above it.
3. Annual FLA return
Every Indian company or LLP that has received foreign direct investment, or made overseas direct investment, files the FLA return by 15 July, using audited figures where available (unaudited figures can be filed and revised later).
4. Payments to the parent
- Dividends: declared under company law and remitted after withholding tax, applying treaty rates where the parent qualifies.
- Royalties and service fees: need a written agreement, withholding tax, and Form 15CA/15CB where applicable.
- Transfer pricing: all dealings with group entities must be at arm's length and documented.
5. If something was missed
Late reporting can usually be regularised by paying a Late Submission Fee within the time allowed. Beyond that, the contravention may need to be compounded, which takes longer and costs more. An annual FEMA health check avoids both.
Common questions
When must Form FC-GPR be filed?
Form FC-GPR must be filed on the RBI FIRMS portal through the company's bank within 30 days of allotting shares or other eligible instruments to a person resident outside India.
What is the due date for the FLA return?
The Annual Return on Foreign Liabilities and Assets (FLA) is due by 15 July each year, reporting the position as on 31 March. It applies to Indian companies and LLPs that have received foreign investment or made overseas investment.
When is Form FC-TRS required?
Form FC-TRS reports a transfer of shares between a resident and a non-resident. It must be filed within 60 days of the transfer or of receipt or remittance of funds, whichever is earlier.
What happens if a FEMA filing is late?
Delayed reporting can usually be regularised by paying a Late Submission Fee, within the time allowed under the regulations. Beyond that, the matter may need compounding, which is slower and costlier, so it is better to file on time.
Need your FEMA filings reviewed?
TENVY handles FC-GPR, FC-TRS, FLA, ODI and APR filings, and checks past compliance for gaps.
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This guide is general information, not legal or tax advice. FEMA regulations, RBI directions and deadlines change; confirm the current position for your facts before acting.