Foreign Investors – Startup Guidelines and Process.
The legal and compliance process
- Obtaining the Foreign Inward Remittance Certificate (FIRC) from the Indian bank.
- Filing the Annexure – 6 with the RBI within 30 days from the receipt of the money along with a copy of FIRC and a covering letter.
- Valuation of the shares to be made by the Charted Accountants and obtaining the valuation report.
- Board meeting to be conducted to allot the share to the respective investors.
- Obtaining the Know Your Client (KYC) of investor from the remittance Bank.
- Obtaining Certificate from Statutory Auditors or Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.
- Obtaining Certificate by a Company Secretary.
- Share allotment details (Extracts of allotment)
- Form FC – GPR to be filed through “AD category I bank” within the 60 days from the date of allotment of shares to the RBI along with the following documents
- Certified copy of FIRC
- KYC in original
- CS Certificate in original
- CA certificate in original
- Extracts of the Board Meeting for allotment
- Covering letter
Further the entire reporting i.e. filing Form FC – GPR should be completed with in 180 days from the date of inward remittance.
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