Thursday, March 5, 2015

Reporting of Advance Foreign Remittance to RBI egov.biz potral source


Description
Foreign investment comes into India in various forms. Following the reforms path, the Reserve Bank has liberalized the provisions relating to such investments. 
  • The Reserve Bank has permitted foreign investment in almost all sectors, with a few exceptions. Foreign companies are permitted to set up 100 per cent subsidiaries in India.
  • In many sectors, no prior approval from the Government or the Reserve Bank is required for non-residents investing in India.
  • Foreign institutional investors are allowed to invest in all equity securities traded in the primary and secondary markets. The total investment by all the foreign institutional investors put together should not exceed 24 per cent of the issued and paid up capital of a company which can be raised up to the level of the prescribed sectoral cap by the respective companies by passing a special resolution to the effect.
  • Foreign institutional investors have also been permitted to invest in Government of India treasury bills and dated securities, corporate debt instruments and mutual funds. The NRIs have the flexibility of investing under the options of repatriation and non-repatriation
  • The Government allows Indian companies to issue Global Depository Receipts (GDRs) and American Depository Receipts (ADRs) to foreign investors The GDRs/ADRs issued by Indian companies to non-residents have free convertibility outside India.
All foreign investment through any of the channels mentioned above are required to be reported to RBI under FEMA, 1999.
Any company or organization receiving foreign investment must report the transaction to the Reserve Bank of India in stipulated time. The reporting of the transaction must be done as illustrated in the figure below.
FC-ARF
Advance Foreign Inward Remittance Reporting should be done within 30 days of receipt of funds from the foreign entity.
Please click on the link Master Circular for Foreign Investment in Indiafor further information on Foreign Investments in India issued by RBI
Prerequisites

Before reporting the transaction, applicant needs to obtain following documents:
  • Foreign Inward Remittance Certificate from the bank evidencing the receipt of the remittance.
  • KYC report on the non-resident investor from the overseas bank remitting the amount
Payment Details
Applicant is asked to pay only a nominal eBiz transaction fee while submitting application form on eBiz portal.
Service Window
Applicant can apply for Reporting of Advance Foreign Remittance at any time of the year.
Processing Steps

Application, once submitted will flow through following status before request is completed. Applicant can use this information to track status of his application.
  1. Submitted
  2. Resubmission Required*
  3. UIN generated
  4. Refund request processed*
  5. Resubmission of refund letter*
  6. Compounding Memo Received*
  7. Complete

Note: Items marked with * are states in certain exception flows. Your application may not necessarily pass through these states during processing.
Department
Foreign Exchange Department
Reserve Bank of India
(www.rbi.org.in)
Contact Department
Address:

Reserve Bank of India,

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