Quick Answer
As of June 7, 2018, the RBI introduced a Single Master Form (SMF) to streamline FDI reporting by subsuming previous ARF and FC-GPR forms. Companies must register and create an Entity Master on the RBI portal between June 28 and July 12, 2018, to remain compliant with the Foreign Exchange Management Act, 1999.
Have foreign investment, do you need to allot shares to NRI/ Foreign shareholders? Understand about the changes in FDI reporting
Initially, the filing of forms ARF ( Advanced Reporting forms) & FC GPR (Reporting of allotment of shares) used to file manually forms used for filing under FDI reporting
Considering the complex nature of data the RBI has decided to allow single form FDI reporting subsuming ARF ( Advance Reporting Form) FC GPR forms used for filing under FDI reporting
RBI vide its circular dated on June 7, 2018. (A.P (DIR Series) Circular No.30) has modified the FDI reporting procedures
With an objective of integrating the various reporting structures of foreign investments in India, a Single Master Form(SMF) is being introduced as an online reporting portal.
Features:
All Indian companies having FDI will mandatorily have to get registration completed with RBI and create an Entity Master on the provided link within 12th July 2018.
Complete foreign investments held by the company against which shares have been issued (reported and registration issued by RBI/reported pending registration/not reported) will have to update in the Entity master for FDI reporting
This interface will be available on RBI website www.rbi.org.in from June 28, 2018 to July 12, 2018 for registration of authorized personnel and creation of Entity Master FDI reporting
All Entities and companies are requested to register and create the Entity Master on the RBI site during the period from June 28 to July 12, 2018.
Indian entities not complying with this pre-requisite will not be able to receive foreign investment (including indirect foreign investment) and will be non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder
The Companies/LLPs having Foreign Direct Investments has to provide the details of its Foreign Investments in the dates mentioned above without fail. Those Companies /LLPs that are not complying with this pre-requisite will not be able to receive foreign investment(including indirect foreign investment) and will be non-compliant with Foreign Exchange Management Act, 1999 and regulations made thereunder.
The Single Master Form (SMF) is an online reporting portal introduced by the RBI to integrate various foreign investment reporting structures in India. It replaces the previous manual filing of Advanced Reporting Forms (ARF) and FC-GPR forms, simplifying the process for companies that have foreign direct investment.
All Indian companies receiving foreign direct investment are required to complete their registration and create an Entity Master on the RBI website between June 28, 2018, and July 12, 2018. This requirement was established under the RBI circular dated June 7, 2018, to ensure proper reporting of foreign investments.
Companies or LLPs that fail to register and create an Entity Master by the July 12, 2018 deadline will be considered non-compliant with the Foreign Exchange Management Act, 1999. Consequently, these entities will be unable to receive any future foreign investment, including indirect foreign investment, until they comply with these requirements.
The new Single Master Form (SMF) subsumes both the Advanced Reporting Form (ARF) and the FC-GPR form, which were previously used for reporting the allotment of shares to NRI or foreign shareholders. This change aims to simplify the complex nature of data filing for foreign direct investment reporting.
No, companies can no longer file manual forms. The RBI has transitioned to an online reporting portal system. Entities must now utilize the Single Master Form available on the official RBI website to report their foreign investments and manage their registration as required under the updated FDI reporting procedures.