Foreign Direct Investment (FDI) Compliance
FDI compliance — sectoral caps and routes, pricing, FC-GPR and FC-TRS reporting, FLA returns and downstream investment.
- Estimate Cost
- ₹25,000 – ₹2,00,000
- Typical duration
- 15 days
Service overview
FDI compliance ensures that foreign investment into an Indian company follows FEMA, the Non-Debt Instruments Rules and the Consolidated FDI Policy. This covers sectoral caps, entry routes, pricing guidelines and reporting to the RBI.
Who needs it? / When is it needed?
- Indian companies and LLPs receiving foreign investment.
- Startups raising funds from foreign VCs or angels.
- When shares are transferred between residents and non-residents, or on downstream investment by foreign-owned companies.
What to expect from the WCP Professionals
- Sectoral cap and entry route analysis (automatic or government approval).
- Structuring through equity or convertible instruments.
- Valuation and pricing compliance.
- Government approval applications via the FIF Portal where required.
- FC-GPR and FC-TRS filings, annual FLA returns, downstream investment and repatriation advice.
Key deliverables
- FDI compliance memo.
- Filed reporting forms with acknowledgements.
- Government approval, where applicable.
- Annual FLA return.
Standard turnaround time
- Structuring advice: 1–2 weeks.
- FC-GPR due within 30 days of allotment.
- FC-TRS due within 60 days of transfer or receipt of payment.
- Government approvals typically take 8–12 weeks or more.
Government fees, timelines & key outcomes
- No government fee for RBI reporting.
- Late submission fees apply for delayed reporting.
- FLA return due by 15 July each year.
- Key outcome: legally valid foreign investment with smooth future repatriation.
Forms & filings involved
- Form FC-GPR (issue of shares).
- Form FC-TRS (transfer of shares).
- Form LLP-I/LLP-II (LLPs).
- Form DI (downstream investment).
- FLA return.
- Filings on RBI's FIRMS portal.
Documents required
- Incorporation documents and shareholding pattern.
- FIRC and KYC from the AD bank.
- Valuation report.
- Board and shareholder resolutions.
- Investor KYC and investment agreements.
What we need from you
- Advance information on proposed investments.
- Coordination with your AD bank.
- Timely allotment of shares.
Important conditions
- Shares must be allotted within 60 days of receiving funds, otherwise the funds must be refunded.
- Investment from countries sharing a land border with India needs government approval.
- Pricing must meet fair value norms.
Additional information
- Non-compliance can be regularised through compounding.
- Related services: FEMA, Transfer Pricing, ROC
- MCA Compliance.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
What is the automatic route for FDI?
Investment that needs no prior government approval, permitted in most sectors up to the sectoral cap.
Is a valuation needed for issuing shares to foreign investors?
Yes. Pricing must follow the FEMA pricing guidelines, supported by a valuation by a CA, merchant banker or registered valuer.
When is the FLA return due?
By 15 July each year, for companies with foreign investment or overseas investment.
Are investments from neighbouring countries restricted?
Yes. Investments from countries sharing a land border with India, or where the beneficial owner is from such a country, need government approval.