What is FEMA Reporting for FDI?
Nexa Consultancy | Startup & Finance Glossary
Involves reporting Foreign Direct Investment (FDI) to the Reserve Bank of India. Key forms include Form FC-GPR (for issue of shares to a foreign investor) and Form FC-TRS (for transfer of shares between a resident and non-resident).
Startup Example: A Singapore-based VC invests in an Indian startup. The startup must file Form FC-GPR within 30 days of issuing the shares. Failure to do so leads to penalties and may require compounding with the RBI.
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