What is Penalty for delayed reporting of foreign investment (FC-GPR)?
Nexa Consultancy | Startup & Finance Glossary
Form FC-GPR must be filed within 30 days of issuing shares to a foreign investor. Delay in filing is a contravention of FEMA and requires compounding with the RBI, which involves paying a penalty. The penalty amount is not fixed and is determined by the RBI.
Startup Example: A startup delays its FC-GPR filing for its seed round. During its Series A due diligence, the new investors flag this as a major compliance lapse, delaying the funding until the compounding process is complete.
Our corporate law services ensure timely filings.