Why FEMA reporting matters
Foreign investment into India is permitted on terms, and the Foreign Exchange Management Act (FEMA) framework checks those terms through reporting. Most filings are made by the Indian entity through its authorised dealer (AD) bank on RBI’s FIRMS portal.
The calendar
| Filing or event | Deadline | Filed with | Applies to |
|---|---|---|---|
| Share allotment | Within 60 days of receiving the money; refund within the next 15 days if not allotted | Company and AD bank | Companies receiving foreign capital |
| FC-GPR | Within 30 days of issuing shares | RBI FIRMS portal | Companies issuing shares to non-residents |
| FC-TRS | Within 60 days of the transfer or of receipt or remittance of funds, whichever is earlier | RBI FIRMS portal | Transfers between residents and non-residents |
| LLP (I) | Within 30 days of receiving the capital | RBI FIRMS portal | LLPs receiving foreign capital |
| Downstream investment | Notify DPIIT within 30 days of investing; Form DI within 30 days of allotment | DPIIT; RBI FIRMS portal | Indian entities with foreign investment that invest further in India |
| Land-border prior report | Before the money is remitted, or before the transaction if there is no remittance | FIF/NSWS portal | Land-border ownership of 10% or less without control |
| FLA return | On or before 15 July each year | RBI | Companies and LLPs that have received FDI |
| Commencement of business | Within 180 days of incorporation and before starting business | MCA | New companies |
| LLP agreement | Within 30 days of incorporation | MCA | New LLPs |
Pricing rules behind the filings
Shares in an unlisted company may not be issued to a non-resident below fair value, as set by a SEBI-registered merchant banker or a chartered accountant. The valuation must be less than 90 days old at the time of issue.
Downstream investment
When an Indian company that has foreign investment invests in another Indian entity, that investment counts as indirect foreign investment. It follows the same sector caps, routes and pricing rules as direct FDI, and must be notified to DPIIT and reported in Form DI.
Sector-specific filings
- Defence: new foreign investment up to 49% in a company not seeking a new industrial licence needs a declaration to the Ministry of Defence within 30 days.
- E-commerce marketplaces: a statutory auditor’s report is due by 30 September each year confirming compliance with the marketplace conditions.
Items to confirm separately
The filings below also apply but their dates should be confirmed for the entity’s year end and type:
- annual financial statements and the annual return to the Registrar
- director KYC
- beneficial-ownership returns
- the Annual Activity Certificate for branch and liaison offices
Recent changes that affect reporting
- External commercial borrowing (Feb 2026): the limit is the higher of USD 1 bn of outstanding ECB or total borrowings of 300% of net worth. The cost ceiling was removed for ECBs of three years or more; shorter ECBs (manufacturers, up to USD 150 mn) follow the trade-credit ceiling.
- Listed shares (12 Jun 2026): any non-resident individual may buy listed Indian shares without FPI registration, below 10% each and 24% in aggregate.
- Land-border rule (2 May 2026): the report-first path within 10% took legal effect. See land-border investors.
Check: Draft Foreign Investment Rules to replace the FEMA (Non-debt Instruments) Rules were open for consultation from 21 July to 31 August 2026. Confirm whether forms or deadlines change in the final rules.
What to check next
- Set up a calendar that starts each deadline from its trigger date (money received, shares issued, transfer signed), not from month end.
- Agree with the AD bank how and when it needs documents for each FIRMS filing.
- Keep the fair-value report and board resolutions for every capital receipt on file before the FC-GPR is due.
- Before any downstream investment, check the target’s sector cap and route as if it were direct FDI.
- Diary 15 July every year for the FLA return, including in years with no new investment.