Advance authorization scheme for exports
Fema Experts
Incorporation & Registration Service
7. Creation of Entity User on RBI Portal
The Creation of an Entity User on the Reserve Bank of India (RBI) Portal is essential for entities that need to report transactions under FEMA regulations. The Entity User is primarily responsible for submitting compliance filings such as foreign investment reports, borrowing details, and other FEMA-related transactions via the RBI’s Foreign Investment Reporting and Management System (FIRMS).
Here’s a detailed overview:
Purpose of Entity User Registration
An Entity User account is required for:
– Reporting foreign investments such as FDI, FPI, and LLP investments.
– Filing forms like Form FC-GPR, Form FC-TRS, and ODI filings.
– Submitting External Commercial Borrowings (ECB) and related transactions.
Steps for Creating an Entity User-
- Access the FIRMS Portal:
- Go to the RBI FIRMS portal: FIRMS Portal.
- Select ‘Entity User’ Registration:
- On the homepage, click on the ‘New Entity User’ option to begin the registration process.
Fill in the Entity Details: Provide details of the entity such as:
– Entity Name: Legal name of the company/LLP/organization.
– Corporate Identification Number (CIN) or LLP Identification Number (if applicable).
– Entity Type: For example, Company, LLP, Trust, etc.
– Registered Office Address.
Provide Authorized Representative Details:
Enter the details of the individual who will act as the authorized signatory for the entity:
– Name, designation (e.g., CFO, Company Secretary).
– Email ID (used for correspondence).
– Mobile number.
Upload Required Documents:
- Authority Letter: A letter from the entity appointing the individual as the authorized representative. This letter must be signed by a competent authority (e.g., Managing Director, CEO).
- Entity Identification Proof: Such as the PAN card, Certificate of Incorporation, or any other registration document.
- Representative’s Identity Proof: Passport, PAN, or Aadhaar.
- Address Proof: For both the entity and the authorized individual.
Submit the Registration Application:
After filling in the details and uploading the documents, submit the form.
Verification and Approval by RBI:
– The RBI verifies the application and supporting documents.
– Approval is typically granted within a few business days, and login credentials are sent to the registered email ID.
Incorporation & Registration Service
8. DPIIT- Startup India Recognition
This plan is applicable to those startups who want to claim various exemption provided by the Govt of India like fast-track statutory clearances, easy funding, tax exemption credit facilities, rapid FDI approvals, and rebates on Intellectual Property
- Consultancy related to registration
- Online Filing Application
- Certification if required
Documents Requirement-
- Certificate of Incorporation, Business PAN, Applicant’s Aadhar Letter of Applicant’s Authorisation
- An Active Mobile Number & An Active Email Address, Pitch Deck/Website Link
- 80IAC- Startup Tax Exemption
This plan is applicable to those startups who want to get various initiatives and benefits offered by Startup India.
Intellectual Property Rights (IPR) benefits –
– Fast tracking, rebate on applications, etc.
– Fund of Funds for Startups (FFS)
– Self-Certification under Labour and Environmental laws
– Tax Exemption for 3 years under Section-80IAC of the Income Tax Act
– Exemption on Investments above Fair Market Value under Section 56(2) (viib) of the Income Tax Act
– Relaxation in public procurement norms
– Faster Exit for Startups
– Seed Fund Scheme
– Startup India Hub – A one stop network for entire Startup ecosystem
Documents Required
The documents shall be communicated to you by our experts based on your requirements
Incorporation & Registration Service
9. DPIIT – Seed Fund Application
This plan is applicable to those startups who recognized by the DPIIT and Govt ready to provide financial support to Startups during their initial stages of operations.
- Consultancy regarding seed fund application
- Drafting of Resolutions
- Preparing Fund Deployment plan
- Online filing application
- End to End assistance
Documents Required
Certificate of Incorporation, DPIIT Recognition Certificate Business PAN, Applicant’s Aadhar Letter of
Applicant’s Authorisation, An Active Mobile Number & An Active Email Address.
Incorporation & Registration Service
10. Money Changer License Registration
To operate as a money changer in India, entities must obtain a Full-Fledged Money Changer (FFMC) License from the Reserve Bank of India (RBI). This license authorizes businesses to engage in foreign exchange activities, including buying and selling foreign currency.
Eligibility Criteria-
– Company Incorporation: The applicant must be a company registered under the Companies Act, 2013.
– Net Owned Funds (NOF):
- For a single-branch license: Minimum NOF of ₹25 lakh.
- For a multi-branch license: Minimum NOF of ₹50 lakh.
– Object Clause: The company’s Memorandum of Association (MoA) should explicitly state the intention to undertake money-changing activities.
– Legal Compliance: The company and its directors should not have any pending legal cases with the Directorate of Enforcement (DoE) or the Directorate of Revenue Intelligence (DRI).
Application Procedure:
Preparation of Documents:
- Certificate of Incorporation.
- MoA and Articles of Association (AoA).
- Audited financial statements.
- Banker’s report.
- Details of directors and shareholders.
Submission of Application:
– Compile the application along with the required documents.
– Submit to the RBI’s regional office under whose jurisdiction the registered office of the applicant company is located.
RBI Review:
– The RBI will scrutinize the application and may request additional information or clarification.
Grant of License:
– Upon satisfactory review, the RBI will issue the FFMC license.
Post-Approval Requirements:
– Commencement of Business: The company must commence money-changing operations within six months from the date of license issuance.
– Compliance: Adhere to all RBI guidelines, including reporting requirements and maintaining the prescribed NOF.
Renewal of License:
– The FFMC license is typically valid for one year.
– Renewal applications should be submitted at least two months before the license’s expiry date.
Key Considerations:
- KYC and AML Compliance: Implement robust Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures as per RBI guidelines.
- Record Maintenance: Maintain detailed records of all transactions for a minimum period as specified by the RBI.
- Franchise Agreements: FFMCs can enter into franchise agreements to conduct restricted money-changing activities, subject to RBI approval.
Incorporation & Registration Service
11. Indian Entities Receiving FDI
Indian companies receiving FDI must register and report the investment under FEMA guidelines.
Forms to Be Filed:
– Form FC-GPR: Reporting the issue of shares to foreign investors (filed within 30 days of share allotment).
– Form FC-TRS: Reporting transfer of shares between a resident and non-resident.
– Form LLP-I & LLP-II: For foreign investments in Limited Liability Partnerships.
Portal: FIRMS (Foreign Investment Reporting and Management System).
Approval/Intimation: Through the AD bank.
Incorporation & Registration Service
12. Indian Entities Making ODI
Indian companies making investments in foreign entities must comply with FEMA’s ODI guidelines.
Forms to Be Filed:
– Form ODI Part I, II, and III: For reporting financial commitments made abroad.
Approval Required:
– Prior approval from the RBI may be needed for certain transactions (e.g., investments exceeding prescribed limits).
Incorporation & Registration Service
13. Indian Entities Borrowings under ECB
Entities borrowing funds from foreign lenders under FEMA guidelines must report to the RBI.
Forms to Be Filed:
– ECB Form: Filing loan details with the RBI.
– Regular reporting of loan utilization and repayment.
Portal: FIRMS.