Summary: Has your firm received any foreign direct investment (FDI)? Find out about the updated FDI compliance reporting introduced by the Reserve Bank of India (RBI) for all firms in India.

In its bi-monthly monetary policy review on 5^th April 2018, the Reserve Bank of India (RBI) announced that it will introduce a Single Master Form (SMF) to consolidate the extant reporting of various types of foreign investment in India.

To adhere to this compliance, all firms that have ever received any foreign direct investment (FDI), must fill an online Single Master Form (SMF) on the RBI website between 28^th June 2018 to 12^th July 2018.

Here is some key information regarding FDI reporting compliance for firms:

• Firms to Comply: 
  - A company within the purview of section 1(4) of the Companies Act, 2013
  - A Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008
  - A startup which complies with the conditions laid down in Notification No. G.S.R 180(E) dated February 17, 2016 issued by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India 
  
  

• Activity Type: One-time reporting
  
  
• Reporting Window: 28th June 2018 to 12th July 2018  
  
  
• Who can apply: Authorised personnel as appointed by Directors of the Company. Companies to authorize personnel through a letter to complete the Entity Master on behalf of the company. Authorisation will be by senior most officials in the company (directors).
  
  
• Consequences of non-compliance: Indian entities not complying with this prerequisite will not be able to receive foreign investment (including indirect foreign investment) and will also be termed non-compliant under Foreign Exchange Management Act, 1999 and regulations made there under. 
  
  

Link will be accessible 24*7 for updation.

For more details on the compliance process, click here. 

The integration of the extant reporting structures has been introduced by the RBI to simplify and rationalise reporting for foreign investment in India.