FC-GPR is a type of form which is to be filed with Reserve Bank of India under FEMA (Foreign Exchange Management Act, 1990). When an LLP or a company gets Foreign investment it has to file report to RBI in the form of FC-GPR only. FC-GPR is the abbreviation of Foreign Collaboration General Permission Route.
FC-GPR filing is highly important and essential. Non-adherence to the compliances issued by the Reserve Bank of India can lead to a plethora of penalties. FC-GPR penalties are strict in nature. FC-GPR penalty varies and differs from one case to another. It is not the same in every case. It is compulsory to file for FC-GPR along with the supportive documents with the Reserve Bank of India within 30 days from the issue of the shares of the company. The penalty is one percent of the total amount of investment and a maximum of Rupees Five Lakhs per month for the first six months of delay and twice that rate after six months delay.
Compounding means the voluntary process of admitting the wrong, pleading guilty, and seeking redressal methods. The RBI has the power to compound any contravention directly. It is given under the Section 13 of FEMA.
In case any company does not adhere to any compliance or rule related to the FC-GPR, RBI imposes a substantial penalty over it, also known as ‘compounding’. Penalty for non-filing the FC-GPR includes:-
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