Foreign investment in an Indian company brings reporting duties that start the day money arrives.
Allotment and reporting
When a company allots shares to a non-resident, a report must be filed with the RBI through the authorised dealer bank within a defined period from the date of allotment. The inward remittance should be tracked and matched with the allotment.
Transfers between residents and non-residents
A separate form applies when shares change hands between a resident and a non-resident. Pricing guidelines and the timing of payment also matter.
Late submission
Delays can be regularised through a late submission fee in many cases, but wider breaches may need compounding. Early advice is cheaper than correction.
This article is general information, not legal or tax advice. Rules and due dates change: please consult a professional before acting.