—Guide
CA Certificates for RBI and FEMA Filings: FDI, Overseas Investment and ECB
The professional certificates needed for FEMA filings — valuation for share issues and transfers, FDI reporting, overseas investment annual returns and ECB — and who can issue them.
Foreign investment into and out of India is reported to the RBI through authorised dealer banks, and many filings need professional certificates. Getting them wrong leads to late submission fees or compounding. This guide covers the main ones.
Inbound Investment (FDI)
- Valuation certificates: shares issued to or transferred with non-residents must meet pricing guidelines, supported by valuation by a chartered accountant, SEBI-registered merchant banker or practising cost accountant, as the rules allow.
- Reporting forms for share issues (FC-GPR) and transfers (FC-TRS) are filed on the RBI's FIRMS portal with supporting certificates, including professional certification of the form.
- The annual return on foreign liabilities and assets is filed by entities with foreign investment.
Outbound Investment (ODI)
- Valuation is required for certain overseas investments and disinvestments.
- The annual performance report on overseas entities generally needs certification by the Indian entity's statutory auditor or a chartered accountant, as the rules require.
External Commercial Borrowings
ECBs are reported to the RBI through the bank at the time of raising and periodically after. Some filings and changes need supporting certificates.
Who Can Certify
Some certificates can come from any practising CA; others must come from the statutory auditor or a merchant banker. Check the rule for each filing.
Late Filings
Late FEMA filings can be regularised by paying a late submission fee or through compounding. Act promptly once a gap is found.
Getting Help
Think Filing handles FEMA valuations, certifications and filings for inbound and outbound investment.