Funding a subsidiary with share capital usually needs no prior approval in open sectors, but it triggers post-investment reporting that later supports repatriation. India's automatic route needs no approval, yet the issue must be reported in Form FC-GPR within 30 days of allotment at a price not below fair value; investors linked to land-border countries need government approval. The US requires a BEA filing within 45 days of a new foreign investment, Saudi Arabia requires prior registration with the Ministry of Investment, and Nigeria relies on a Certificate of Capital Importation.
India: route, pricing and FC-GPR
Investment under the automatic route needs no prior approval from the RBI or the government; government-route proposals are filed on the Foreign Investment Facilitation Portal, with an indicative processing timeline of 12 weeks. Investors from a country sharing a land border with India, or whose beneficial owner is from such a country, must use the government route under Press Note 3 of 2020.
After shares are allotted, the company reports in Form FC-GPR within 30 days through the Single Master Form on the RBI's FIRMS portal, under the 2019 reporting regulations. Shares must be issued at or above fair value supported by a valuation certificate. Late filing costs INR 7,500 plus 0.025% of the amount per day of delay, capped at the amount involved. Downstream investment by a foreign-owned Indian company counts as indirect foreign investment and follows the same conditions.12345678
Other reporting and registration regimes
In the US, a business enterprise in which a foreign entity acquires 10% or more of the voting interest, or a new US entity set up by a foreign entity, must file BEA Form BE-13 within 45 days; BEA surveys are mandatory. In Saudi Arabia a foreign investor must register with the Ministry of Investment before investing. In Nigeria inflows should be documented with a Certificate of Capital Importation, which later supports access to foreign exchange for repatriation.91011
| Market | Before investing | After investing | Source |
|---|---|---|---|
| India | None on automatic route; government approval on government route or for land-border investors | Form FC-GPR within 30 days of allotment | FIFP FAQs; RBI rules as summarised |
| United States (federal) | Not covered here (CFIUS) | BEA Form BE-13 within 45 days | BEA |
| Saudi Arabia | Registration with the Ministry of Investment | Not researched | Investment Law |
| Nigeria | Capital imported through an authorised dealer | Certificate of Capital Importation | NIPC |
Decisions to make
- Is the sector on the automatic route, and is any beneficial owner linked to a country bordering India?132Either point can turn a same-week investment into a government approval process.
- Is the issue price supported by a current valuation at or above fair value?6FEMA pricing rules apply to issues to non-residents.
- Who will file FC-GPR, and when are shares being allotted?47The 30-day clock runs from allotment and late fees accrue daily.
- Will the Indian subsidiary itself invest downstream?8Its investments count as indirect foreign investment.
- Does the investment trigger a BEA filing or Saudi MISA registration?910Both are mandatory and separate from company registration.
Documents usually needed
- Board and shareholder resolutions approving the share issue
- Valuation certificate from a chartered accountant or SEBI-registered merchant banker (India)
- Inward remittance advice and KYC of the foreign investor from the receiving bank
- Form FC-GPR filed through the FIRMS portal (India) or BEA Form BE-13 (US)
- Ministry of Investment registration (Saudi Arabia) or Certificate of Capital Importation (Nigeria)
Common mistakes
- Counting the FC-GPR deadline from receipt of funds instead of allotment, or missing it altogether
- Issuing shares below fair value to a non-resident
- Overlooking an indirect beneficial owner from a land-border country
- Bringing capital into Nigeria without a Certificate of Capital Importation
- Not filing the US BE-13 because no tax or company filing prompted it
Questions businesses ask
Does a Singapore company need approval to invest in an Indian subsidiary?
Not on the automatic route, unless its beneficial owners are from a country bordering India. The issue must still be reported in Form FC-GPR within 30 days of allotment.134
Is the US BE-13 optional?
No. BEA states that its surveys of foreign direct investment are mandatory and confidential.9
What this guide does not yet confirm
These points need checking with a qualified local professional before you rely on them.
- The RBI Master Direction on Foreign Investment could not yet be checked; FC-GPR timing, fee and pricing points come from a secondary source.
- Post-investment reporting in the UAE, Singapore, UK, Germany and France was not researched; investment screening is covered under transactions.
- Germany's and France's foreign investment screening thresholds and the US CFIUS regime are not covered in this module.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
Foreign investment under the automatic route does not need prior approval of the RBI or the central government, while investment under the government route needs prior government approval and must follow the conditions of that approval. Applies by sector under the Consolidated FDI Policy and the FEMA (Non-debt Instruments) Rules, 2019. Central rule.
The FAQ document is undated; it refers to the Consolidated FDI Policy Circular of 15 October 2020 as amended. Reused from market guide claim in-establish-001.
Government-route FDI proposals are filed online on the Foreign Investment Facilitation Portal and assigned by DPIIT to the competent administrative ministry, with an indicative cumulative processing timeline of 12 weeks that excludes time taken by the applicant to supply information. Standard Operating Procedure dated 4 May 2026; DPIIT has two further weeks for proposals proposed for rejection or extra conditions. Central rule.
Reused from market guide claim in-establish-005.
An entity of a country that shares a land border with India, or whose beneficial owner is situated in or is a citizen of such a country, can invest in India only under the government route (Press Note 3 of 2020), and a transfer of existing or future FDI that moves beneficial ownership into that group also needs government approval. Central rule. Pakistani citizens and entities may invest only under the government route and not in defence, space, atomic energy or prohibited sectors.
An Indian company that issues capital instruments to a foreign investor must report the issue in Form FC-GPR within 30 days of allotment, through the Single Master Form on the RBI's FIRMS portal, and the form is verified by its authorised dealer bank. Central rule (RBI). The 30 days run from allotment, not from receipt of funds.
Secondary source (Indian advisory firm). The RBI Master Direction on Foreign Investment in India could not yet be checked because the RBI website refused automated access; confirm against the Master Direction and the FEMA reporting regulations.
Reporting of foreign investment is governed by the RBI's Foreign Exchange Management (Mode of Payment and Reporting of Non-Debt Instruments) Regulations, 2019. Central rule (RBI under FEMA).
Reporting forms and deadlines were not confirmed because RBI pages could not yet be checked. Reused from market guide claim in-banking-002.
Shares issued to a foreign investor must be priced at or above fair value under the FEMA pricing guidelines, supported by a valuation certificate from a practising chartered accountant or SEBI-registered merchant banker. Central rule. The source states the certificate should not be more than 90 days old at allotment.
Secondary source (Indian advisory firm). The RBI Master Direction on Foreign Investment in India could not yet be checked because the RBI website refused automated access; confirm against the Master Direction and the FEMA reporting regulations.
Late FC-GPR filing attracts a late submission fee of INR 7,500 plus 0.025% of the amount involved for each day of delay, capped at 100% of the amount involved. Central rule (RBI), as summarised from RBI A.P. (DIR Series) Circular No. 16 of 30 September 2022.
Secondary source (Indian advisory firm). The RBI Master Direction on Foreign Investment in India could not yet be checked because the RBI website refused automated access; confirm against the Master Direction and the FEMA reporting regulations.
Downstream investment by an Indian entity that is foreign-owned or foreign-controlled counts as indirect foreign investment and must comply with the entry route, sectoral caps, pricing guidelines and other conditions. Central rule (FDI Policy and FEMA Non-debt Instruments Rules).
Reused from market guide claim in-banking-007.
A US business enterprise must file BEA Form BE-13 no later than 45 days after a foreign entity acquires a direct or indirect voting interest of at least 10 percent in it, or after a foreign entity establishes a new US legal entity or expands into a new facility. Federal. BEA states that all its surveys of foreign direct investment in the United States are mandatory and confidential. Annual (BE-15) and quarterly surveys apply to foreign-owned US enterprises separately.
A foreign investor must register with the Ministry of Investment before engaging in any investment in Saudi Arabia. Applies to foreign investors generally; investments in securities governed by the Capital Market Law are outside this requirement.
Reused from market guide claim sa-establish-001.
For the export-profits exemption, all inflows must be accounted for in line with Central Bank of Nigeria regulations, for example through Certificates of Capital Importation. Nigeria Tax Act 2025 section 51, as summarised by NIPC.
Official NIPC summary, stated to be not legally binding; the underlying Act could not yet be checked directly. Section references in the booklet are inconsistent in places. Reused from market guide claim ng-banking-002.
Questions on this topic
11 statements on equity funding and foreign investment reporting
