How to transfer money from abroad to an Indian company — FIRC, SWIFT, and FEMA rules

If you are an NRI, foreign national, or overseas investor who has recently completed your India incorporation or is planning to register a company in India, one of the first practical challenges you will face is this — how do you actually send money into your Indian company from abroad?

It sounds straightforward. You have a bank account overseas, your Indian private limited company has a bank account in India, and you want to transfer funds. But under Indian law, an inward remittance from a foreign investor into an Indian company is not just a wire transfer — it is a regulated foreign investment transaction governed by the Foreign Exchange Management Act (FEMA), the Reserve Bank of India (RBI), and the Companies Act 2013. Getting it wrong can mean penalties, rejected remittances, or complications during your next funding round.

This guide explains exactly how to transfer money from abroad to your Indian company — covering FIRC, SWIFT, and FEMA rules — in plain, practical terms.

Why This Is More Than Just a Bank Transfer

When a foreign investor or NRI sends money into an Indian private limited company as share capital or share premium, it is treated as Foreign Direct Investment (FDI) under the FEMA framework. This means the transaction must:

• Come through the proper banking channel (SWIFT wire transfer)

• Be reported to the RBI within a defined timeline

• Be supported by a Foreign Inward Remittance Certificate (FIRC)

• Result in an FC-GPR filing with the RBI within 30 days of share allotment

This applies whether you are putting in your initial capital after company formation in India or making a follow-on investment into an existing Indian company. The process is the same — and the compliance obligations are non-negotiable.

Step 1 — The SWIFT Transfer

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. It is the international messaging network that banks use to send money across borders securely. When you transfer money from your overseas bank account to your Indian company's bank account, it travels via SWIFT.

Here is what you need to initiate the SWIFT transfer:

• Your Indian company's bank account number (opened after private limited company registration in India)

• The bank's SWIFT code (also called BIC — Bank Identifier Code)

• The bank's full name and branch address

• Your Indian company's name exactly as registered with the Ministry of Corporate Affairs (MCA)

• The purpose of remittance — always state "Foreign Direct Investment — Share Capital / Share Premium" or "FDI in equity shares"

The purpose code matters. Your overseas bank will ask for it, and your Indian bank needs to correctly classify the inward remittance under the RBI's purpose code list. For equity investment into an Indian company, the correct purpose code is typically S0001 (capital account — equity) or a variant depending on your bank. Using the wrong purpose code can delay the transaction and create regulatory complications.

Step 2 — Obtaining the FIRC

Once the SWIFT transfer arrives in your Indian company's bank account, the first document you need to obtain is the Foreign Inward Remittance Certificate, commonly known as the FIRC.

A FIRC is a certificate issued by the Indian bank confirming that:

• A specific amount in foreign currency was received from abroad

• The remittance came through proper banking channels

• The purpose of remittance as stated by the sender

The FIRC is one of the most important documents in the entire India incorporation and foreign investment process. It serves as proof of inward remittance for RBI reporting, is attached to your FC-GPR filing, is reviewed by auditors during statutory audit, and is examined during due diligence by future investors and acquirers.

How to obtain the FIRC: Request it from your Indian bank within a few days of the remittance arriving. Most banks issue it within 3 to 7 working days. Some banks issue a physical FIRC; others issue an e-FIRC (electronic FIRC) which is equally valid and increasingly preferred.

Keep the FIRC permanently on record. You will need it every time you report a foreign investment or raise a funding round.

Step 3 — FEMA Compliance and RBI Reporting

Receiving foreign money into your Indian company is only the first part. Under FEMA and the RBI's FDI reporting framework, you must complete the following steps after the remittance is received:

Issue shares within 60 days

Under FEMA regulations, an Indian company that receives foreign investment as share capital must allot shares to the foreign investor within 60 days of receiving the funds. If shares are not allotted within 60 days, the money must be refunded. You cannot hold foreign investor money in your Indian bank account indefinitely without allotting shares.

File FC-GPR within 30 days of allotment

Once shares are allotted, you must file Form FC-GPR (Foreign Currency — Gross Provisional Return) with the RBI through the RBI's FIRMS portal within 30 days of the date of allotment. The FC-GPR filing includes:

• Details of the foreign investor (name, country, percentage shareholding)

• Amount received and date of remittance

• FIRC details

• Number and class of shares allotted

• Valuation certificate from a SEBI-registered Chartered Accountant or Merchant Banker confirming the shares were issued at or above FMV

This FC-GPR filing is mandatory regardless of the amount invested. There is no minimum threshold below which reporting is exempt.

Annual Return on Foreign Liabilities and Assets (FLA)

Every Indian company that has received FDI must also file the Annual Return on Foreign Liabilities and Assets (FLA Return) with the RBI by July 15 every year. This is a separate, recurring compliance obligation that continues every year as long as your company has outstanding foreign investment on its cap table.

Which Route — Automatic or Government Approval?

Most sectors in India allow FDI under the Automatic Route — meaning no prior approval from the RBI or the Government of India is required. The foreign investor simply transfers the money, the Indian company allots shares, and the FC-GPR is filed after the fact.

However, certain sectors require Government Approval Route — meaning prior permission must be obtained before any money is transferred. These include defence, media, insurance beyond certain thresholds, and a few others.

If you are registering a company remotely in India as a foreign investor in a standard sector — IT, SaaS, consulting, manufacturing, e-commerce — you almost certainly fall under the Automatic Route and do not need prior government approval.

When you use Accorp's foreign company incorporation services, we confirm the applicable FDI route for your sector before you transfer a single rupee — so there are no surprises.

Common Mistakes Foreign Investors Make

Sending money before the company bank account is open: Your Indian company must have a fully operational current account before you initiate the SWIFT transfer. Sending money to a newly opened account that has not yet been activated for current account operations can result in the funds being held or returned.

Wrong purpose code on the SWIFT transfer: As mentioned, the purpose code must correctly reflect equity investment. A wrong code can cause your Indian bank to classify the remittance incorrectly — creating problems for the FC-GPR filing.

Missing the 60-day allotment deadline: This is a FEMA violation. If shares are not allotted within 60 days of receiving the funds, the company is in breach of FEMA regulations and must either seek compounding (a penalty payment process with the RBI) or refund the money.

Not filing FC-GPR on time: Late FC-GPR filings attract a late submission fee calculated based on the amount of investment and the delay period. These fees can be significant for large investments.

Not obtaining or retaining the FIRC: Many first-time founders register a company in India remotely and forget to request the FIRC from their bank immediately after the remittance. Without the FIRC, you cannot complete the FC-GPR filing.

How Accorp Handles This for Foreign Founders

As part of our India incorporation and company formation in India services, Accorp Partners manages the entire inward remittance compliance process for foreign investors and NRIs — from helping you set up the correct bank account, advising on the right purpose code for your SWIFT transfer, obtaining the FIRC, and filing the FC-GPR with the RBI within the statutory deadline.

Our clients span founders across the US, UK, Singapore, UAE, Canada, and Australia who needed to register a business in India and then fund it correctly from day one. The pvt ltd company registration cost in India is only one part of the equation — the ongoing FEMA compliance is what determines whether your company remains in good regulatory standing as it grows.

Final Thoughts

Transferring money from abroad to your Indian company is not complicated — but it is regulated, and the compliance steps are mandatory. The FIRC, SWIFT transfer, FC-GPR filing, and FEMA rules are not bureaucratic obstacles — they are the framework that keeps your foreign investment legitimate, your cap table clean, and your company audit-ready.

If you have recently completed your online company registration process in India or are planning your india incorporation and want to ensure every inward remittance is handled correctly from day one — speak to Accorp Partners.

Looking to register a company in India? Visit our India Incorporation Services page for expert guidance.