SMF-FIRMS : A new system for online reporting application introduced by RBI
RBI has introduced an online reporting portal for reporting of foreign investments made in India which is called FIRMS.
Q.1 : What is the basic reason behind the introduction of this portal?
Ans : To compile and ease the procedure of various existing reports made in regards to different types of foreign investments in India at one place, in a simple structured manner (i.e., SMF-Single Master Form).
Q.2 : Earlier, On which portal reporting in regards to foreign investments was made?
Ans : EBIZ, on this platform, earlier we have to upload/report various types of reporting forms separately at different places (i.e., ARF, FC-GPR, FC-TRS, LLP-I etc.) which made the reporting structure more complex and time consuming.
Q.3 : What is the description of FIRMS?
Ans : > FIRMS stands for Foreign Investment Reporting and Management System.
> An online reporting platform for reporting of foreign investment in India.
> It emerges a new concept which is SMF (Single Master Form)
> It provides a one stop shop (different types of reporting forms available at one place).
> It provides 24*7 online reporting facilities.
> Its main object is integrating the extant reporting structures of various types of foreign investment in India.
> User can access one common platform for all reporting.
Q.4 : What is the feature of SMF?
Ans : > SMF stands for Single Master Form.
> It was introduced by the RBI in the second phase.
> After implementation of this, ARF has been discontinued.
> It merged the 9 extant reporting forms for foreign investment in one master form.
> Following are the 9 forms which are available in this master form :
Q.5 : What is the feature of EMF?
Ans : > EMF stands for Entity Master Form.
> It was introduced by the RBI in the first phase.
> It provides a platform to the Indian entities, for reporting the details in regards to the existing total foreign investment.
> It was available on the portal from June 28, 2018 to July 20, 2018.
NOTE : For those companies which could not register within the stipulated time period may register for the entity master with effect from September 01, 2018.
Q.6 : What is the first step to avail the facility of this online reporting portal?
Ans : > First of all, users have to register themselves on this portal by filing Registration form on https://firms.rbi.org.in/firms/
> Two types of registration form available to the user :
(i) Registration form for New Business User.
(ii) Registration form for New Entity User.
> After getting the registration under Entity User, the Entity has to get register itself under Business User.
Q.7 : What is the link of User Manual for registration on the FIRMS portal?
Where user can check the whole procedure for registration.
Q.8 : Who is the Entity User?
Ans : > An Entity User is a person authorized by the entity. (Entity may be any Company/LLP/Statrup)
> Its role is to register an entity in the Entry Master of FIRMS Application.
> It would be the Sole Person.
> It is authorized to add as well as update the foreign investment details of the Entity.
> 1 person may become entity user for more than 1 entity. For this, entity user has to obtain separate registration.
Q.9 : Who is the Business User (BU)?
Ans : > It is the person who was authorized by the entity.
> It is the Return Filer.
> Its role is to report the transactions in SMF at FIRMS.
> 1 person may become BU for more than 1 entity after taking separate registration.
The RBI has introduced 2 phases for making required reporting under the New System :
(1.) ENTITY MASTER FORM (EMF) through ENTITY USER (Phase 1: 28.06.2018 to 12.07.2018)
(2.) SINGLE MASTER FORM (SMF) through BUSINESS USER (Phase 2: With effective from 01.09.2018)
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