Business Master Creation is the initial step for compliance with the Reserve Bank of India’s (RBI) reporting requirements under the Foreign Exchange Management Act (FEMA). It involves registering an Indian entity’s details in the FIRMS (Foreign Investment Reporting and Management System) portal.

Here’s a step-by-step guide to creating a Business Master:

What is Business Master Creation?

The Business Master is a comprehensive registration of an Indian entity that has received or will receive foreign investment. It serves as a prerequisite for reporting transactions such as allotment of shares (Form FC-GPR) or transfer of shares (Form FC-TRS) in the FIRMS portal.

Who Needs to Create a Business Master?

Indian companies that:

1. Have foreign investment in equity, preference shares, or convertible instruments.
2. Intend to report foreign investment transactions in compliance with FEMA.

Steps to Create a Business Master

Step 1: Gather Required Information

Ensure you have the following details:

1. CIN (Corporate Identification Number): For companies registered in India.
2. PAN: Permanent Account Number of the entity.
3. Entity Name and Address.
4. Contact Details:
   • Name, email ID, and mobile number of the authorized person.
5. Foreign Investment Details:
   • Total foreign investment received.
   • Names of the foreign investors and their shareholding percentage.

Step 2: Register on FIRMS Portal

1. Visit the FIRMS portal: https://firms.rbi.org.in.
2. Click on “Registration of Entity (Business User)”.
3. Fill in the details of the Business User:
   • Name of the entity.
   • PAN of the entity.
   • Name, designation, email, and mobile number of the authorized person.
4. Upload Authorization Letter:
   • Draft and upload a letter (on the company’s letterhead) authorizing the Business User to register on the portal.
   • The letter should be signed by an authorized signatory.

Step 3: Login Credentials

• Once the registration is processed, the login credentials (username and password) will be sent to the authorized person’s email ID.

Step 4: Access the Business Master Form

1. Log in to the FIRMS portal using the received credentials.
2. Navigate to the Entity Master section.
3. Fill in the required details about the business:
   • Entity type (company, LLP, etc.).
   • CIN or LLPIN.
   • PAN, address, and other contact details.
   • Details of foreign investment received (if any).

Step 5: Verify and Submit

1. Review the information provided.
2. Submit the Business Master details.

Key Points to Remember

1. Mandatory for Reporting:
   • Business Master registration is mandatory before filing any foreign investment-related forms like FC-GPR or FC-TRS.
2. Accuracy:
   • Ensure all details, especially foreign investment and investor details, are accurate.
3. Authorization Letter:
   • Format and content of the authorization letter should strictly comply with RBI’s guidelines.

After Business Master Creation

• Once approved, you can file forms like FC-GPR, FC-TRS, or other reports for compliance with FEMA.
• The Business Master must be updated if there are changes in the foreign investment details or entity’s structure.

Would you like assistance with drafting the authorization letter, navigating the FIRMS portal, or completing your Business Master registration?