The FDI regime has been aggressively liberalized since year of 2000. The Government has removed most of the restrictions on foreign investment and to attract FDI the procedure has been simplified. In the present scenario the foreign nationals /foreign entities subject to a limited exceptions can invest in India either directly by way of setting up its own 100% subsidiary or subject to sectoral cap can establish joint venture in India.
Silent Features of Indian government’s foreign investment policies and incentives offered by it are as under:-
1.Subject to the activities as mentioned in the prohibited list, No government approval is required for FDI in all other activities/sectors.
2.The government has declared”Sector Specific Guidelines for FDI,” wherein investments up to specified sectoral caps are covered under the automatic route, with a few exceptions.
3. FIPB considers proposals for foreign participation that do not qualify for automatic approval.
4.Decisions on all foreign investment proposals are usually taken within 30 days of submitting an application.
5. Indian companies are permitted to raise funds from international capital markets.
6. Special investment and tax incentives are given for exports and sectors, Including power, Electronics, Software and food processing.
7. “Single window” clearance facilities and “investor escort services” are available in various states to simplify the approval process for new ventures.
8. Free repatriation of capital investment is permitted, provided the original investment (on a repatriable basis) was made in convertible foreign exchange. Further, Free repatriation of profits on capital investment is permitted, Subject to payment of taxes and other specified conditions.
9. Use of foreign brand names/trademarks is permitted for the sale of goods in India.
Paridhi Corporate Advisors can assist you in:
1. Making applications to Reserve Bank of India for purchase/sale/transfer of shares, Debentures & Securities and directly to and from Residents in India and outside India:
2. Allotment of Shares (including premium) to non residents.
3. Transfer of shares from Indian resident to non-residents.
4. Permission for opening Liaison office.
5. Permission for opening Branch office.
6. Setting up Joint Venture (JV).
7. Setting up Project Office.
8.Setting up Limited Liability Partnership/ Partnership by NRI’S or persons of Indian origin.
9. Other Advisory Services on FEMA/RBI.
10. Compounding of offences.
11. Filing of Annual Asset & liability statement.
12. To reply RBI on various queries raised under FEMA/ RBI Act, etc.
