Solutions to your immediate queries relating to business and investment activities in India. For more information, please visit the Ministry of Commerce and Industry and Federation of Indian Exports Organisation.
Foreign companies who plan to set up business in India can choose to start:
For more information see Entry Strategies For Foreign Investors and Reserve Bank Of India
Yes, a foreign company incorporated under the Companies Act, 2013 is treated on par with any domestic Indian company, within the scope of approval and subject to all Indian laws.
A Foreign company can invest in India through the following routes:
For more information see the Department for Promotion of Industry and Internal Trade
The Foreign Investment Facilitation Portal (FIFP) is the new online single point interface of the Government of India for investors to facilitate Foreign Direct Investment (FDI). This portal, which is being administered by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, will continue to facilitate the single window clearance of applications through the approval route. Upon receipt of the FDI application, the concerned Administrative Ministry/Department shall process the application as per the Standard Operation Procedure (SOP). For more information see Foreign Investment Facilitation Portal.
The Government attaches importance to investments by NRIs and Overseas Corporate Bodies (OCBs) i.e. corporate bodies in which NRIs hold at least 60 per cent of the equity. The government has provided a liberalised policy framework for approval of NRI investments through both the Automatic and the Government route. NRI/OCBs are permitted to invest up to 100 per cent equity in the Real Estate and Civil Aviation Sectors. Automatic Approval is given by the RBI to all NRI/OCB proposals with their investment up to 100 per cent for all items/activities except a few exceptions mentioned in Press Note 2 (2000 series) read with sector-specific guidelines. Government approval is given for all proposals not qualifying for Automatic Approval.
All profits, dividends, royalty, knowhow payments approved by the Government/RBI can be repatriated. Some sectors like NRI Investment in real estate may attract a lock-in period.
The issue of shares to the foreign collaborator is governed by the guidelines issued by RBI /SEBI and Companies Act.
Approval is granted by two routes:
Yes, it is possible to use foreign brand names/trademarks in India. However, payment of lump sum fee is not permissible, only running royalty payment is permissible as per the prescribed rate.
Changes in FDI policies are announced in the form of Press Notes by the Department for Promotion of Industry and Internal Trade (DPIIT). Soon after releasing the Press Notes to the media, it is also uploaded on the Departmental website.
More – SEBI (Foreign Institutional Investors) Regulations; Investment in Indian Companies by FIIs/NRIs/PIOs
In order to register a company in India, foreign nationals are required to submit a copy of their passport along with address proof (Driver’s License, Bank Statement, etc.). The copy of the original documents should be notarized by a Notary in the home country or by the Indian Embassy in the respective country where the foreign Director belongs.
In case a corporate entity is aiming to become a shareholder in an Indian Company then the foreign company’s board should pass a resolution and authorise the investment in the Indian Company. The Board Resolution decided upon mutually among the Directors should be attached with a notarized copy of the incorporation certificate of the foreign company.
The presence of any of the foreign Directors is not mandatorily required at the time of incorporation in India. Thus, foreign nationals have the flexibility of establishing and operating a business in India without even traveling to India. For more information see the Ministry of Corporate Affairs.
Any foreign company can establish its place of business in India by filing eForm FC-1 (Information to be filed by a foreign company).
Note: The e-Form needs to be digitally signed by an authorized representative of the foreign company. There is no need to apply and obtain DIN for Directors of a foreign company. However, it is mandatory to register the DSC of the authorized representative of the foreign company via associate DSC service available at the MCA portal.
For more information see Company Incorporation.