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FDI IN INDIA

The capital investment in India from a foreigner or a foreign entity is restricted and is governed by the provisions of the Foreign Exchange Management Act (FEMA). Every year central government through RBI comes up with a consolidated FDI policy, also known as Master Circular on FDI

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Foreign Direct Investment in India

The inflow of foreign exchange to be invested as capital in the business is known as foreign direct investment. The FDI is not permissible in proprietorship and partnership business, However recently government have notified rules whereby the FDI is allowed in LLP under the approval route. The foreign investment in companies is the easiest from a compliance point of view. Most of the sectors are open for 100% FDI where no prior approval is necessary, however, post the investment made in India a formal reporting is needed. We are known for quality advisory on FDI matters in India, and with proper documentation in place, a company with FDI can be incorporated within a week time. We are presenting key aspects of FDI for easy understanding, for any query kindly reach us.

Key Regulations Concerning FDI

01
Foreign Exchange Management Act, 1999 (FEMA)
02
Securities and Exchange Board of India Act, 1992
03
Foreign Trade (Development and Regulation) Act, 1992.
04
Foreign Trade (Development and Regulation) Act, 1992.
5
Foreign Direct Investment Policy (FDI Policy)
6
Competition Act, 2002

KEY GOVERNMENTAL AUTHORITIES

01
Department of Industrial Policy and Promotion (DIPP)
02
Foreign Investment Promotion Board of India (FIPB)
03
Reserve Bank of India (RBI)
04
Securities and Exchange Board of India (SEBI)
05
Directorate General of Foreign Trade (DGFT)
06
Ministry of Corporate Affairs
07
Industry-specific ministries such as Ministry of Power, Ministry of Communications & Information Technology

Prohibited Sectors for FDI

01
Lottery Business including Government /private lottery, online lotteries, etc.
02
Gambling and Betting including casinos etc.
03
Chit funds/ Nidhi company
04
Trading in Transferable Development Rights (TDRs)
05
Real Estate Business or Construction of Farm Houses
06
Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes
07
Activities / sectors not open to private sector investment e.g. Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems).