Browsing: FDI in India

FDI Foreign Direct Investment

FDI (Foreign Direct Investment)

Reading Time: 4 minutes For most of the sectors, the foreign direct investment (FDI) is allowed in the company as well as LLP in India, under automatic route of approval. When we say the automatic route of FDI, it means that the investment in the equity share capital of the company or as a contribution to an LLP is made without seeking any prior approval, however, after the incorporation of the company the share capital is to be remitted in the Bank Account of the company or LLP from the foreign bank of the investor/shareholder. After the remittance is made the Indian company or…

Reading Time: 1 minute The foreign investment by NRI in Indian Company is regulated by Master Direction – Foreign Investment in India issued by RBI and updated time to time. The last time it was updated on 8th March 2019. The Annexure 4 of the same is dedicated to investment by NRI in an Indian Company. Please refer to the attached pdf and go to page number 46. The important points for your consideration are as under That the investment by NRI in India company shall be treated as an investment at Par with other Indian investorsThe amount of consideration should be received from…

Reading Time: 6 minutes How to Register a Branch Office or Liaison Office in India The Indian government have a very open and transparent policy for setting up of a Branch office in India or a Liaison office of a foreign corporation. Through a general notification, the RBI has listed the permitted activities for which branch office (BO) or a Liaison Office (LO) can be opened under the automatic route. However, in case the proposed activities are not covered within the permitted list then the application for establishment of branch office or liaison office need to be made under the approval route directly to…

Reading Time: 1 minute 4 Activities are Permitted for a Liaison Office of a foreign company in India A liaison or representative office of a foreign company, a body corporate incorporated outside India, including a firm or other association of individuals are permitted to only following activities. To represent the parent or group companies in India To engage in activities which are in the nature or promotion of Import or Export To promote technical or financial collaborations between parent/group company or companies in India. To act as a channel of communication between the parent company and the Indian Company. The activities which can be…

Reading Time: 2 minutes 8 Activities are Permitted for a Branch Office of a Foreign Company in India A branch office of a foreign company, a body corporate incorporated outside India, including a firm or other association of individuals are permitted to do only the following activities. Check carefully if any of the proposed activities fall outside the below listed permitted activities. In case your proposed activity is out of the scope of the below items, we can help you to obtain specific permission from the RBI, which is also known as prior approval for opening of the branch office in India for the…

Reading Time: 3 minutes Change FDI Reforms The Government of India on 21 June, 2016 took a great step towards making India the most open economy in the world. Through this reform the government has allowed 100% Foreign Direct Investment (FDI) in food retail, pharmaceuticals, startups and 74% in private security agency. Earlier this week the decision was made by the government of India to make the country an attractive Foreign Direct Investment (FDI). This decision will be in effect immediately as stated by the Department Of Industrial Policy & Promotion (DIPP). Change FDI Reforms The policy now includes 100% Foreign Direct Investment (FDI)…

Reading Time: 2 minutes Brexit Blow: Tata Steel to Put its UK Assets Sale on Hold MUMBAI: Tata Steel to Put its UK Assets Sale on Hold – Tata Steel (BSE 0.54 %), India’s largest private steel maker is likely to defer the plan to sell its steel business in UK after the exit of Britain from European Union commonly termed as Brexit raised concerns of the viability of steel business. The same was stated by two people familiar with the development. Tata Steel to Put its UK Assets Sale on Hold “Brexit vote has added to the uncertainty of the sale process by…

Reading Time: 5 minutes Foreign Direct Investment in India Foreign direct investment india With strong fundamentals, robust economy, well laid institutional setup, geographical advantages and growing appetite for consumption especially that of middle class India is placed as a preferred destination for global environment. In a recent study of ernst and young in association of UNCTAD India has been placed within top 5 attractive destinations for investment. Whereas japan bank has rated as the top most country for overseas business environment. Having such a rating and preference the Government of India over a period of time has been able to put in place a…

Reading Time: 2 minutes Big relief NRIs tax norm eased can Now Avail Lower TDS Without PAN The tough times are over for non-resident entities as the Central Board of Direct Taxes (CBDT) has eased taxation norms for NRIs. The NRIs can take a sigh of relief now as CBDT has allowed them to avail lower withholding tax under Section 206AA of the Income-Tax Act where it will not be mandatory to provide Permanent Account Number (PAN). Big relief NRIs tax norm eased can now avail lower TDS without PAN CBDT has now notified rules clearly stating that provisions of section 206AA shall not…

Reading Time: 3 minutes Investment by an Indian Company in a Foreign Company Joint Ventures / Wholly Owned Subsidiaries which abroad promote economic co-operation between India and the host countries. This results in various benefits like transfer of technology and skills, access to global market, a building of the brand image, creation of employment opportunities and utilization of raw materials available in India and in the host country, import of goods and services, increased exports of plant and machinery, goods and services, also results in earning of foreign exchange, technical know-how fee, etc. Globalization has resulted in the removal of restrictions in trade, lead…

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