Under Foreign Direct Investment (FDI), overseas money, either by an individual or entity, is invested in an Indian company. According to Organization for Economic Co-operation and Development (OECD), an investment of 10% or above from overseas is considered as FDI. In India, FDI policy is regulated under the Foreign Exchange Management Act, 2000 governed by the Reserve Bank of India.
One can invest in India either through Automatic Route which does not require approval from RBI or through Government Route, which requires prior approval from the concerned Ministries or Departments via a single window that is Foreign Investment Facilitation Portal (FIFP) administered by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry, Government of India.
If there is a doubt over which Ministry should the investment application fall under, DIPP helps identify the concerned authority. Proposals from NRIs are also handled by DIPP.
Various categories of foreign investors such as Foreign Portfolio Investors, Foreign Institutional Investors, Foreign Venture Capital Investor, Non-Resident Indians can hold stakes in Indian business entities subject to conditions and sectoral caps on ownerships.
The benefits of taking action in foreign investment issues are:
What is Foreign Direct Investment?
Under Foreign Direct Investment (FDI), overseas money, either by an individual or entity, is invested in an Indian company.
What are the two routes through which overseas investment can be made in India?
The two routes through which investment can be made in India is Automatic Route and Government Route.
FDI is regulated under which Act?
FDI policy is regulated under the Foreign Exchange Management Act, 2000 governed by the Reserve Bank of India.
How long does Sabkuch Legal take to deal with foreign investment issue?
We try our best to complete your task in 2 business days.