FEMA And RBI Advisory

Foreign Direct Investment (FDI) The amount/capital to be invested by any foreign national/NRI shall be classified as FDI in India. In 1990s, there was high number of restrictions on FDI in India where as today, there are amendments in all the rules and regulations of company formation in India. FDI is classified as

  • Business where FDI is not allowed at all.
  • Business sectors where permission is required from Foreign Investment Promotion Board(FIBP)
  • Business where no permission required.

All foreign nationals/ NRI’s must go through FDI policy before company incorporation in India in order to check any restrictions, prohibition in the proposed business activity Entry Strategy into Indian Market A foreign company can commence operations in India by incorporating a company under the companies Act, 2013 through registration of company or establishing a branch or liaison office. Establishing a private limited company is the easiest and fastest way to set up in India. FDI of up to 100% into a public limited or private limited is permitted under the FDI policy wherein no approval from RBI or central government is required. Other entry strategy as a foreign company is to open a branch office, liaison office and Project Office. In this case, approval from RBI or central government is mandatory. Therefore, the time and money required for setting up a private limited or public limited company is much less than forming such offices. Requirements for incorporation of company in India In order to start a company in India, a minimum of two persons and an address are required in India. A company must have a minimum of two directors and a minimum of two shareholders. According to Indian rules and regulations, one director must be both an Indian citizen and Indian resident. In this case, 100% of the shares of the Indian company can be held by foreign nationals/ NRI. The address in India is served as the registered office of the company.

  • Regulatory approvals including Foreign Investment Promotion Board (FIPB), Reserve bank of India (RBI), Secretariat of Industrial Approval (SIA), ROC and other concerned authorities.
  • Setting up of Joint Ventures, Partnership, and Subsidiaries.
  • Assisting in preparation of regular compliances
  • Filing with Reserve Bank of India
  • Maintain a check on compliance (FDI, ODI, Export, Import etc.)
  • Obtaining FIPB approval for FDI
  • Half Yearly Exchange Audit
  • Requirements and compliances under FEMA for making investments Outside India (Overseas Investments)
  • Procedure & compliances for investments made by Foreign Enterprises, Foreign Residents in India under FEMA
  • Foreign Direct investments (FDI) and External Commercial Borrowings (ECB)
  • Compounding of offences under FEMA
  • Allotment/ Transfer of shares to non residents
  • Issue of Statutory Certificates under FEMA & RBI regulation.
  • Certification of Form FC – GPR, TCR, TCK& TDS for remittances of foreign exchange and other certifications under FEMA, 1999 and various rules and regulations made there under
  • Procedure and compliances for Investment in Real Estate Sector through FDI and investment by NRI/ PIO in Real Estate Sector
  • Implications of Transfer pricing law and Double Taxation Agreements(DTA)
  • Obtaining Import – Export Code ( IE3C ) from DGFT
  • Regular Updation on Foreign Exchange Laws
  • Advisory service on FEMA transactions/RBI etc.

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