Foreign Direct Investment (FDI) & Compliances
Foreign Direct Investment is an investment effort of any foreign entity (Foreign Investors & Companies) towards a co-existing entity or a newly formed company in India or vice versa. As per the international FDI regulatory authority “Organisation for Economic Co-operation and Development (OECD)”, an investment made in any Indian company through an overseas channel above 10% is a Foreign Direct Investment (FDI).
In talks with a foreign national for investment?
Your entity needs affirmation with all FDI Compliances
For companies receiving FDI from abroad, adherence to FDI Policy, 2018 issued by the Department of Industrial Policy and Promotions (DIPP) is mandatory.
Professionals here working under CS-India.com as FDI consultants online provide you with handheld support overall all FDI compliance services.
Issue of FDI policy in India, bridges to fill the gap between saving and investment of resources. It is the most efficient way of bringing the required technology and ideology from foreign ventures. The FDI policy in India put up norms for receipt of FDI by Indian companies through the following routes:
- Automatic Route: In certain cases of FDI, where the attention of foreign nationals is a necessity, the Government of India provides relief to Indian companies to receive FDI from abroad without approval of Reserve Bank of India or Government of India (GOI).
- Approval Route: The approval route provides for FDI receipts in the country by Indian companies, by taking prior approval from certain government agencies – RBI (Reserve bank of India ), FIPB (Foreign Investment and Promotion Board), DEA (Department of Economic Affairs ), DIPP (Department of Industrial Promotion and Policy ), etc.
The current FDI policy permits all sectors entitles to receive FDI from abroad, excluding only a few entities engaged in lottery/gambling business, Chit funds, Nidhi Companies, Transferable development rights (TDRs), Real estate business and some other disapproved businesses by government agencies.
Foreign Direct Investment (FDI) can be made in any direction inward or outward. An Indian company might invest in any other country to set up its operations abroad or invest in better equity options in the foreign market; also it might get an inward pool of funds from any foreign investor. Both have certain FDI Compliances to be followed in India including :
- Registration under RBI guidelines for FDI Receipts.
- Filling FDI receipt returns to RBI.
- FDI reporting in Annual Returns
- Reporting for Issue of shares/securities to the investor.
- Following master directions of RBI for FDI.
- Private Placement Provisions
- FDI Conditions under Companies Act, 2013
- Secretarial Compliances
- Valuation & Investment Advisory
- Issue of Offers
- RBI Compliances
- Remittance flow reporting
- Annual Return Filling etc.
CS-India as a known alliance of FDI Consultants online which provides consultation on all related FDI Compliance Services applicable to Indian entities.
FDI Compliance on Indian Firms
FDI in India results in low-interest rates and tax breaks while investment made abroad reduces the country’s resources. For receiving foreign remittances as FDI, FDI Compliances are to be fulfilled by:
- All Companies registered under the Companies Act, 2013
- Limited Liability Partnership (LLP)
- Partnership Firms and ;
- Small Scale Entities.
CS-India is an eminent platform for hiring professionals for management advisory, business incorporation, RBI/FEMA compliances, etc. We working as versed FDI consultants online, ensure that you will receive a fair deal from us at all times for your business compliances and affordable pricing based on specific estimates after discussion and common understanding of your business requirements.
Why you should approach CS –India for FDI Consultants Online?
CS-India is a common domain for all business compliance services. Our in-house FDI Consultants online take care of all your FDI Compliances, ensuring you proper guidance on – foreign investment channels, responding foreign remittance queries, securities convertibility, responding FEMA/RBI authorities, filling company annual returns, amendments in capital structure, advising on project management and much more.
CS-India can help well-rounded businesses in :
- Company Formation and Legal Advisory
- Tax Planning
- Dispute / Insolvency Resolution
- Project Finance
- FEMA/FDI/RBI Compliances
- GST Compliances
- Management of Private equity
- And other legal services in India.
Get the best proposal for FDI compliances
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Also Read: Foreign Exchange Management Act & Compliances