Documents Required For FDI Approval in India
FDI or foreign direct investment occurs when a foreign entity (individual or firm) invests in a business that is based in another country. Now, FDI does not simply mean the transfer of monetary funds from one country to another; it is characterized by the notion of lasting interest.
This lasting interest in a business that is situated in another country is ensured when the foreign investor is given a minimum of 10 per cent voting rights in the company. In this way, foreign direct investment is differentiated from foreign portfolio investment.
There are two ways in which a foreign investor can invest in the country- the automatic route and the government route. While a prior permission is mandatory from the government of India and the concerned ministries in the case of government route, no such approval is required under the automatic route.
Getting FDI for business in India can seem to be a complicated task. This is why, we as experts suggest you to consult an FDI facilitating agency of your choice to smoothen out the entire process. Some of the documents that are required by the government for a foreign direct investment approval are as follows- (However, not that other documents may be required based on your specific business module).
- List of Names, addresses and identification proof of all foreign collaborators of the Investor Company/Entity.
- From both Investee & Investor Companies/Entities:
- Certificate of Incorporation
- Memorandum of Association (MOA)
- Board Resolution
- Audited Financial Statement of Last Financial Year
- Article of Association
- Pre-and Post-investment shareholding pattern of the Investee Company.
- In case of existing ventures, copy of joint venture agreement/shareholders’ agreement/ technology transfer/trademark/brand assignment agreement (as applicable).
- An Affidavit stating that all information provided in hard copy and online is the same and correct.
- Copy of Downstream Intimation.
- Copy of relevant past FIPB/SIA/RBI approvals, connected with the current proposal.
- Relevant Foreign Inward Remittance Certificate (FIRC) in case investment has already flowed in.
- High Court order in case of scheme of arrangement.
- Valuation certificate as approved by a certified Chartered Accountant.