How To Apply For FDI in India
India opened up the economy in 1991 and ever since then, the government has been introducing several reforms in foreign direct investment or FDI norms with the sole motive of attracting more and more investors to invest in domestic businesses.
Just recently, the government of India made reforms in FDI rules and regulations across different sectors including digital media, contract manufacturing, coal mining, and single brand retail trade. Investors have always been interested in the Indian market because of relatively cheaper work wages and tax exemptions.
A foreign investor can apply for foreign direct investment in India through two routes- the automatic route and the government o approval route.
Under the automatic route, the foreign investor(s) does not require a prior government approval in order to invest in India, whereas, under the government route, a prior approval from the government is mandatory.
While most sectors of the Indian economy are open for overseas investment, some sectors like defence, gambling and betting businesses, atomic energy, railways and likewise are privy to limited or no access by foreign investors.
There are three ways in which one can invest in an Indian business:
- One can gain voting rights by integrating a fully owned subsidiary or company anywhere
- By acquiring shares in an associated enterprise
- through a merger or an acquisition of an unrelated enterprise
- participating in an equity joint venture with another investor or enterprise
FDI is not just the transfer of monetary funds; it comes with a notion of direct control and is characterized by a lasting interest in the business. That is why when looking for a foreign investor, you need to establish common goals, interests and vision for the business.
Getting in touch with the right foreign investor for your business can become a difficult task and fetch you zero results. This is why it is advisable to get in touch with FDI facilitators and agencies like us.
We are connected to foreign investors from different countries and we will find a common ground for foreign investors and your business. Our job doesn’t end with just helping you meet the right investor for you. We will become your reliable advisors throughout the entire process of foreign direct investment.
We are just a phone call away. Get in touch with us to know more about what we do.