For a country like India, where there is no ready capital source of investment, it is important that businesses indulge in FDI. Under FDI, the overseas money obtained from outside of India is invested in the best way possible in a lucrative project.
Automatic Route is the one that you must follow, it is the one that doesn’t require any approval from RBI. You can also opt for Government route, which also doesn’t need any approval procedure. FDI India, a facilitation portal helps people acquire the best foreign direct investors with the right procedure. FDI India can help people find the right investor for their business project. The right investor will not only invest capital in your business but also bring with it technology, skills, and latest technological updates.
To bring foreign investors first check the sectors or activities where the approval of a government body is mandatory. Proposals from NRI and Export Oriented Units as well as the application related to the equity issues are handled by DIPP. Monthly reviews are carried out by the concerned authorities and ministries. DIPP also proposed that the proposals pending must be taken by the government body.
Approval Process of FDI Investment:
- Submission of proposal with the needed documents and uploading the documents on FDI India, FDI facilitation portal.
- DIPP assigns the case to the concerned government department within approximately 2 working days.
- For digitally signed documents it is not mandatory to submit physical copied of documents.
- Online communication with the applicant is made possible for applications not digitally signed. The applicant must send one signed physical copy of the proposal to the Competent Authority. Within 5 days of such intimation applicants must submit the required document.
- The proposal is then circulated online in about 2 days to RBI for review from FEMA perspective. All the proposals made with MEA and DoR for record. Any advice or comment the above mentioned departments are the ones to be directly communicated with the Department assigned.
- Proposals made are then scrutinized within a week and also additional information and clarifications.
- On getting all required information the competent authority gives out the decision in two weeks’ time.
- Approval or rejection letters are sent online for the convenience of applicants.
This is the process of getting approval for an FDI. To get help with this, you can definitely reach out to FDI India, the FDI facilitators helping businesses who wish to get some foreign investment for their business.