In its most generic definition, Foreign Direct Investment is an investment in one country by an entity based in another country. Merely putting money into the assets of another country does not constitute FDI. Foreign direct investment is characterized by direct control and lasting interest. The intent to actively participate in the day to day operations of the business is what distinguishes it from foreign portfolio investment. Therefore, it is safe to say that FDI does not only bring in money but also skills, knowledge and technology; elements essential for the holistic development of a country.
The Indian government has over the years taken several measures to ease foreign direct investment policies in order to facilitate more overseas equity inflows into the country. Recently, several reforms in FDI norms were introduced across sectors such as digital media, single brand retail trade, contract manufacturing, and coal mining.
India is truly the land of opportunities; foreign investors are looking to invest in the country to take advantage of lower wages and easier rules and regulations. However, finding the right investor for your business opportunity in India can be a difficult process. Procuring foreign funds for your business is not to be taken lightly. You would want trust-worthy investors to invest in your domestic business. This is where we come in.
We facilitate foreign direct investment in India by connecting overseas investors with domestic business opportunities in India. We put you through the right investor for your business. Our work, however, does not end with just this; we guide you through the entire procedure of FDI.
Now, the foreign direct investment rules and regulations can be overwhelming and even confusing to begin with. We simplify the ins and outs of FDI in India for you and help make you informed decisions.
If you are an Indian company looking for investment in your business, have a look at the below outlined ways in which you can get funding through FDI.
Foreign investment in an Indian company can be done in the following ways, permitted by the Foreign Exchange Management Regulations:
- As an integrated entity by incorporating a company under the Companies Act, 1956 through
- Joint ventures; or
- Wholly owned subsidiaries
- As an office of a foreign entity through
- Liaison Office / Representative Office
- Project Office
- Branch Office