Funds are important for businesses, they are essential since they help keep business running and also help with expansion. If a business wishes to obtain funds, there are essentially two ways. A business can obtain funds from investors within the country and also take the other route which is borrowing overseas.
Foreign investment or overseas investments have become common amongst businesses to obtain funds. This is majorly due to the higher rate of interest and the guidelines that are complex. Foreign investors also readily invest in businesses they find profitable margins in. You might wonder what it is in this for the overseas investors. It is the fact that they get subsidized rates and also cheaper wages that attract them towards investing in Indian businesses.
FDI India, an FDI facilitator is available for your help when it comes to finding the right foreign direct invest option. We extend our help and assist businesses in their pursuit of a brighter future and better profits. If you are a firm based in India, looking for funding options from overseas, then look no further.
FDI India is available for your help, we study your basic needs thoroughly and also understand the overall business profile you trade in. After we have all the information we need, we connect you with the right investor for your business.
“Right Investor”, this is what essentially makes and breaks your business. Foreign Direct Investment comes with a lasting interest, for this a minimum of 10 percent voting rights are provided to foreign investors. Hence, do not get in business with someone you don’t share interest with. The future of your business lies in the hands of the current investments that you make.
Foreign Investment can be permitted by foreign exchange management regulations:
- Under the Companies Act 1956, the investment can be made in form of an individual entity integrated by the incorporation of a company.
- Joint Ventures
- Wholly owned subsidiaries.
- Project Office
- Liaison Office
- As an office of a foreign entity
To invest in India, an investor must follow the two route:
- Automatic route: Under this route, no earlier endorsement or approval of authority is required by the overseas investor. 100% FDI is permitted. This eases back the investor to invest into an organization they wish to.
- Government route: An earlier approval is required so as to continue with FDI under this route.