To kick-off a business, to keep an existing business afloat, or to expand a business, investments are required. There are two ways in which a business can obtain funds- from within the country and borrowing from abroad.
Today, more businesses are looking at foreign investments instead of raising money from within the country because of the relatively higher rate of interests and the complicated guidelines. Foreign investors also, on the other hand are interested in investing in the country given its cheaper wages and subsidized rates. India is one of the most attractive destinations for foreign direct investment.
FDI India is a foreign direct investment facilitation industry. We strive to assist the country in its endeavour of a bright future by connecting Indian businesses with overseas investors. If you are an Indian form looking to get money from overseas, then look no further. You have landed at the right place. We thoroughly study your requirements are business profile and help connect you with the right investor for your business.
There is a thing called “right investor” because foreign direct investment comes with the notion of a lasting interest and to ensure this lasting interest, the foreign investors is given a minimum of 10 per cent voting rights in the company. Therefore, it is advisable to take up overseas investors who share your interests and future plans.
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
To invest in India, an investor must follow two routes:
- Automatic route: Under this route, no prior approval of authority is required by the foreign investor. 100% FDI is allowed. This slows the investor to invest in any company they wish to.
- Government route: A prior approval is needed in order to proceed with FDI under this route.