Foreign Direct Investments
The process of regulation and approval for the FDI in India has been considerably liberalized since the 1990s’. India’s foreign trade policy has been formulated with a view of encouraging the FDI in India by the foreign Investors. The Reserve Bank of India has prescribed the administrative and compliance aspects of FDI.
G K Sureka & Co. offers comprehensive services and consultancy to foreign investors in facilitating the Foreign Direct Investment (FDI) in almost all sectors. We help them and guide on the issue of holding minority or majority stake in most of the sectors, be it manufacturing, telecom, software, services sector, trading, export-import to name a few.
Our services broadly cover the following areas in Foreign Investment Services to our clients:
Foreign investors/Companies in India have following entry options to do business in India:
The liaison office acts as a communication channel between the parent company incorporated abroad and its present or prospective customers in India.
A branch office is meant to carry on substantially the same activities as the head office.
Wholly owned Subsidiary Company
A wholly-owned subsidiary is the 100% Owned subsidiary of the foreign company in India.
Foreign companies involved in the execution of turnkey projects on pan India basis can set up temporary project/site offices in India. RBI has granted general permission to foreign entities to establish project offices in India subject to specified conditions. Such offices cannot undertake or carry on any other activity, relating and incidental to execution of the project. Project Offices may remit outside India the surplus of the project on its completion, general permission for which has been granted by the RBI.
Joint Venture With An Indian Partner
Foreign companies have to forge strategic alliances with Indian partners either due to FDI limitations or lack of specified competencies and experience in the domestic market. Apart from these there are certain advantages of Joint Venture for foreign investors like:
- Established distribution/ marketing set up of the Indian partner which helps in smoothening the process of setting up of operations.
- Readily available access financial resource of the Indian partners.
FDI Investment can be made in India under two broad categories under the automatic route and investment through prior approval of Government.
Investment by way of Share Acquisition
A foreign investing company is entitled to acquire the shares of an Indian company without obtaining any prior permission of the FIPB subject to prescribed parameters/ guidelines. If the acquisition of shares directly or indirectly results in the acquisition of a company listed on the stock exchange, it would require the approval of the Security Exchange Board of India.
There are various investment opportunities, which are available to Non-Resident Indian (NRI), Person of Indian Origin (PIO) or Overseas Corporate Bodies (OCBs). We, at G K Sureka & Co., provide consultancy services with individuals on how to take advantage of the schemes promoted by the Reserve Bank of India and the Department of Industrial Promotion and Policy. We also guide our NRI/PIO/OCB clients in getting their incomes and properties assessed accurately and in a simplified manner for tax liability purposes.
Some of the facilities granted to NRIs/PIOs/OCBs are :
- Maintenance of bank accounts in India.
- Investment in securities/shares of, and deposits with Indian firms/ companies.
- Investments in immovable properties in India.