Foreign Direct Investment (FDI) Compliances

What is Foreign Direct Investment (FDI)?

Foreign Direct Investment (FDI) occurs when an individual or entity from one country invests in a business in another country, typically by acquiring a significant stake in a company. In India, FDI is regulated under the Foreign Exchange Management Act (FEMA) and monitored by the Reserve Bank of India (RBI).

We assist businesses in:

FDI Reporting & Regulatory Approvals

Foreign Direct Investment (FDI) in India is regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA), 1999. Businesses receiving FDI must comply with various reporting requirements and obtain necessary approvals.

Automatic Route vs. Government Route Advisory

FDI in India can be made through two routes:

(A) Automatic Route
  • No prior approval from the government is required.
  • The investment is subject to sectoral caps and FEMA regulations.
  • Example: Manufacturing, IT, and e-commerce (within prescribed limits).
(B) Government Route
  • Prior approval from the government is mandatory before investment.
  • The investment proposal is examined by the concerned ministry or department.
  • Example: Defense, telecom, media, and broadcasting sectors.
 
     
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