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FDI in INDIA |
FDI
Steps/Process of FDI: 1. Submission of proposal and uploading documents (mentioned below) on Foreign Investment Facilitation Portal. 2. Department of Industrial Policy and Promotion (DIPP) assigns the case to the concerned Ministrywithin 2 working days. a. Submission of physical copies to concerned department is not required in case of digitally signed documents.
b. For applications not digitally signed, online communication to applicant will be made to submit onesigned physical copy of the proposal to the Competent Authority. Applicants are required to submit required documents within 5 days of such intimation. 3. The proposal is circulated online within 2 days to Reserve Bank of India for review from FEMA. All proposals are shared with Ministry of External Affairs (MEA) and Department of Revenue (DoR) for record. Any advice/comments from above mentioned departments are directly shared with concerned Administrative Ministry/Department assigned to decide on the proposal. 4. Proposals are scrutinized within 1 week and additional information/clarifications, if required, areasked for. 5. On getting all required information, the Competent Authority is required to give out its decision in next two weeks. Approval/rejection letters are sent online to the applicant, consulted Ministries/Departments and DIPP. > Where total foreign equity inflow is more than Rs 5000 crore, the Competent Authority is required toplace the same to Cabinet Committee on Economic Affairs for consideration within timelines.
a. Certificate of Incorporation
b. Memorandum of Association (MOA)
c. Board Resolution d. Audited Financial Statement of Last Financial Year e. Article of Association 2. List of Names, addresses and identification proof of all foreign collaborators of the Investor Company/Entity. 3. Pre-and Post-investment shareholding pattern of the Investee Company. 4. An Affidavit stating that all information provided in hard copy and online is the same and correct. 5. In case of existing ventures, copy of joint venture agreement/shareholders' agreement/ technology transfer/trademark/brand assignment agreement (as applicable). 6. Copy of Downstream Intimation. 7. Copy of relevant past FIPB/SIA/RBI approvals, connected with the current proposal. 8. Relevant Foreign Inward Remittance Certificate (FIRC) in case investment has already flowed in. 9. High Court order in case of scheme of arrangement. 10. Valuation certificate as approved by a certified Chartered Accountant. Note-
I. Reserve Bank of India
II. Foreign Exchange Management Act III. Buyer from India who imports the goods and services from outside India IV. Seller from India who exports the goods and services to outside India V. Bankers / Financial Institutions VI. SEBI VII. Individual from India VIII. Licensed agent approved by Reserve Bank of India
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Thank You Complied and prepared by Pushkar Gaur Kotwani Anil Kumar & Associates (KAKA) Chartered Accountants A-73, Lajpat Nagar-2, New Delhi-110024 Disclaimer: Above article is true and complete to the best of our knowledge. It is our interpretation of law, others may take different opinion or view. |
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