A foreign company / non-resident entity can enter into India for expanding and undertaking its business to the Sector / Activities where the Foreign Direct Investment (FDI) is permitted. A non-resident entity can invest in India in almost all the sectors/activities except very few sectors/industries where FDI is prohibited. Depending upon its business needs, a foreign company can choose the appropriate legal business structure for setting up of its business in India.
The Government of India on yearly basis formulates a consolidated FDI Policy, with the intent and objective to promote FDI through a policy framework, which is transparent, predictable and simple and reduces regulatory burden.
Every business enterprise which accepts FDI or External Commercial Borrowings (ECB) has to comply with the guidelines and procedure prescribed under FEMA by the Reserve Bank of India. Reporting to RBI for FDI in India has been changed to Reporting in Single Master Form (“SMF”). Our team of professionals generally provides the following services under FEMA: