Other than the above sectors in which FDI is expressly prohibited, FDI up to 100% is allowed in most sectors/activities under the automatic route. In sectors where investment upto 100% is not permitted, the permitted level of investment and the conditions applicable, if any, have been prescribed. For investment above such levels, prior approval of the FIPB is required to be obtained.
Therefore, for foreign investments into India, the following two modes of approval mechanism has been provided:
Automatic Approval Route: FDI in sectors or activities to the extent permitted under automatic route does not require any prior approval either by Government of India or Reserve Bank of India (RBI). The investors are only required to notify the regional office concerned of RBI and file the required documents with that office within 30 days of issue of shares to foreign investors.
Foreign Investment Promotion Board (FIPB) Approval Route: FDI in activities not covered under the automatic approval route requires prior Government approval and are considered by the FIPB. The FIPB considers and approves proposals for foreign investment on a case to case basis. Application can be made in Form FC-IL. Plain paper applications carrying all relevant details are also accepted. read more....
Company Registration in India |
Company Registration Procedure |
FDI Policy
