Foreign Investments
Entry Options for Foreign Investors
A foreign company that is planning to set up business operations in India has the following few options:
Branch Office
Liaison/ Representative Office
Project Office
Company Formation though a Joint Venture or a wholly owned subsidiary.
Routes for Foreign investment
Automatic Route 100% Foreign Direct Investment (FDI) is allowed under the automatic route in all the activities/ sectors without the approval of the Government of India (GOI), except the following:
Those activities or items that require an Industrial License
A proposal in which the foreign collaborator is already having a venture or tie-up in the country in the same field.
In some cases, a proposal for acquisition of shares in an existing Indian company.
Government Approval Route all the activities that does not come under the automatic route and require prior Government approval. The areas/ sectors/ activities hitherto not open to FDI/ NRI investment shall continue to be so unless it is otherwise notified by the Government of India (GOI).
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