Since its liberalization in the early 1990s, India has emerged as a premier destination for Foreign Direct Investment (FDI), boasting one of the world's most rapidly expanding economies. The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce & Industry, plays a pivotal role in shaping India's FDI policy. While most sectors are open to 100% FDI via the automatic route, strategic sectors like retail maintain specific regulatory frameworks.
The Foreign Exchange Management Act, 1999 (FEMA) further regulates Foreign Direct Investment and rules & regulations framed thereunder, along with the notifications & circulars issued by the Reserve Bank of India from time to time. The FEMA regulations prescribe the various modes of investments, including the manners for receiving funds, issue of shares/convertible debentures and preference shares, while reporting these investments to the Reserve Bank of India (RBI).
Foreign entities seeking to set up their business in India can leverage several entry strategies:
- Liaison Office: For representing the parent company in India.
- Branch Office: Enabling activities such as export-import operations, research consultancy services etc.
- Project Office
- Indian Company (Joint Venture or Wholly Owned Subsidiary): Establishing a formal corporate entity for comprehensive business operations.
- Limited Liability Partnership (LLP): FDI permitted under automatic route in LLPs operating in sectors/activities where 100% FDI is allowed through automatic route, and there is no FDI linked performance condition.
We provide comprehensive guidance to foreign investors, ensuring a seamless and compliant entry into the Indian market.
Our services includes:
- Pre-Incorporation Consultancy: Strategic planning and optimal entity selection tailored to your business objectives.
- FDI Approval Assistance: Navigating the regulatory landscape and securing necessary approvals (if needed).
- Corporate Structure Optimization: Expert guidance on establishing Liaison Offices, Branch Offices, Joint Ventures, Wholly Owned Subsidiaries, Holding Companies, or acquiring existing entities based on the business requirements of the clients.
- Incorporation and Capital Structuring: Streamlining the incorporation process and advising on efficient capital structures.
- Essential Registrations: Facilitating registrations for PAN, TAN, GST, Importer-Exporter Code (IEC), and specialized licenses from authorities like the Drug Controller General of India (CDSCO) and the Food Safety and Standards Authority of India (FSSAI).
- Employment and Establishment Compliance: Securing registrations under relevant labour laws, including the Shops & Establishments Act, Employee State Insurance, Provident Fund, Municipal Corporation licenses, and Legal Metrology Act registration.
- RBI Compliance: Assisting with and filing inward remittance of FDI and the relevant returns with the Reserve Bank of India and ensuring other legal Compliances.
- Import-Export Advisory: Providing expert guidance on import and export regulations and procedures.
- Contract Drafting: Developing robust employment and commercial contracts to protect your business interests.
AT YOGI & PARTNERS, WE SPECIALIZE IN PROVIDING EXPERT GUIDANCE THROUGH THE COMPLEXITIES OF INDIAN MARKET ENTRY, ENSURING COMPLIANCE AND BUILDING A STRONG PLATFORM FOR YOUR BUSINESS GROWTH.