Thursday, January 9, 2020

Ways to determine as to How to Get Foreign Investors in India

  FocusFar       Thursday, January 9, 2020

fdi in india
FDI IN INDIA

The liberal trade policies that have been implemented by the government of our country has helped boost foreign investment in India and promoted it like never before. Foreign investment in India comprises of the investments that are made in India by the companies prevalent overseas. Foreign Direct Investment has also created numerous opportunities in our country by increasing employment and also improvising the infrastructure of the country- both of which are major pillars in the growth of a country.

Ways to Get FDI in India :

Though there are numerous ways that can be followed as to how to get foreign investors in India including:
  1. As an Indian company

An overseas firm can register as a private and public company under the Company’s Act 2013 and start working. However, for this, the company needs to be registered as a joint venture or a wholly owned subsidiary.
  • Joint Venture – A joint venture can be formed with the Indian firm with the partnership ratio of 51:49 where the maximum ratio is held by the Indian firm.
  • Wholly owned subsidiary – WOS can be opted in cases where a hundred percent FDI is allowed by the government.
For the companies to get themselves registered, an application needs to be filled and filed with the Registrar of Companies i.e., ROC. After the due diligence is completed by the company situated overseas, it becomes liable to adhere to all the laws that exist for the Indian company including labour law, PF, ESI, tax and the likes which need to be defined as per the Indian standards.
http://foreign-investment-in-india.aircus.com/

A foreign company can set up its office in India in one of the following ways-
  • By means of a liaison office – This office also known as a representative office forms a link between the head office and all its entities that exist in India.
  • By means of branch offices – The companies that are in the manufacturing and trading business can avail this option as it can help them to export and import goods, consultancy services, carrying out research work, promoting technical collaboration between the parent company as well as other companies in India, and provide IT services in India.
  • By means of project office – It is the best way for the companies if they want to carry out certain projects. These project offices are not allowed to carry out any other work apart from the projects that were specified at the time of establishment.
 

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