A foreign investor looking to invest in India should know that, as per the rules, foreign investors can only do so if they have invested in at least two entities that are wholly owned by the Indian government.
The Indian government has put a cap of 20% on foreign investment in India’s capital markets, which is a restriction that has been put in place to discourage foreign investment.
It also prohibits foreign investors from investing in companies that do not have a formal license or have a license to trade, which includes private equity funds and venture capital funds.
In other words, foreign capital is prohibited from investing any part of the Indian economy that does not belong to the government or its agencies.
The cap is also meant to protect the financial sector, as well as the environment, which would also be affected by any foreign investor that goes into India.
In case you are a foreigner looking to make a big splash in India, the process to apply for a license for an Indian company is very different.
The process involves a number of steps.
The first step is the application form.
This will ask for the company’s name, address, corporate name and business name, among other details.
The form will then ask the applicant to upload photographs of the company.
It is important that the applicant upload photos of the actual premises, including the offices, of the companies.
This is so that the Indian authorities can identify the location of the real premises and identify the owner of the assets.
The applicant must also include a copy of a deed of sale or other document, showing ownership of the business.
The final step is for the Indian officials to approve the application.
The approval can be given in person, via the online portal or through the Indian Ministry of Corporate Affairs and Industry.
The applicant has two weeks to submit his/her application, which will be forwarded to the Ministry of Finance, which has two months to review the application, if it is approved.
If it is not, the applicant will be required to make another application.
Once the Ministry approves the application of a foreign company, it will be sent to the Indian Foreign Investors Registration Authority, or FRA.
Once the application is approved, the FRA will forward the application to the Minister of State for Finance, who will send it on to the State Bank of India, which then passes the information to the Department of Industrial Policy and Promotion.
The Department of Commerce, Industry and Entrepreneurship, which manages the Foreign Investment Promotion Board, will then review the applications.
Once all the approvals are in place, the application will be registered in the Indian Companies Registration Office (ICAO).
After that, it is sent to an officer who will make sure that the company is registered.
The officer will also check if the company has sufficient capital to be registered.
If there is a problem with the company, the Indian Government will have to take legal action.
If there is not enough capital, the company will be forced to go bankrupt, which may lead to losses.
The FRA also has other powers.
It can request the Foreign Investor Registration Authority to issue a letter of intent, which can be used to secure a foreign investor’s right to buy shares in the company in India.
The FRA has the power to make the sale of shares conditional on the company being approved by the Government.
If the FMA decides to approve a company, there will be a written offer letter, which must be approved by an officer of the FFA.
Once approved, an offer letter will be signed by the investor and sent to him or her by the FSA.
The offer letter must state that the offer is for an indefinite period of time, and the company must be registered by the end of that period.
After that period, the offer letter can be withdrawn.
If an offer is not accepted, the investor can then take legal recourse through the FAMA.
FAMA has three types of recourse:If the offer does not meet the conditions set out in the offer, the case can be referred to the FHA.
The case will be heard by the Supreme Court of India.
If the court decides in favour of the investor, the investment company can then apply to the High Court of Justice for judicial review of the decision.
The investor is then required to pay the amount due from the FDA.
If that does, the High Courts of India and the Supreme Courts of the State of Maharashtra will hear the case.
If, after hearing the case, the court upholds the investor’s decision to sell the shares, the order can be enforced by the state or the FICA, the Registrar of Companies of India (ROCAI), which is responsible for the management of foreign investment, or the Ministry, which decides whether to make any action against the company or the investor.
There are other hurdles that the foreign investor has to overcome in order to make his/ her move.
Foreign companies are required to register with the Indian Registry of Companies, which the company can access by going