FEMA & FDI

Advisory, Consultancy and documentation for obtaining FDI with or without approval route and ensuring compliance of intimation and submission to the RBI including obtaining of approvals from the FIBP as per requirement of law & clients.

1. Setting up of Wholly Owned Subsidiary
   Foreign companies can set up wholly owned subsidiary companies in India in form of private companies subject to FDI guidelines. A wholly owned or a subsidiary company has the maximum flexibility to conduct business in India when compared with a liaison or branch office.
2. FIPB
   FDI in India is allowed via automatic route and the approval route through FIPB. The Foreign Investment Promotion Board (FIPB) is a national agency of Government of India, which considers and recommends Foreign Direct Investment (FDI) which does not come under the automatic approval by the Reserve Bank of India (RBI). It provides a single window clearance for proposals on FDI in India.
3. Overseas Direct Investment (ODI)
   Investment outside the boundaries of the Country in a joint venture or wholly owned subsidiaries by way of Contribution to capital, Subscription to Memorandum of foreign entity and Acquisition of shares by way of market purchase, private placement or through stock exchange is termed as Overseas Direct Investment (ODI).
4. External Commercial Borrowing (ECB)
   ECBs are commercial loans raised by eligible resident entities from recognized non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The parameters apply in totality and not on a standalone basis.

   The framework for raising loans through ECB comprises the following 3 tracks:

   Track I: Medium term foreign currency denominated ECB with minimum average maturity of 3/5 years.
   Track II: Long term foreign currency denominated ECB with minimum average maturity of 10 years.
   Track III: Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years.

   ECB can be raised under 2 routes:

   1. Automatic Route
   2. Approval Route