India with its consistent progression and adequate profoundly skilled manpower delivers outstanding

prospects for investments. India is the most populous democracy and tenth most significant
economy in the world. India is the 4th most extensive economy all over the world when it comes to
purchasing power parity. India features a federal system of Government with distinct demarcation of
powers between the Central Government and the State Governments.
India allows a liberal, captivating, and trader friendly investment environment. India is straining on
encouraging foreign investment. India posses most liberal and transparent policies on foreign direct
investment (FDI) among major economies around the globe. 100% FDI is acceptable under the selfregulating approach in all sectors/activities apart from few areas, which demands prior authorization
of the Government. Under self-regulating, investors are required to only notify the Reserve Bank of
India within 30 days of receipt of inward remittances.
India has liberalized and articulated foreign exchange controls. Rupee is readily convertible on
current accounts. For FDI- Profits earned, dividends and proceeds out of the sale of investments are
fully repatriable.
India incorporates a giant socio-economic class and 55% of its population is below the age of
25.High economic growth and escalating per capita income has resulted into higher growth in the
national market, which is the prime growth engine for Indian marketplace.
Government of India highly emphasizes on the development of infrastructure in highways, ports,
railways, airports, power, telecom, etc. Government is constantly looking for domestic and foreign
private investment, for infrastructure sector development.
General Information
India's weekend is Saturday and Sunday. Banks are open from 10 am 4 pm though several
branches are open till afternoon on Saturdays. ATM are available everywhere in the country, in
hotels, market places and shopping malls.
Transport
India has state taxi service. Metropolitan cities have intercity Bus services also.
Accommodation

Indias scenic tourist places attract large no. of people from the world. India generates high revenue
from its tourism, visited by globe-spanning business people and tourists; India is well serviced with
world-class hotels. For more info visit: http://tourism.gov.in/ and www.incredibleindia.org
Investment Opportunities in India
India provides great avenues for investments in various sectors.

Automobile

Biotechnology

Cement

Chemicals

Civil Aviation

Defence

Education

Food processing

Gems & Jewelry

Healthcare

Heavy Industry

IT & ITeS

Media & Entertainment

Mining Oil & Gas

Pharmaceuticals

Ports

Power

Retailing

Roads & Highways

SEZs

Steel

Telecommunications

Textiles

Tourism and Hospitality

NRIs in India
The government acknowledges the significant role that the massive Indians residing and working in
foreign lands, the Non-Resident Indians can play in reinforcing the velocity of growth in the country.
The NRIs are allowed 100% investment in 34 important and infrastructure amenities on non-

repatriation basis. Acceptance is given automatically on investment in certain specialized

collaborations. They can buy Indian Development Bonds and get hold of or transfer any acreage in
India without waiting for government approval. The Foreign Exchange Regulation Act has been
amended to permit NRIs to deal in foreign exchange and they can also bring in five kg of gold. There
are programs to utilize the scientific and technical skills of the NRIs together with the Council of
Scientific and Industrial Research.
Gateway to Investment Routes
Foreign institutional investors can use investments in corporates, collaterals and government bond to
meet margin. Investors with more than 10pct stake will be regarded as FDI foreign direct investment.

Foreigners can directly invest in India either on by themselves or as a joint venture, with a
few exceptions with pertaining to investment limits and sectors.

No government acceptance is needed for FDI in virtually all sectors except a small adverse
list formulated by government. Sector specific guidelines are formulated by government
giving sectoral investment limitations if any.

If an investment does not qualify for automatic acceptance, FIPB considers the proposal.

Use of foreign brands names/trademarks is authorized for sales in India.

Indian capital market is open to FIIs and Indian companies are allowed to boost funds from
international capital markets.

Foreign technology collaborations are allowed with agreements on Technical know-how.

Fees Payment for designs and drawings.

Payment for engineering services.

Other royalty payments.

NRIs can invest in shares and or convertible debentures of Indian companies on a nonrepatriable basis and these investments are not considered as FDI.

Entry Procedures
Liaison office:Setting up of a liaison office requires prior approval from Reserve Bank of India (RBI).
Approval is usually granted for a period of three years and can be renewed thereafter.
Branch office:A prior approval from RBI is required. RBI closely examines the proposed activities to
be carried out in India.Subsequently, a certificate of establishing place of business in India is
required to be obtained from Registrar of Companies.

Project office:In specified cases, a project office is allowed to be set up under automatic route
otherwise a prior approval is required from RBI. As in case of branch office, a certificate of
establishing place of business in India is required to be obtained from Registrar of Companies.
Incorporation of a company
For registration and incorporation of a company, an application has to be filed with Registrar of
Companies. Once a company has been registered and incorporated in India, it is subject to laws and
regulations as applicable to other domestic companies in India.
There two types of companies that can be incorporatedPrivate company:A private company has minimum of two members and a minimum paid up capital
of Rs. 100,000 or a higher paid up capital as may be prescribed.
By its articles, a private company has to

Restrict rights to transfer its shares, if any

Limit its shareholders to a number of fifty

Prohibit any invitation to public to subscribe any of its shares or debentures of the company

Prohibit any invitation to acceptance of deposits from any person other than its members,
directors or their relatives.

Public company:A public company is defined as a company which is not a private company. A
subsidiary of a public company is also treated as a public company. A public company should have a
minimum paid up capital of Rs. 500,000 with a minimum seven members and three directors.
Maximum number of directors is 12 but can be increased subject to government approval.
Incorporation procedure:
Following steps are required to incorporate a company:

DIN (Director Identification Number)

Applying for name availability

Draft a Memorandum of Understanding (MOU) and Articles of Association (AOA)

Court stamping of MOU and AOA

Signing MOU and AOA by first subscribers

Register with (ROC) Registrar of Companies

Vetting of MOU and AOA by ROC

Certificate of incorporation

Immediate Business compliances:

Following registrations would be required to be done, depending on nature of business:
PAN (Permanent Account Number):All income tax payers are required to obtain an income tax
registration number i.e. PAN.
TAN (Tax Deduction Account Number): While running a business, certain payments will require
the payee to withhold tax. A new business is required to obtain Tan from income tax department.
Service tax:A person/company providing specified services needs to obtain service tax registration
within 30 days of providing the services.
VAT (Value Added Tax):VAT is levied on sale of goods. Any business proposing to carry out works
contract or trade in goods needs to register for VAT.
Excise duty registration: Excise duty is an indirect tax levy on manufacture of goods.
FRRO(Foreigners Regional registration Office):Foreigners coming to India on employment need
to register with FRRO within 14 days of their arrival.
IEC (Import Export Code):Prior to carrying out any export or import activities, it is mandatory to
obtain an IEC from Directorate General of Foreign Trade.
Trade Fairs in India

India International Leather Fair

Delhi Book Fair

Stationery Fair

15th India International Security Expo

India International Trade Fair

Energy Tech

Enviro Tech

Nakshatra

Aahar International Food Fair

Multi-products & dcor items etc.