Foreign companies venturing in India

India Investment Center Is the first contact point for information and assistance. It provides knowledge about the conditions, laws, policies, procedures and incentives relating to investment opportunities in India.
Foreign Investment approval system
A foreign investor can, 1) Invest either in an Indian company or in a 100% owned subsidiary. 2) Open a liaison office with the prior permission from the Reserve Bank of India. 3) Open a branch office with the prior permission of the Reserve Bank of India. Once established, the Branch office should also get registered with the Registrar of Companies.Foreign investment Promotion Board (FIPB)
It’s objective is to promote the inflow of foreign direct investment into India. Most of the Foreign Direct Investments (FDI) are under the automatic route. However FDI in few specified industries have to obtain FIPB approval.Foreign Exchange Management Act (FEMA)
The Foreign Exchange Regulations Act, is enforced by the Reserve Bank of India, The following are the relevant regulations under FEMA
1. Restrictions on Investments / purchases: A foreign company or foreign citizen has to obtain the permission of the Reserve Bank of India for establishing operations in India or for purchasing any company in India.
2. Acquisition / Disposal of Immovable Properties: A foreign company or a foreign citizen has to obtain the permission of the Reserve Bank of India for purchasing or selling any immovable property (ie., any real estate) in India, or under automatic route file declaration for acquiring property. Any approval as stated above will have to be made to the Central office at Bombay of the Reserve Bank of India.
3. Bank accounts: A bank account opened by a foreign company or by certain foreign citizens are called ‘QA 22’ account. A declaration has to be given to the bank indicating the business of the company or person and sources from which the credits will be received. Credits will be allowed to be made only from the declared sources and not otherwise.