How Do You Approach Foreign Investors? (2024)

How Do You Approach Foreign Investors?

A start-up or a successful business looking to expand- all firms at different stages find themselves in need of investors. Just like this need, the struggle to find the right investor is common. The struggle is especially more when businesses limit their search to just investors within India.

However, if you are ready for foreign direct investment, FDI India is here to help you tap into the plethora of possibilities that come with foreign capital like talent, new technology, more job opportunities, improved infrastructure, and managerial expertise. You can think of us as in FDI agency that will help you secure your success.

Now, more and more businesses are turning to overseas direct investment as a good funding option. FDI is a critical driver of economic growth in the country. In simple terms, foreign direct investment is an investment from a foreign entity (an individual or a firm) into the business of another country. FDI is characterized by a notion of control. Therefore, it is not simply the transfer of funds, but also comes with some degree of control in the business.

The government of India has over the years formulated many reforms to ease FDI norms with the aim of attracting more and more foreign direct investment into the country. More recently, the government sanctioned some reforms in sectors like contract manufacturing, digital media, aviation etc., that were initial proposed by the Finance Minister Nirmala Sitharaman

What even big businesses struggle with is finding investors for their business. This is where we come in. We help you take your business opportunities to the right investor. We facilitate foreign direct investment in India by bridging the gap between business in India and foreign investors.

You can get in touch with us and transfer all your tensions to us. The process of foreign direct investment can be overwhelming with so many steps, rules, and regulations. We simplify the entire process and systemically handle it for you. From the start to the end, we are with you through the entire process.

As you go ahead on this journey of business growth, it is important to remember that you are not just looking for someone with deep pockets, you are looking for a partner or rather a ‘lasting partner’ who helps you in this journey by helping you find strong connections that will allow your business to grow. This is why we study your business profile and help you connect with the right investor for your business.

Foreign direct investment in India is done via two routes- the automatic route and the government route.

  1. Automatic Route

Under this route, foreign direct investment up to 100% is allowed in all sectors and activities except the following. The services/activities listed below require prior approval of the government.

  • Where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale sector.
  • FDI in sectors/activities to the extent permitted under Automatic Route does not require any prior approval either by the government or the Reserve Bank of India
  • The investors are only required to notify the Regional Office concerned of the Reserve Bank of India within 30 days of receipt of inward remittances and file the required documents along with form FC-GPR with that Office within 30 days of issue of shares to the non-resident investors.
  • Where provisions of Press Note 1 (2005 Series) issued by the Government of India are attracted.
  1. Government Route

Sectors and activities that are not covered under the automatic route require an approval from the Government of India and are considered by the Ministry of Finance and Foreign Investment Promotion Board (FIPB).

How Do You Approach Foreign Investors? (2024)
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