Industries Department

FAQ on Foreign Investment in India RBI FAQ

What are the forms in which business can be conducted by a foreign company in India?

  • A foreign company planning to set up business operations in India has the following options :
  • As an incorporated entity by incorporating a company under the Companies Act,1956 through.
    • Joint Ventures; or
    • Wholly Owned Subsidiaries.
  • As an unincorporated entity through.
    • Liaison Office/Representative Office.
    • Project Office.
    • Branch Office.

How does a foreign company invest in India? What are the regulations pertaining to issue of shares by Indian companies to foreign collaborators/investors?
Which are the sectors where FDI is not allowed in India, under the Automatic Route as well as Government Route?
What should be done after investment is made under the Automatic Route or with Government approval?
What are the guidelines for transfer of existing shares from residents to non-residents or non-residents to residents?
What if the transfer from resident to non-resident does not fall under the above facility?
Are the investments and profits earned in India repatriable?
What are the guidelines on issue and valuation of shares in case of existing companies?
What are the regulations pertaining to issue of ADRs/GDRs by Indian companies?
What is meant by Sponsored ADR & Two-way fungibility Scheme of ADR/GDR?
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Tamil Nadu Industrial Guidance & Export Promotion Bureau
( Industries Department - Govt. of Tamil Nadu )
19-A, Rukmani Lakshmipathy Salai, Egmore, Chennai - 600 008. INDIA

Phone: +91-44-2855 3866 | Fax: +91-44-2855 3856 | guidance@tn.gov.in

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