Foreign Direct Investment (FDI) in India is governed by the FDI Policy formulated by the Government of India (GOI) and provisions of the Foreign Exchange Management Act (FEMA), 1999.

While FDI policies fall under the ambit of the Central Government; FEMA regulations prescribe the mode of investments, i.e. the manner of receiving funds, issue of shares/convertible debentures and preference shares, and reporting investments to the Reserve Bank of India (RBI).

A Non-National / Business incorporated outside India has the following options to setup up a new business in India:

Limited Company:

Incorporate a Limited Company under the Companies Act, 2013, as a Joint Venture (JV) or a Wholly Owned Subsidiary;

Limited Liability Partnership (LLP)

Incorporate a Limited Liability Partnership (LLP) in India, as a Joint Venture (JV) or with a 100% ownership subject to FDI Guidelines.

Branch Office or Liaison/Representative Office, Project Office

Set up a Liaison/Representative Office, Project Office or a Branch Office. Such entities can undertake only those activities permitted under the FEMA.

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