Inbound Investment- FDI in India

India offers attractive opportunities for Foreign Direct Investment (FDI). Since opening up of economy in 1991 India has adopted gradual yet progressive approach towards FDI and as on date most of the sectors are open for FDI under the Automatic Route.

The Reserve Bank of India (RBI) has with the objective of integrating the reporting structures of various types of foreign investment in India, introduced a Single Master Form (SMF) subsuming all the existing reports. For this purpose, RBI has implemented FIRMS (Foreign Investment Reporting and Management System).

In the first phase, the Entity Master was made available online in FIRMS. Entity Master on FIRMS is required to be updated for all entities which have or earlier had any FDI either under the FEMA regime or even under the FERA regime. The Entity Master has also to be created for any new Company which proposes to have FDI.

In the second phase, RBI has with effect from 1st September 2018 implemented the Single Master Form (SMF). So now all filings of Forms FC-GPR, FC-TRS, LLP-I, LLP-II, CN, ESOP, DRR, DI and InVI have to be done in SMF only through FIRMS.

RBI has also introduced online reporting for Annual Return on Foreign Liabilities and Assets for all entities having FDI and ODI on the new platform FLAIR. Earlier, this reporting in Form FLA was to be done through Email.

Our service offering in this segment includes, advising and assisting on selection of right structure including entity selection and capital structuring, advice on Foreign Exchange Regulations (FEMA) and Corporate Laws (Companies Act); and advice on selecting tax effective jurisdiction for entry into India. The Firm also provides compliance services like filing of Form FC GPR, FC TRS, Return of foreign liabilities & assets (FLA), etc.