What is Overseas Direct Investment? Direct investment outside India means investment made in Joint Venture (JV)/ Wholly Owned Subsidiary (WOS) by way of Contribution to the capital or subscription to the Memorandum of Association of a foreign entity but does not include portfolio investment; or…
What is contravention and compounding of contravention? Contravention is a breach of the provisions of the Foreign Exchange Management Act (FEMA), 1999 and rules/ regulations/ notification/ orders/ directions/ circulars issued there under. A voluntary process by which an entity committing a contravention can make an…
Share transfer or transfer of shares is a simple process with which the owner of the share, transfers the rights and liabilities of the share to another person for a consideration or by way of gift. Though the securities or other interest of any member…
Project Office (PO) means a location of business to constitute the interests of a foreign company, executing a project in India but excludes a Liaison Office. A project office in India is prohibited from undertaking or carrying on any activity other than the activity in…
After liberalization occurred, the government has enacted the Foreign Exchange Management Act, 1999 (FEMA). This act deals with the requirement of foreign exchange in the country. After bringing out the foreign exchange management act, the government of India has considered many changes in the amount…
Every company having foreign investment (FDI), is required to report the Reserve Bank of India. Foreign Direct Investment of upto 100% is allowed into Indian Private Limited Company and Limited company for most of the sectors. The amount of FDI into India has increased manifold…