Litigation & Regulatory Representation
Foreign Direct Investment (FDI) Matters
Assistance with legal structuring, regulatory approvals, and FEMA/RBI compliance for inbound foreign investments into India.
- Estimate Cost
- ₹50,000 – ₹5,00,000
- Typical duration
- 30 days
Service overview
Assistance with legal structuring, regulatory approvals and compliance for inbound foreign investment into India, including assessment of the applicable FDI policy, FEMA requirements, sectoral conditions, entry routes, investment instruments and regulatory reporting requirements.
Who needs it? / When is it needed?
- Foreign investors investing in Indian companies or LLPs
- Indian companies, startups and LLPs receiving foreign investment
- Promoters and shareholders transferring shares to or from non-residents
- Businesses facing FEMA contraventions, delayed reporting or regulatory queries
What to expect from the WCP Professionals
- Review of the proposed investment structure
- Assessment of applicable FEMA and FDI requirements
- Identification of the applicable automatic or Government route
- Sectoral caps and conditions
- Regulatory approval requirements
- Transaction documentation
- Compliance obligations and assistance with applicable RBI and Government filings
Key deliverables
- FDI structure and regulatory assessment
- Entry-route analysis
- Sectoral-cap and eligibility review
- Regulatory approval assistance where applicable
- Transaction documentation support
- FEMA compliance checklist
- RBI reporting assistance and post-investment compliance guidance
Standard turnaround time
- Professional turnaround time depends on the complexity of the transaction, sector, investment structure, documentation and whether Government approval is required.
- Routine advisory and compliance reviews may generally be completed within an agreed professional timeline, while transactions requiring regulatory approval may take longer depending on the concerned authority.
Government fees, timelines & key outcomes
- Applicable Government or regulatory fees, if any, depend on the nature of the filing or approval and are separate from professional fees.
- Transactions under the automatic route generally do not require prior Government approval, while transactions falling under the Government route require the applicable approval before proceeding.
- RBI reporting timelines depend on the nature of the transaction; for example, FC-GPR reporting for an eligible issue of equity instruments is required within 30 days from the date of issue, while applicable annual FLA reporting is due by 15 July.
- Key outcomes may include successful completion of the investment, receipt of required Government approval, completion of RBI reporting and achievement of FEMA compliance.
Forms & filings involved
Depending on the transaction:
- Form FC-GPR — issue of equity instruments to foreign investors
- Form FC-TRS — transfers between residents and non-residents
- Annual Return on Foreign Liabilities and Assets (FLA)
- Other filings through RBI's FIRMS / Single Master Form system
- Applications and submissions for government approval, where the government route applies
Documents required
- Proposed transaction structure
- Details of the foreign investor and Indian investee entity
- Constitutional and corporate documents
- Incorporation and registration documents
- PAN and identification details
- Shareholding pattern
- Investment and transaction documents
- Valuation/pricing documents where applicable
- Board or shareholder approvals
- Business activity details
- Financial information and documents required for the relevant RBI or Government filing
What we need from you
- Complete details of the proposed investment
- Investor and investee entities
- Proposed investment amount and instrument
- Sector and business activity
- Proposed shareholding or ownership structure
- Transaction documents
- Corporate and KYC documents
- Previous foreign investment details
- Applicable approvals and any other information required to assess FEMA and FDI compliance
Important conditions
- The transaction must comply with the FEMA framework, applicable FDI policy, sectoral caps, entry route, pricing and valuation requirements, eligible investor and investee conditions, prohibited-sector restrictions and applicable reporting requirements.
- Government approval may be required depending on the sector, transaction structure or applicable policy.
- The regulatory position must be assessed based on the facts and rules applicable at the time of the transaction.
Additional information
- FDI compliance may involve both pre-transaction structuring and post-transaction reporting.
- The appropriate route, documentation, approval requirements and reporting obligations vary according to the sector, investor, investment instrument and transaction structure.
- RBI's FIRMS platform is used for applicable foreign investment reporting, with filings made through the relevant Authorised Dealer bank.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
When is government approval needed for FDI?
For sectors under the government route, above sectoral caps, and for investment from countries sharing a land border with India.
What is Press Note 3?
The 2020 policy requiring government approval for investments where the investor or beneficial owner is from a country sharing a land border with India.
What if FDI rules were breached?
The contravention can often be regularised by compounding with the RBI, or adjudicated by the Enforcement Directorate.
How is FDI approval applied for?
Through the National Single Window System, routed to the administrative ministry concerned.