Foreign Direct Investment Approval
- An industrial undertaking, i.e., a company with interests in industry can invest upto 24% equity in a MSME unit.
- If the equity goes beyond 24%, the industrial unit loses its MSME status.
- There is no restriction on the extent of equity that can be held by a Non-resident Indian (NRI) as an individual/partner in a MSME unit.
- Investors need to file an application with the Reserve Bank of India (RBI) in the prescribed format and approval is ordinarily granted within 15 days.
- For foreign investment outside the automatic route, clearance has to be obtained from Foreign Investment Promotion Board (FIPB).
- Applications for setting up a 100% Export Oriented Unit are also required to be filed with the SIA.
- For setting up a unit in an Export Processing Zone (EPZ), application has to be filed with the Development Commissioner of the concerned EPZ.
- Under automatic procedures, foreign technology agreements are being permitted in respect of industries that are designated as high priority industries.
- The use of foreign brand names and / or trade mark of goods is also now being permitted freely.
For further information regarding automatic approvals, write to
EXCHANGE CONTROL DEPARTMENT
RESERVE BANK OF INDIA
NEW CENTRAL OFFICE BUILDING
SHAHEED BHAGAT SINGH ROAD
BOMBAY - 400023
TEL: 2861602, 2860604 FAX: 2864667, 2861892
For proposals not coming in the automatic approval category write to:
SECRETARIAT OF INDUSTRIAL APPROVAL (SIA)
DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION
MINISTRY OF INDUSTRY UDYOG BHAWAN
NEW DELHI - 110001
TEL: 3014005 FAX: 3011770