Foreign Direct

Investment

Slide 23
Foreign Company

– A company operating in a country other than its home country.

– Required to comply with the Foreign Exchange Management Act (FEMA),
for setting up investment in India or setting up an office.
– The term ‘foreign company’ is clearly laid down under Section 2 sub-section
42 of the Companies Act, 2013
– A foreign company is any company or body corporate incorporated outside
India which,
1. has a place of business in India whether by itself or through an agent, physically
or through electronic mode; and
2. conducts any business activity in India in any other manner.
Foreign Direct Investment
Consisting of :
No FDI Allowed
Route of FDI
1. Automatic Route
2. Government Route
Various Way of FDI

– Wholly owned Subsidiary

– Joint Venture

– Indian Subsidiary of Foreign Company