Our Services
Foreign Direct Investment (FDI) in India
India offers significant opportunities for international businesses across technology, manufacturing, infrastructure, healthcare and financial services. KahemIndia helps foreign investors understand and navigate the FDI framework while supporting the establishment and ongoing compliance of their Indian investments.
Your Gateway to Investing and Expanding in India
2
Principal Entry Routes
100%
FDI Permitted in Many Sectors
Global
Investors Supported
India Market Support
We help international investors understand the Indian business environment.
Regulatory-Focused Approach
We identify the FDI requirements relevant to your proposed investment.
Investment-to-Compliance
From investment planning through entity formation and ongoing compliance.
Integrated Professional Services
Accounting, taxation, audit and corporate compliance coordinated alongside FDI.
About This Service
Establish a Lasting Commercial Interest in India
Foreign Direct Investment broadly refers to investment made by a person or entity resident outside India into an Indian business with the intention of establishing a lasting commercial interest. It can take different forms — investment into an Indian subsidiary or company, a Joint Venture, eligible LLP structures or other permitted arrangements.
The applicable requirements depend on the investor, the investee entity, the sector, the investment amount, the ownership percentage and the applicable regulatory route. KahemIndia helps you evaluate each of these before capital is committed.
Why India
Why Invest in India?
India provides international investors with access to a large market, a skilled workforce and an expanding digital economy.
Explore Opportunities- A large domestic market
- Growing consumer demand
- Skilled human resources
- Expanding technology infrastructure
- Manufacturing opportunities and a strong services sector
- Digital economy growth
- A startup and innovation ecosystem
- Access to diverse regional markets
A Key Part of a Global Expansion Strategy
How FDI Works
FDI Entry Routes
Foreign investment generally operates through two principal regulatory routes, subject to the sector-specific framework.
Automatic Route
Eligible investment may generally be made without prior government approval, subject to applicable conditions, sectoral limits and reporting.
Government Route
Certain investments require prior government approval, depending on the sector, structure and ownership.
Why the Route Matters
Confirm whether FDI is permitted, the sectoral cap, the entry route, whether approval applies and the reporting obligations.
Eligible Investors
Who Can Invest in India?
Depending on the applicable regulations, eligible foreign investors can take a range of forms.
Foreign Companies & Entities
Foreign companies and foreign incorporated entities investing into India.
Non-Resident Individuals
Eligible non-resident individuals investing under applicable regulations.
NRIs & OCIs
Non-Resident Indians and Overseas Citizens of India, subject to conditions.
Foreign Investment Funds
Eligible foreign investment funds investing into permitted structures.
Foreign Venture Capital Investors
Registered FVCIs investing in eligible Indian businesses.
Other Permitted Investors
Additional investors permitted under the applicable framework.
Our Process
FDI Through an Indian Subsidiary
A foreign company can establish an Indian subsidiary through seven broad stages.
- 01
Business & Sector Assessment
Understand the proposed activity and determine whether foreign investment is permitted.
- 02
FDI Route Assessment
Determine whether the investment can proceed under the Automatic Route or requires approval.
- 03
Entity Selection
Select an appropriate Indian entity based on the business model.
- 04
Company Incorporation
Establish the Indian entity and complete applicable corporate registrations.
- 05
Investment Infusion
Investment is brought into India per applicable foreign exchange and investment regulations.
- 06
Reporting
Applicable FDI reporting is completed through the prescribed regulatory channels.
- 07
Ongoing Compliance
The entity maintains corporate, tax, foreign exchange and investment-related compliance.
Sectors
Sectors Commonly Evaluated for FDI
Important to Note
Sectors Where Foreign Investment May Be Restricted
Certain activities are subject to restrictions or may not be open to FDI under the applicable framework. Because regulatory provisions can change, the current position should always be evaluated before an investment decision.
- Lottery business
- Gambling and betting
- Chit funds and Nidhi companies
- Certain real estate activities
- Specified tobacco-related manufacturing
- Activities reserved for the public sector
FDI Compliance After Investment
Foreign investment creates continuing obligations. We help you maintain an organized compliance framework long after the initial investment.
- FDI & FEMA compliance
- Share issuance & transfer reporting
- Valuation requirements
- Annual reporting & corporate filings
- Tax compliance, accounting & audit
- Beneficial ownership reporting
Repatriation of Funds
Foreign investors may repatriate eligible capital, profits, dividends or other permitted amounts from India, subject to applicable tax, foreign exchange, corporate and regulatory requirements.
Learn More →FAQs
Frequently Asked Questions
FDI is investment by a foreign investor into an Indian business or permitted investment structure with a long-term commercial interest.
Foreign investment is permitted across numerous sectors, subject to the applicable FDI policy, sectoral limits, entry routes, and conditions.
The Automatic Route allows eligible foreign investments to be made without prior government approval, subject to applicable requirements.
Certain investments require prior approval under the applicable regulatory framework before the investment can proceed.
100% foreign ownership is permitted in several sectors, subject to applicable FDI rules and sector-specific conditions.
Eligible profits and other permitted funds may generally be repatriated subject to applicable tax, foreign exchange, and regulatory requirements.
Ready to Invest in India?
India presents significant opportunities for international investors, but successful market entry requires appropriate planning and regulatory compliance. KahemIndia can help you evaluate the FDI framework, structure your investment, establish your Indian presence and manage ongoing requirements.
- Regulatory Clarity
- Structured Entry
- Ongoing Compliance
Related Reading
If your investment involves incorporating a new Indian entity, see Company Formation in India for the registration process. Export-oriented investors should also review Special Economic Zones (SEZs) in India.