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The process for getting Foreign Direct Investment (FDI) approval for a Chinese company in India involves several steps and is subject to scrutiny due to the sensitive nature of foreign investments, especially from neighboring countries.
Time Taken – 6 to 9 months
Cost – USD 5000
- Get the approval from the government for FDI from China by applying on FIFP portal – 6 to 9 Months
- File forms and get the approval – 20 days
With the changes in law in 2020, the FDI from China including Hong Kong requires an additional step of approval from DIPP and Ministry from home affairs. The timeline for approval is 6-9 months.
The approval can be obtained by filing an application on FIFP portal. The following documents are needed to be submitted on FIFP portal along with the application.
Details required in the application:
- Brief background of the investor company along with a list of ultimate beneficiaries
- Nature and activities the Indian company will undertake
- Manufacturing plans
- Details of Indian director along with contact number and address
- Details of foreign shareholders, ultimate beneficiaries and passports of all
- Number of employees and projections for the next 5 years
- Summary of Proposal on Company(Applicant) Letterhead
- Certificate of Incorporation(COI) (Investee/Investor/Downstream)
- Memorandum of Association(MOA) (Investee/Investor/Downstream)
- Board Resolution(Investee/Investor/Downstream)
- Audited Financial Statement of Last Financial Year(Investee/Investor/Downstream)
- Article of Association(Investee/Investor/Downstream)
After the approval is received from FIFP and MHA, the next step is to file the application for company registration on MCA portal.
The steps for company registration can be found here – Steps to register on company
About Rohit Lohade
Rohit Lohade is a Chartered Accountant with 15+ years of experience. He has assisted more than 300 Gobal Companies with India Entry Strategy