Updated on 08.08.2024 An idea doesn't become a business without effort! Budding entrepreneurs understand the effort necessary to create a business, however, they might not be familiar with the micro details of launching and running a business venture in India. You can visit our blog on Incorporating an Indian Business…

The Overseas Investment framework before 22 Aug 2022 was not clear on some aspects and left room for multiple interpretations. With an aim to revamp the Overseas Investment framework, in attempt to simplify and liberalize the regulatory framework, the Government of India and RBI notified the Overseas Investment Rules and…

It is a general practice by foreign entities to compensate the employees / directors of their India entity (subsidiary / office) by way of Employee Stock Ownership Plan (ESOP). Prior to August 2022, the employees were permitted to acquire shares under ESOP and there was a reporting requirement of submission…

There was a general view prevailing in the industry that the reference and calculations of Late Submission Fee (LSF) in the RBI Notification are very complicated and unless an expert is engaged, it wasn’t possible for easy verification of accuracy of LSF mentioned in the approval letter of RBI. As…

RBI has made mandatory LEI registration for all cross border transactions such as capital or current account transactions of INR 50 crore and above, w.e.f  1st October, 2022. Previously, LEI registration was made compulsory for all RTGS and NEFT transactions of INR 50 crore and above, w. e. f. 1st…

Have you ever come across a case where a notice has been issued by the Enforcement Directorate or any regulatory authority for violation of foreign exchange laws or any other law(s) to a Company that has been struck off or dissolved?  Can any inquiry or investigation be initiated against a…

In recent times the domestic financial markets are witnessing outflows of overseas investment and the country’s current account deficit is widening as a result of rising crude oil prices and the current geopolitical situation. The Reserve Bank of India (RBI) vide its press release number 2022-2023/481 dated June 6, 2022…

When a body corporate incorporated outside India (Foreign Company) intends to establish it’s operation in India, it needs to decide on the medium through which it can step in the Indian market. The most common way is through establishing a wholly owned subsidiary (WOS) company. For more detail, you may…

As per the report by consulting firm HexGn, Indian startups, which includes Zomato, Byjiu’s, Phonepe, Unacademy etc are estimated to have received more than USD 10 billion in funding across more than 1,200 deals in 2020 despite the COVID crisis. An innovative idea needs to be backed by sufficient funding…

Quick Glance Indirect Foreign Investment is considered as Downstream Investment (DI). Downstream investments can be made through internal accruals. Indian entity can make DI by bringing in requisite funds from abroad. However, entity making DI cannot use funds borrowed in the domestic markets. An Indian Entity making DI shall file…