The Indian government has released consolidated Foreign Direct Investment (FDI) policy guidelines which are expected to simplify India’s FDI rules for foreign investors and stimulate economic growth, says Nair & Co. which provides international expansion services for companies setting up foreign operations.

1. India Issues Consolidated FDI Policy to Attract Foreign Investment: Update from Nair & Co.
International Expansion Services Team
(Sunnyvale, CA)- The Indian government has released consolidated Foreign Direct Investment (FDI) policy
guidelines which are expected to simplify India’s FDI rules for foreign investors and stimulate economic growth,
says Nair & Co. which providesinternational expansion services for companies setting up foreign operations.
The consolidated FDI policy, which takes effect from April 5, 2013, encompass changes introduced during the last
year mainly in multi-brand and single-brand retail, Asset Reconstruction Companies (ARC), power exchanges, civil
aviation, Non-banking Financial Companies (NBFCs) and the broadcasting sector.
Consolidated FDI Policy Guidelines: Key Highlights
Up to 51% FDI is allowed in multi-brand retail sector.
FDI in ARCs is increased to 74% (from 49%) which will bring in more foreign expertise. However, a single
FII cannot invest more than 10% of the total paid up capital of the ARC.
FDI ceiling for various broadcasting services is increased to 74%, 49% in power trading exchanges and 49%
in the domestic airlines.
Other Important Policies:
Downstream Investment
Under the Automatic Route, Indian companies having FDI are permitted to make downstream investment in a
Limited Liability Partnership (LLP). However, they need to fulfill the following conditions:
The company and the concerned LLP need to operate in sectors where 100% FDI is permitted through the
automatic route; and
No FDI-linked performance conditions exist.
Conversion of a Company into a Limited Liability Partnership
The policy has also listed around eight obligatory conditions and one optional clause, related to the conversion of a
company with FDI, into a Limited Liability Partnership (LLP).
Issue Price of Shares
With regards to the “issue price of shares” for shares issued to a non-resident who invests in an Indian company
through subscription to the Memorandum of Association (MOA) during incorporation, the share price can be the
face value subject to the non the non-resident’s eligibility to invest under the FDI scheme.
Subscribe to regular International Business Services alerts from Nair & Co.
For more information about doing business overseas or to know more about our International Expansion Services
please contact us.

2. About Nair & Co.
Nair & Co. provides you with your one touch outsourced finance, HR, legal and global tax compliance department
for your international operations. If you are expanding abroad for the first time or increasing your global footprint,
our turnkey solutions help you do so with minimal risk, stress and cost. We support 4000+ client operations in over
56 countries and have core offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among
the top 100 outsourcing services providers in the world by the International Association of Outsourcing
Professionals (IAOP). Learn more at www.nair-co.com
Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news
at Nair & Co. Industry Alerts.
Know more on:
International payroll services
International business expansion
expat tax advice