Make in India initiative was launched by Prime Minister Modi on 25th September 2014 as a part of a wider set of nation-building initiatives It is a plan devised to transform developing India into a global design & manufacturing hub, in a world market. It represents a complete Changes in the government’s thinking “ a shifting from issuing authority to business partners, in keeping with PM’s Principle is Make in India government maximum governance.
A workshop titled “ Make in India secretarial prospective &initiative’s was conducted on 29th December 2014 under which an action plan for 1 year and 3 Years has been prepared to boost investments in 25 sectors.
Make in India focuses on the following 25 sectors of the Indian economy ( 100% FDI Permitted )
- Automobiles
- Auto Spare Parts
- Aviation
- Biotech
- Chemicals
- Construction
- Defense manufacturing industries
- Electrical manufacturing industries
- Electronic Systems
- Food Processing
- IT and BPM
- Leather
- Media and Entertainment
- Mining
- Oil and Gas
- Pharmaceuticals
- Ports & Shipping
- Railways
- Renewable energy
- Roads & Railways
- Space
- Textiles & Garments
- Terminal power
- Tourism & Hospitality
Exception under:
Space – 74%
Defense – 49%
News Media – 26%
FDI is prohibited under the Government route and automatic route in the following sectors
Atomic Energy
Lottery business
Gambling and betting
Business of chit fund
Nidhi
Agricultural
Housing and real estate business
Trading is Transfer development rights(TDRS)
Manufacturing of cigars, cheroots, cigarillos, and cigarettes, of tobacco or of its substitutes
Reasons to Make in India
1 Separate Legal Entity
2 Easy Transferability of Shares
- Perpetual succession
4 Foreign direct investment
5 Large market for wide range of resources
6 Young population
7 Developments in Technology
Who Can MAKE IN INDIA
- A foreign National/ entity incorporated outside India(Other than a citizen of Pakistan or Bangladesh)
Where and By How
- By acquiring shares of the company or by setting up a subsidiary in permitted sectors in the following entities
- Limited Liability Partnership
- Private Limited Company
- Public Limited Company
As FDI is allowed in India under Two Routes
- Automatic Route
- Government Route
AUTOMATIC ROUTE:
It does not require prior approval either of the government or RBI in all to sectors specified in the policy
Only post investment filings with the RBI are required to be done within 30 days of receipt of investment money in India of filing prescribed documents and details of Allotment of shares within 30 days of allotment of shares to Foreign Investors
NOT COVERED IN AUTOMATIC ROUTE:
It requires prior approval of the Government which is considered by the Foreign Investment Promotion Based (FIPB)
Audit Disciples will help you to go through all these hurdles without any hindrances to be your legal and professional consultant and to incorporate without any issues, timely and cost-effectively.
PROCESSING TIME:
30 – 45 Working days subject to ROC processing time and timely submission of relevant documents by the client
MINIMUM REQUIREMENT:
- Minimum 2 Share Holders
- Minimum Directors out of which being an Indian citizen and Indian resident
- Written of MOA and AOA documents to be attested by the Notary/ Indian Embassy
- Board Resolution passed by Foreign company for acquires in shares in Indian company
DOCUMENTS FOR INDIAN NATIONALS
- PAN for all director
- Driving License , Passport, Voters Id/ Aadhar of all the directors
- Passport size photo
- Specimen signature of all director
Latest Bank Statement , Telephone bill/ electricity bill in the of all directors not less 45 days.