If you are an Indian entrepreneur looking for avenues to do business abroad, what are the options available? While large corporations have lawyers at their disposal to untangle the legal mess, Indian businessmen looking to invest to the tune of less than twenty five crores in a foreign land, have unique challenges.
Such Indian residents have to use the Reserve Bank of India's automatic approval route. They have to take care of the laws, the government rules and regulations of the foreign country, and also those of the Reserve Bank of India (RBI).
Therefore, authentic advice and support are a must to navigate through the legal terms.
For instance, relevant sections of the Foreign Exchange Management Act, 1999 or FEMA, dictate who can hold, own, transfer, or invest in either a foreign currency, foreign security, or any immovable property abroad.
Moreover, relevant sections of the FEMA Act define who is a 'person' (a broad term that includes a firm, company, entity) residing in India. There is a very fine line here, as an Indian citizen is different than an Indian resident in the eyes of the law. If you are a citizen of India, but not a resident, then the RBI rules won't govern you!
Further, there are sectors in which Indian residents are prohibited from investing in, in a foreign land. Real estate is an example but few of the countries invite such investors to invest in real estate along with permanent residency option. Also, such entrepreneurs have to be careful to not invest in activities which are deemed to be illegal in the host country.
Again, under FEMA rules, certain kinds of remittances are prohibited, like those generated from lottery winnings, purchase of sweepstakes and more.
Foreign investments by entrepreneurs residing in India don't require an approval in three cases: one, under the Liberalized scheme by individuals (up to USD 250,000 per annum). Two, under General Permission for funds held in foreign currency accounts. Three, under the Automatic Approval Route (within 400 per cent of their net worth).
In each of the three cases mentioned above, there are elaborate laws that entrepreneurs have to abide by. While navigating through this intricate maze of legal terms and technicalities can be overwhelming, one can enlist the help of experts in the field. It is best to consult business lawyers and strategic advisors who have extensive experience in helping individual entrepreneurs do business abroad.
Ace Advisor India (AAI)is one such consultancy that provides guidance and assistance at every step and helps businesses grow globally.AAI provides end to end consulting as not only identifying right opportunities abroad but also their due diligence, duly compliant, local partner assistant, company formation, banking facilities and whole gamut of corporate services duly available abroad
"There is an increasing demand and enthusiasm amongst Indians to explore new avenues in their business ventures abroad. With the right approach and guidance, any Indian venture can make its mark on the global marketplace.", said the CEO of Ace Advisors India Mr. Sanjeev Jain.
"With globalisation and cross border trade opportunities it's imperative to understand & comprehend foreign market economic, social and political conditions from macro & micro level as lots of business failed just because they didn't do prior research and not getting right advising partner.", said Sanjeev Jain
Mr Jain said "if you really make it big in international market, engage consulting & advising partner from day one." "In a dynamic international business environment every few months one has to do SWOT so that a business flourish without any major disruption"
Ace Advisors India helps & support businessmen's to achieve long & short term goals to expand business abroad.
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