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Foreign Investment Opportunities with the Help of a Partnership Business in India

Apr 13th 2015 at 5:27 AM

partnership business in India

There was a time when due to a number of regulations and licensing practices, India was one of the least favorable countries in the world for foreign firms who sought a partnership business in India. But during the 90s, a major change in the government of India’s stand on foreign investment opened the gates to multination firms from across the world to set up their shops on Indian shores with relative ease. As years passed by, India continued to enjoy immense foreign investment as a more favorable climate was created by the government to attract investors from developed markets.

Foreign Investment in India

A number of international firms have already invested huge sums of money in Indian markets and have either gone solo to set up their own operations or have found a partnership business in India. Any firm that wishes to invest in India will have to follow the procedures set by the Companies Act of 1956 that allows setting up of a completely owned subsidiary or a joint venture with a partnership business in India. International firms can operate in India through a Liason Office, Branch Office or a Project Office.

Type of Investments Allowed for Foreign Companies

Automatic Route

The automatic route allows 100% Foreign Direct Investment from offshore companies who do not have to seek the permission of the Reserve Bank of India to make the investment. There is another route where a foreign company can seek approval from the Government of India before taking Foreign Direct Investment activities within the country. The Foreign Investment Promotion Board is responsible for the grant of approval to applications filed by foreign companies.

Foreign Investment with a Partnership Business in India

India has a fast emerging market for health and insurance companies to try their luck and reap rewards. The demand is ever-growing among Indian consumers for better healthcare and insurance services and the improved economic stability across prominent cities across India has aided this demand. In the last decade we have already seen a number of insurance multinationals joining hands with business partners in India to set up alliances to provide a better insurance delivery platform. Another sector that has seen immense foreign investment in the past is the mechanized and communication industry which has plenty of potential and scope for profits. The education sector is another industry where foreign investment can be made with the help of a partnership business in India.

About the Author…

Future brand Marketing Consultants India is a brand management consultant provides branding strategy, branding in India, retail industry services in India, consumer insight, India consumer behavior, online consumer behavior, branding insights, brand insights, marketing insights, India marketing insights and consumer insight Indian.

Article Source: http://www.articlesbase.com/business-ideas-articles/foreign-investment-opportunities-with-the-help-of-a-partnership-business-in-india-7245672.html

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