Required Documentation for Foreign Investment Approval

Required Documentation for Foreign Investment Approval Every FIFP approval or Foreign Investment Approval application must file the requisite documents along with the FIFP portal application with the Authority to further their candidature with the FI Authority. This article details some important documents that must be attached to the FIFP approval application.

Foreign Investment Approval: Certificate of Incorporation Every FIFP portal applicant must submit the Certificate of Incorporation of the Investee as well as its Investor Companies and/or LLPs. ● Here, the Investee company can be a proposed entity. ● The Authority puts no restriction on the company to be incorporated. ● The unincorporated Investee Companies must obtain a declaration from the applicant that it is unincorporated or yet to be incorporated. ● By this, the Investee Entity will be incorporated after obtaining the FIFP approval from the Central Government.

● Also, the applicant must submit a copy of the Certificate of Incorporation of the Investee company within 60 days of the approval letter issue by the Competent Forex Authority. ● The Foreign Investor(s) must submit documents equivalent to CoI if they do not possess CoI as per their Country’s laws. ● Investors must also submit a declaration with the necessary regulations or orders to that effect to the Authority.

Memorandum of Association The FIFP portal applicant must submit the Memorandum of Association of the Investee as well as Investor Companies on time. ● For an Investee Company that is yet to be incorporated, the applicant must seek a draft of the MoA. ● The MoA draft must contain the objects of the company in support of the proposed business activities. ● The applicant must also submit a copy of the MoA of the Investee Company within 60 days of the approval letter issue by the Forex Authority. ● Foreign Investors must provide documents equivalent to MoA if they do not have a separate MoA and AoA as per their Country’s laws. ● They must submit a declaration along with the necessary regulations and circulars to that effect.

Board Resolution for the Foreign Investment Approval The Foreign Investment Facilitation Portal applicant must submit the Board Resolution of the Investee as well as Investor Companies. If the Investee entity is yet to be incorporated, the FIFP applicant must obtain a letter of Authority from the following entities of the Indian investee entity in support of the filled FIFP portal application: ● ● ● ●

Proposed Shareholders Proposed Promoters Appointed Directors Member Partners

Audited Financial Statement The FIFP applicant must submit the Audited Financial Statement of the previous financial year of the Investee as well as Investor Companies in the proper format. ● Suppose there is an unincorporated Investee entity that is yet to be incorporated. Or you can take an example of an incorporated Investee entity that has not completed a single audit cycle in the application filing period. Zin such cases, the applicant must provide a declaration to that effect. ● Every Foreign Investor is exempted from the audit requirement under the Country’s special law. ● Still, the applicant must provide the required declaration with the necessary regulations and circulars to that effect.

Article of Association The FIFP portal applicant must submit the Articles of Association of the Investee as well as Investor Companies on time. ● For an Investee Company that is yet to be incorporated, the applicant must seek a draft of the AoA. ● The AoA draft must contain the objects of the company in support of the proposed business activities. ● The applicant must also submit a copy of the AoA of the Investee Company within 60 days of the approval letter issue by the Forex Authority. ● Foreign Investors must provide documents equivalent to AoA if they do not have a separate MoA and AoA as per their Country’s laws. ● They must submit a declaration along with the necessary regulations and circulars to that effect.

For more information pertaining to the Foreign Investment Approval application procedure, connect with the FDI experts at Registrationwala.

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