If the business that you are going to start, falls in the automatic route of investment in India, Than you have to notify the same within 30 days of receipt of the same. Procedure for the investment through Automatic routes is as follows:
"The proposals for approval under the automatic route are to be made to the Reserve Bank
of India in the FC (RBI) form. In a major drive to simplify procedures for foreign direct investment
under the “automatic route”, RBI has given permission to Indian Companies to accept
investment under this route without obtaining prior approval from Reserve Bank of India.
However, investors are required to notify the concerned Regional Offices of RBI of receipt "
All the businesses excepting the below falls in automatic route:
LIST OF INDUSTRIES FOR WHICH INDUSTRIAL LICENSING IS COMPULSORY under Industries
(Development & Regulation) Act, 1951
1. Distillation and brewing of alcoholic drinks.
2. Cigars and cigarettes of tobacco and manufactured tobacco substitutes.
3. Electronic Aerospace and defence equipment: all types.
4. Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and
matches.
5. Hazardous chemicals.
a. Hydrocyanic acid and its derivatives
b. Phosgene and its derivatives
c. Isocyanates and di-isocyanates of hydrocarbon, not elsewhere specified (example:
Methyl Isocyanate)
6. Drugs and Pharmaceuticals (according to modified Drug Policy issued in September, 1994
and subsequently amended in February, 1999)
Note: Manufacture of SSI reserved items by other industrial undertakings and location of industrial
undertakings in relaxation of the notified locational policy will attract compulsory licensing.
of inward remittances within 30 days of such receipt and will have to file the required
documents with the concerned Regional Office of the RBI within 30 days after issue of
shares to foreign investors. This facility is available to NRI/OCB investment also.
