Sagnik (Management Trainee) 27 February 2012
Dear Sirs,
Our firm is in the bussiness of licencing out its trademark in lieu of payment apart from that it has no other trade. We wish to bring foreign investment in it. Is their any sectoral cap in that regard. Could we even use FDI route, or else which route should be suitable .
Regards,
Sagnik Sanyal
Rajesh Hazra (Mediator and Legal Counsel ) 02 March 2012
I also await to get the answers from our expert members of LCI.
Dear Sagnik,
With regard to business of your firm as described in your query, 100% FDI is possible through the automatic route. This is in view of the current FDI policy of the government (Circular 2 of DIPP effective from October 1, 2011). Policy provides the sectoral caps for certain sectors and also the prohibited sectors however it is categorically mentioned that those sectors or activities not mentioned would attract 100% FDI through automatic route.
Since licensing of intangible assets is not mentioned as a sector/activity in the FDI policy, 100% FDI would be allowed.
Trust the above is helpful.
Abhinav Bhalla
B.R. Bhalla & Associates
+91 9910406711
Sagnik (Management Trainee) 09 March 2012
Thank you sir, I too felt the same & have communicated the same to my seniors.
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