Modes of doing business in India

i) where provisions of Press Note 1 (2005 Series) issued by the Government of India are attracted.
ii) where more than 24% foreign equity is proposed to be inducted for manufacture of items reserved for the Small Scale sector.
iii) FDI in sectors/activities to the extent permitted under Automatic Route   does not require any prior approval either by the Government or the Reserve Bank of India. 
iv) The investors are only required to notify the Regional Office concerned of the Reserve Bank of India within 30 days of receipt of inward remittances and file the required documents along with form FC-GPR with that Office within 30 days of issue of shares to the non-resident investors.2.Government Route

FDI in activities not covered under the automatic route requires prior Government approval and are considered by the Foreign Investment Promotion Board (FIPB), Ministry of Finance. Application can be made in Form FC-IL, which can be downloaded from http://www.dipp.gov.in

General permission of RBI under FEMA
Indian companies having foreign investment approval through FIPB route do not require any further clearance from the Reserve Bank of India for receiving inward remittance and issue of shares to the non-resident investors. The companies are required to notify the concerned Regional Office of the Reserve Bank of India of receipt of inward remittances within 30 days of such receipt and submit form FC-GPR within 30 days of issue of shares to the non-resident investors. 

For the following activities Automatic Route of Reserve Bank is not available for investment from person resident outside India. Sectoral cap on investment by person resident outside India
3. Such unit functions on a stand-alone basis 

4. In the event of winding -up of business and for remittance of winding -up proceeds, the branch or unit shall approach an authorized dealer with the following documents:
Person residing outside India can establish business in India with the prior approval of Reserve Bank of India. However such approval is not necessary in case of Banking Company, if such company has obtained necessary approval under the provisions of Banking Regulation Act, 1949.

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Foreign Companies are required to deliver the documents relating to their respective companies to the Registrar of Companies in India.

Returns to be delivered to Registrar by foreign company where documents etc. are altered.

Accounts along with the documents required to be delivered to Registrar of Companies in India.

Foreign Company shall in every prospectus inviting subscription in India, is required to mention the name of the country in which it is incorporated.

Any document which any foreign company is required to deliver to the Registrar shall be delivered to the Registrar having jurisdiction over New Delhi.

Non compliance of the above said provisions shall attract the penalty which may extend to Rs.10, 000 and in case of continuing offence an additional fine of Rs.1000 for every day during which the default continues.

Company’s failure to comply with the part not to affect its liability under contracts etc.

Provisions of Part V of Companies Act i.e. ‘Charges’ shall apply mutatis mutandis to

Charges on properties in India which are created by foreign company after 15th day of January, 1937; and

Charges on property in India which is acquired by any foreign company after the day aforesaid.

a) Auditor’s Certificate
b) No-objection or Tax clearance certificate from Income Tax Authority for the remittance