New Foreign Investment Proposal Checklist Released in India

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DELHI – India’s Department of Industrial Policy and Promotion (DIPP) has released a new document checklist for submitting proposals to the Foreign Investment Promotion Board (FIPB).

Among other changes, the new FIPB notice requires single and multi-brand retailers provide documentary evidence that their brand is international in nature, and companies entering joint ventures (JVs) are now required to submit separate details about their Indian JV partner(s).

For JV applications, a diagrammatical representation of the flow of funds into the JV and an outline of company structure are now required to be submitted.

For FDI proposals in single and multi-brand retail, the new checklist now requires the following information be provided:

(i) The status of the compliance of the conditions as mentioned in FDI policy for single-brand product retail trading/multi brand retail trading.

(ii) The list of countries where the brand is being sold internationally.

(iii) Documentary evidence (brochures etc.) in support to show that the brand proposed to be sold is an international brand.

(iv) A declaration stating that the Indian joint venture partner company is controlled and owned by resident Indians.

(v) Existing activities and the existing capital structure of the Indian joint venture partner company.

(vi) Diagrammatic representation of the flow of funds into the joint venture indicating the business structure, with all levels of companies/entities involved.

(vii) Exclusive license agreement, between the foreign investor and brand  owner for compliance of condition 2(d) of paragraph (d) of  Consolidated FDI Policy Circular of 2014.

(viii) Sub-license/draft sub-license agreement between foreign investor and the investee /proposed Indian investee company granting sole and exclusive rights to the investee company to undertake SBRT of products.

(ix) List of products proposed to be sold under single brand.

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