Foreign Investment or Foreign Direct Investment (FDI)
A business entity of one country, which controls the ownership of a business enterprise in any other country is called Foreign Direct Investment (FDI). FDI could be done “organically” or “inorganically”, here organic FDI refers to a type of investment where a business enterprise of a country decides to expand its operations and they target any other country and they open their own venture of the existing business with the help of any business entity in that targeted country, while inorganic FDI refers to the investment in which the business enterprise of one country buys any company in the targeted country. Example of organic FDI in India is “Easy Day” a retail store chain by Walmart with the help of Bharti Airtel and the example of inorganic FDI in India is Vodafone Essar, here Vodafone acquired the Hutchison Essar.
There are 3 types of Foreign Direct Investment (FDI) and they are mentioned below.
- Horizontal FDI: When a business enterprise carries on it’s home country based business activities at the same value chain as of the home country in the targeted country through FDI.
- Platform FDI: When a business enterprise invest in the destination country for the purpose to export to the third country.
- Vertical FDI: When a business enterprise starts moving upstream or downstream in different value chains, means when the enterprise performs value adding activities level after level in a vertical fashion in the targeted country.
How GS Bagga And Associates Helps Enterprises
- Consultation on Foreign Direct Investment: Law office of G.S. Bagga and Associates provides a best possible consultation on Foreign Direct Investment to the business enterprise to make sure that they get the best possible benefit in their investment plan and further continue to get success with their investments.
- Assisting in setting up of a business unit: Law office of G.S. Bagga and Associates provides a best possible assistance to the investing firm in setting up a business unit in the form of company, branch office, back end office and liaison office in such a way that provides the best possible results to them and further make sure of their smooth running.
- Preparation of business project, business report and business plan: Law office of G.S. Bagga and Associates helps the company to prepare their business projects, business reports and business plans to make sure that they get maximum benefit in return. The scope of risk and breaking of law is so narrow that the business runs smoothly and helps our client to grow with great pace.
- Procuring approvals, licenses, clearances from Government: Law office of G.S. Bagga and Associates helps the business enterprise to procure approvals, licenses, clearance from government departments, regulators, agencies to run their business successfully. Furthermore, Law office of G.S. Bagga and Associates continues assist them even after procuring the aforementioned clearances so that they do not face any problem in the future and continue to grow in their industry.
- Drafting and forming of various agreements: We help in drafting and formation of various documents and agreements such as memorandum and articles of association, joint venture agreement, share purchase agreements, trade mark license agreements, shareholders’ agreements and many more.
- Consultation in tax planning: We consult and assist the business enterprise in tax planning, so that they doesn’t face any problem in running their business.
Regular pre and post advisory consultation and assistance: We help business enterprises in regular pre and post advisory consultation and assistance with the regulatory and legal framework after setting up the business.
Benefits You Expect
- Transparency in all policies
- Full legal support
- Trustworthy experience
- Quick legal actions
- Free legal consultation
If any of your known one is looking for help in investment in India, then we are happy to help you, just call us on either +91-11-43510775 or +91-9213782334 or just drop an e-mail at [email protected] and we will answer your queries.