FIFP approval is telecom is the permission to facilitate foreign investment in your telecom company. Issued by the Government of India, you can obtain this license via the Foreign Investment Facilitation portal, a single point interface started by the government of India that investors can leverage to provide foreign direct investment into any company they wish.
Thus, if you’re interested in bringing in money from oversees and into your business, you must know answers to the following questions:
- Why does FIFP approval exist?
- How to obtain FIFP approval in India?
- What documents do you require to complete the procedure?
- What is the FIFP approval fees that you need pay to obtain this permission?
Why does FIFP approval exist?
The industrial sector in India is on the rise, and it’s all due to foreign investment. Yes, it’s true that monetary assistance from Indian nationals can provide ample of assistance to the Indian businesses. However, to unlock India’s true entrepreneurial potential, our enterprises also need foreign support. Read More: International Long Distance Service
The government definitely agrees to this statement, as it in turn introduced Foreign Investment Promotion Board(FIPB), housing it in the Department of Economic Affairs.
As time went on an foreign investment started to get more intertwined with India’s enterprises, the government abolished FIPB.
Instead of keeping a specialized department that worked to promote funding from oversees, the government decided to implement the rules that governed FIPB and integrated them with industry-specific administrative ministries.
For instance, watching over FDI within the telecom sector became the job of Department of Telecommunication.
However, investors still needed an interface to facilitate foreign investment. Thus, the government introduced the Foreign Investment Facilitation Portal. To fully use the capabilities of this website, one needs to register and obtain the FIFB approval.
What is the procedure to acquire approval on Foreign Investment Facilitation Portal?
To obtain the permission to utilize the FIFP portal to its fullest extent, you need to follow the steps as follows:
- Create a user ID: Your first requirement is to obtain a user ID at the FIFP portal. Go to that website, click on “Register as a New User”. Enter your details such as name, Email ID, address, contact number. Click on submit. You’ll then receive a One-Time password on your contact number and Email-ID. Enter it to gain access to the user dashboard.
- Fill the application form: After you reach your dashboard, the first option that you will see is for filling the application form. It entails eight different sections. They are as follows:
- Proposal Details
- Application Details
- Investee activities
- Documents Upload
Enter the requisite information in each of the above sections and when prompted, upload the required documents.
- Submit the application offline: After applying online, download the physical copy of the filled application form. Attach it along with the physical copies of the required documents and submit them to the Department of telecommunication. Read More: Section 8 Company Registration
- Obtain the FIFP Approval: The application will go through the assessment of the Department of Telecommunication. If it’s accepted, you’ll receive the FIFP approval in India.
What are the documents required to complete the approval procedure?
The documents required to complete the approval procedure are as follows:
- Proposal of the company on the company’s letterhead.
- Certificate of incorporation
- Memorandum of Association
- Articles of Association
- Board resolution
- Audited Financial statement of the last financial year
- LLP draft
- LLP agreement
- Income Tax Return of the previous year
- The Identification proof
- Joint agreement with the shareholders
- Copy of relevant FIPB, SIA or RBI approvals.
- Diagrammatic representation of the flow of funds from the investor to the investee
- Address of the promoters, investment managers, contributors
- Comments of Indian partners, or technical & trademark collaborators on the new venture
After you’ve filed the application form, you can monitor its progress via your dashboard.
Note: No fees is required to obtain FIFP approval.
Do you want to facilitate foreign investment in your telecom company? If that’s the case, know how to obtain FIFP approval for telecom by reading this blog.