To comply with the conditions for automatic route investment

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Initial Setup only

  • Filing and Maintenance Requirements

    100% foreign direct investment (“FDI”) through the automatic route is permitted in companies carrying on the
    business of “Courier services for carrying packages, parcels and other items which do not come within the ambit of
    the Indian Post Office Act, 1898 and excluding the activity relating to the distribution of letters. For the “nonscheduled
    air transport service/ non-scheduled airlines, chartered airline, and cargo airlines”, FDI is allowed up to
    74% (49% under the automatic route, and beyond that up to 74%, one needs the prior approval of the FIPB).

  • Penalty

    • The liability for violation of provisions of the FDI Policy and FDI Master Circular are governed by the FEMA and is of civil nature in the form of imposition of penalties.

    • The imposable penalty can be up to 3 (three) times the sum involved in a contravention where the amount is quantifiable.

    • For offences where the sum involved is not quantifiable, a penalty up to Rs. 200,000 (Rupees Two Hundred Thousand only) can be imposed.

    • Further, where a contravention is of continuing nature, the adjudicating authority concerned may impose an additional penalty of up to Rs. 5,000 (Rupees Five Thousand only) per day for the period of continued contravention.

    • The adjudicating authority can also order confiscation of any currency, security or any other money or property in respect of which the contravention has taken place.

    • Further, in the event of the defaulter failing to make full payment of the penalty imposed on him within a period of 90 (ninety) days from the date on which notice for payment of such penalty is served on him, such defaulter is punishable with civil imprisonment under the provisions of FEMA.

  • Application Guidelines / Responsible Persons / Comments

    Not relevant