A foreign company can invest in India either as a wholly owned subsidiary or through a joint venture. Foreign Direct investment to India is governed by the Foreign Direct Investment Policy (FDI) and the Foreign Exchange Management Act (1999) FEMA.

Automatic Approval Route:

FDI in sectors or activities to the extent permitted under automatic route does not require any prior approval either by Government of India or Reserve Bank of India (RBI). The investors are only required to notify the regional office concerned of RBI and file the required documents with in 30 days if the investment.