Two approvals, not one
Business Regulatory Approvals in India
Foreign investment approval and sector licensing are separate processes. Clearing one does not clear the other.
GCC business setup specialists
The investment route is not a licence
Businesses sometimes assume that obtaining government approval for foreign investment means they may operate. It does not: the investment approval addresses who may own the company, while the sector regulator addresses whether the company may carry on the activity. A non-bank finance company, an insurance intermediary or a food business each needs its own authorisation, with its own capital and fitness requirements, in addition to the investment route.
- Investment route and sector licence treated as two separate tracks
- Capital and fitness requirements set out for the sector regulator
- Realistic sequencing where both approvals are needed
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
Companies successfully established.
Who regulates what
Sector regulators in India
Each separate from the investment policy.
| Area | Regulator |
|---|---|
| Banking and non-bank finance | Central bank |
| Payments and prepaid instruments | Central bank |
| Securities, funds and advisers | Securities regulator |
| Insurance and intermediaries | Insurance regulator |
| Telecom and internet services | Telecom authorities |
| Food, drugs and standards | Sector authorities |
Regulator remits, licence categories, capital requirements and fitness criteria are set by the regulators and change, and sector licensing is separate from foreign investment approval. Yours are confirmed before any application.
How it works
Establishing what you need
Both tracks, sequenced properly.
Separate the two questions
Which investment route applies to the ownership, and which regulator must authorise the activity. They are assessed independently.
Prepare each application
Investment approval where required, and the sector licence application with its capital, personnel and policy requirements.
Sequence realistically
Because one often depends on the other, the order and the overall timetable are planned rather than assumed.
Typically required
What a sector licence application needs
Capital and management are assessed.
- Detailed business plan and projections
- Shareholding and control structure
- Fitness evidence for promoters and directors
- Minimum capital evidence
- Qualified key management personnel
- Risk and compliance framework
- Anti-money-laundering policies where applicable
- Information technology and security arrangements
- Auditor appointment
- Statutory registrations already obtained
- Regulatory history of the group anywhere
- Net worth certification
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Separation of investment and licensing tracks
- Identification of the correct sector regulator
- Capital and personnel requirements set out
- Licence application preparation support
- Co-ordination with the regulator
- Responses to regulator queries
- Sequencing of both approvals
- Honest view of prospects
Not included, quoted separately
- Regulator fees, paid at cost
- Minimum capital to be held
- Policy and manual drafting, quoted separately
- Recruitment of key management personnel
- Net worth certification by a professional
- Regulator decisions
- Legal representation
- Ongoing regulatory reporting
Verify independently
Official Indian authorities
We file directly with these bodies on your behalf.
Questions
India regulatory approvals — FAQs
Does investment approval let me operate?
No. Investment approval addresses ownership; the sector regulator addresses the activity. Both are needed where the sector is regulated.
Which sectors are the most demanding?
Non-bank finance, payments, insurance and securities activity all carry substantial capital and fitness requirements and lengthy assessments.
How long does sector licensing take?
Months, and often longer than the investment approval. Where both are needed the overall timetable should be planned from the start.
Can I operate while an application is pending?
No. Carrying on a regulated activity without authorisation is a serious matter with consequences for the directors.
What if the application will not succeed?
We say so before you spend on it, and explain what would need to change in capital, management or model.
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