fipb.gov.in Apply for Collaboration & Industrial Licence : Foreign Investment Promotion Board

Organization :Foreign Investment Promotion Board
Facility : Apply For Foreign Collaboration & Industrial Licence

Home Page :http://www.fipb.gov.in/Default.aspx
Download here :www.statusin.in/uploads/5411-il-form.docx

Apply For Foreign Collaboration & Industrial Licence :
General :
** Application is to be submitted to Secretariat for Industrial Assistance, Department of Industrial Policy & Promotion, Ministry of Industry, Udyog Bhawan, New Delhi with 9 copies of both the application and forwarding letter.
** Applicants are required to take care in filling up their application properly and completely.
** The application form should be duly signed and the designation/authority of the person signing the application should be clearly shown.
** Only the relevant part of the application form should be used. General information is to be furnished by all applicants. Part `A’ is to be filled by entrepreneurs/investors applying for grant of approval for foreign collaboration. Part `B’ is to be used for obtaining Letter of Intent/Industrial Licence. Part `A’ and Part `B’ are to be filled in case of composite proposals involving foreign collaboration and industrial licensing.
** Application involving grant of Industrial Licence shall be accompanied by a crossed Demand Draft for Rs. 2500/- drawn on the State Bank of India, Nirman Bhawan, New Delhi in favour of the “Pay & Accounts Officer, Department of Industrial Development, Ministry of Industry, New Delhi”.

Foreign Investment :
** Approval will be given by the Reserve Bank of India for direct foreign investment upto 50/51/74 per cent foreign equity in high priority industries (Annex III, Annex III Part `A’, Part `B’ and Part `C’). There shall be no bottlenecks of any kind in this process.
** The import of components, raw materials and intermediate goods, and payment of know-how fees and royalties will be governed by the general policy applicable to other domestic units.
** Other foreign equity proposals, including proposals involving 50/51/74 per cent foreign equity which do not meet the criteria under (i) above, will continue to need prior clearance. Foreign equity proposals need not necessarily be accompanied by foreign technology agreements.
** To provide access to international markets, majority foreign equity holding upto 51 per cent equity will be allowed for trading companies primarily engaged in export activities. While the thrust would be on export activities, such trading houses shall be at par with domestic trading and export house in accordance with the Import-Export Policy.
** For increase/induction of foreign equity in the existing company, the request should be supported by a Board Resolution of the Indian Company

Foreign Technology Agreements :
** Automatic permission will be given by the Regional Offices of the Reserve Bank of India for foreign technology agreements in high priority industries (Annex III, Annex III Part `A’, Part `B’ and Part `C’) upto a lumpsum payment of US $ 2 million, 5% royalty for domestic sales and 8% for exports, subject to total payment of 8% of sales over a 10 year period from date of agreement or 7 years from commencement of production. The prescribed royalty rates are net of taxes and will be calculated according to standard procedures.
** In respect of industries other than those in Annex III, Annex III Part `A’, Part `B’ and Part `C’, automatic permission will be given subject to the same guidelines as above.
** All other proposals will need specific approvals under the general procedures in force.