FIFP Approval for foreign investment in telecom became a “buzzword” after the Government of India, after realizing the importance of Telecom Sector in the country, approved 100% of Foreign direct investment into the telecom sector via the automatic route. Such a move has taken many stakeholders of this industry by surprise.
For starting entrepreneurs, this move represents an opportunity that they cannot let go. So, if count yourself among one of them, and want to maximize investment in your telecom company, read this blog carefully.
Importance of Foreign Direct Investment in the Telecom Sector
It was a surprise to many because telecom sector is one of the industry domains the governments deems to be too risky to be intruded by foreign elements due to concerns about national security. However, when we brush our paranoia aside, following are the reasons why FDI in telecom is essential: Read More: NBFC License
Increase in employment
Increase in employment is one of the major advantages of FDI. As the foreign investment increases, so does the manufacturing and the need of a new workforce. As a direct result of that, employment takes a rising stride. Whether it’s matter of white collar or blue collar jobs, opportunities increase when investments are involved.
Development of the human research in foreign investment
Foreign Direct Investment makes it affordable for a telecom company to invest in the up-skilling of its workforce. Right now, even though we are seeing a rise in courses for upgrading the current skill level, no one is incentivized to do so because the high fees involved. With Foreign Direct Investment, a telecom company can step forward and get its employees up-skilled without worrying about the overhead expenses.
Increase in development of the backward regions in the country
For a developing country such as India, FDI is beneficial because of the transformation it can indirectly bring to the backward regions.
Increase of competition in the market
Getting Foreign Direct Investment in telecom sector is not an easily accomplished endeavour. The aspirant has to step up its game, provide a service that people yearn for and dip its toes into modern technology in a way that hasn’t been done before. Simply put, providing better services is the race and foreign direct investment becomes a price. Such a competitive spirit can only be invigorated by the prospect of foreign investment.
Such important developments that investment can bring has motivated the government to formulate regulations that led to the creation. Read More: Corporate Agent License
Foreign Investment Facilitation Portal: Your key to increase investment in India
The government is inclined to provide more room for the foreign direct investment in the telecom industry, but that doesn’t mean that an approval of some sort is not required. Thus, in order to maximize investment for your telecom company, you have to mandatorily obtain FIFP approval for your company.
Following are the documents that you need to get started:
- Article of Association of your telecom company
- Memorandum of Association of your telecom company
- Certificate of incorporation
- Copy of Board resolution approving the Foreign direct investment
- Telecom license pertaining to your telecom business
- Following documents if they are applicable
- Copy of the agreement with the shareholders
- Joint venture agreement
- Agreement for transfer of technology
- Trademark assignment document
- Brand assignment document
Once you’ve gathered the aforementioned documents, follow the steps below to get the online FIFP approval for telecom:
- Visit the FIFP portal
- Register as a new user
- Login
- Select “Telecommunication” as your industry
- Enter the required details
- Submit the application form
Within 10 days after you’ve submitted the application, you’ll be given the answer whether your bid for investment is approved or not. If it is, you’ll get a notification that also specified the limit of foreign direct investment you can have in your company. Other Related Content: Benefits of NBFC License
Fortunately, as per the order issued on 15th September 2021, 100% of foreign direct investment is approved for telecom via the automatic route.
This blog unveils the process of how to obtain maximum investment for your telecom company. Read to know how you can obtain investment for a company whose sector is considered one of India’s biggest economic pillars.
