The Foreign Investment and Technology Transfer Act, 2049 (1992

Section 3: Permission to be obtained

1)      Permission of the Department shall be required to be obtained for foreign investment or technology transfer.

2)       A person desiring to avail the foreign investment or technology transfer shall be required to make an application to the Department in the prescribed form along with the prescribed particulars for obtaining permission in that behalf.

3)       If an application is made pursuant to Sub-section (2) the Department shall, in the case of an industry with fixed assists up to five hundred million rupees, itself, and in the case of an industry with fixed assets in excess thereof, in accordance with the decision of the Board, grant permission within thirty days from the date of application. The Department shall communicate the decision made in regard to such permission to the applicant.

4)      Notwithstanding anything contained in Sub-section (1) and (2) no permission shall be granted for making foreign investment in the industries set forth in the Annex. Provided that permission may be granted for the transfer of technology in such industries.

Requirements/ Supporting Documents

1.       Application form with Rs 10 postage stamp

2.       Three copies of Project Report

3.       Three copies of Joint Venture Agreements ( there are more than one investors)

4.       Notarised Copy of passport of foreign party

5.       Citizenship certificate of local party

6.       Bio data of the foreign investor with photograph in case of an individual and or company profile of the investing company in case of a company

7.       Certificate of Incorporation of foreign and local investing company

8.       Financial credibility of the foreign party issued by a bank of home country or by a local bank. In case of a local bank, the account has to be opened at least one month prior to the application date.