Concept of FDI

Registration

Differences National Capital

Limitation and Prohibitions

Remittence of Profit

Brazil

-All kinds of FDI are welcome by the Brazilian Constitution

-No prior government authorization, No local participation condition is required -Registered with BACEN

-No government approval required -Activities involving nuclear for remittance of profits abroad, energy, gas, oil when FDI properly registered with Ownership of magazines, BACEN -Foreign Capital may be No newspaper, TV network -Airlines repatriated at anytime -BACEN difference with concession for domestic flights can limit or prohibit remittances of -Real estate and land acquisition on profits and capital repatriation frontier borders -Post office and when serious balance of payment telegraph services difficulties

-Prior authorization is required or in certain cases post-transaction approval - for foreign private Russian Federations goal is to move investors carrying out transactions in towards a market system fully a strategic entity -Prior government integrated into the world economy and approval is also required for public based on private capital investment, foreign investor carrying out both domestic and foreign -Russias transactions to acquire over 25 per new status as WTO member will also cent of a Russian legal entity or to complement its internal economic block decisions of the governing reforms and improve foreign bodies of a Russian company, investment climate towards regardless if it is a strategic or nontransparency and predictability in strategic entity business transactions in the country -Any transaction executed in breach of the legislation of the Russian Federation is deemed null and void

-Strategic Industries: 1. natural resources geophysical processes, geological exploration and recovery -There are no specific restrictions of natural resources in a subsoil on the repatriation of capital block 2. defense weapons and owned by or due to foreign military equipment, radioactive investors or remittance of profits No materials, space and aviation abroad - Expropriation of foreign difference 3. media 4. monopolies certain investment is prohibited by communications and metals Russian legislation, except in companies and several natural exceptional cases of public interest monopolies FDI is limited to some activities, such as space and aviation (25%), oil industry (25%)

Russia

Concept of FDI

Registration

Differences National Capital

Limitation and Prohibitions

Remittence of Profit

-FDI is nowadays recognized by the Indian Government as an important driver of economic growth and development - India has rapidly changed from a restrictive regime for foreign investments to a more liberal one

-FII and FVCI have to be registered with SEBI (Securities Exchange & Board of India) and simultaneously also obtain general permission from the RBI -The Indian company that has received FDI either under the Automatic Route or the Government Route is required to report to the RBI some key information related to the investment

-FDI projects with a total foreign capital of US$ 30 million or above in the State promoted categories have to -Over the past three decades, China has be approved by the State Council shifted from a closed, state-planned Offices -Government offices of the economy to an increasingly open and provinces, the autonomous regions internationally integrated marketplace; and the municipalities are responsible FDI-s are welcomed by the Chinese for review and approval of FDI Constitution projects with a total foreign capital of less than US$ 30 million in nonrestricted categories

-Foreign capital is freely Prohibition of Investment in India repatriated except for FDI under (a) Retail Trading (except single non-repatriate schemes and brand product retailing) (b) Lottery provided that the disinvestment Business (c) Gambling and Betting (d) Business of chit fund (e) Nidhi has been made with the approval of the RBI - BUT Repatriation of company (f) Trading in the capital may be subject to Transferable Development Rights No certain policies related to the sector (TDRs) (g) Real Estate Business or difference or activity - Remittance of profits Construction of Farm Houses (h) abroad is possible, after Manufacturing of tobacco product accomplishment of certain (i) Activities / sectors not opened to formalities Profits retained for private sector investment including more than one year are considered Atomic Energy and Railway re-invested and their remittance Transport (other than Mass Rapid further requires special approval Transport Systems) No government approval or prior -All foreign exchange flows and consent of the SAFE is required for remittance of profits, dividends outward remittances are regulated and bonus abroad, as long as the by the State Administration of FDI has been duly approved and Foreign - Exchange In brief, the the necessary documents are prohibited sectors are: No presented to a SAFE authorized news agencies, broadcasting and difference bank - Dividends cannot be programming, press and repatriated overseas if the losses of audiovisual products arms production and manufacturing previous years have not been fully covered by the company - As a mining and processing of certain general rule, capital repatriation is minerals allowed after the term of business operation

China

India