Legal Environment and

International Projects

Presented By;
Vikash Kishore
 Introduction

 Legal aspects are an indispensable part of a

successful business environment in any country.
 They reflect the policy framework and the mind set
of the Governmental structure of that country.
 They ensure that every company is functioning as
per the statutory framework of the country.
 Every enterprise must take into account the legal set
up while framing the basic aims and objectives of
its company.
 Bilateral Investment Promotion &
Protection Agreement
 Many countries have entered into this act in order
to increase the capital inflows.
 Protection and Promotion of investments of
related countries
 Government of India has already signed this
agreement with 58 countries out of which 49
countries are into force.
 Agreements have the standard elements and
provide legal basis to the investors.
 Foreign Exchange Management Act
 All transactions that include foreign exchange are regulated
by the Foreign Exchange Management Act (FEMA)
 It has enacted to facilitate external trade and payments and
to promote the orderly development and maintenance of
foreign exchange market.
 Under the Act, Reserve Bank of India (RBI) has been
authorised to frame various rules, regulations and norms
pertaining to overseas investments in consultation with the
Central Government
 It applies to all branches, offices and agencies outside India,
owned or controlled by a person resident in India.
 Foreign Investment Promotion
Board (FIPB)
 Foreign Investment Promotion Board is the
competent body to consider and recommend foreign
direct investment (FDI), which do not come under the
automatic route.
 It normally takes 30 days for an approval.
 It consists of :
- Secretary, Department of Economic Affairs -- Chairman
- Secretary, Department of Industrial Policy & Promotion -- Member
- Secretary, Department of Commerce -- Member
- Secretary, (Economic Relation), Ministry of External Affairs -- Member
 Foreign Portfolio Investments

 Only FII’s registered with SEBI can invest through

the stock market.
 Nominee companies are allowed in this category.
 Each investor can only invest up to 10% and the
total investment of any foreign company could not
exceed 24% (Paid up capital).
 Special Economic Zone Act
 In order to promote the trade and to create job opportunities .
 Government offers many incentives to develop SEZ:
1. Exemption from min. alternate tax (Income Tax Act.)
2. Exemption from Central Sales Tax and Service Tax.
 Incentives and facilities are also available to persons setting up units in
SEZ include:
1. Duty free import/domestic procurement of goods for development, operation and
maintenance of SEZ units.
2. External commercial borrowing by SEZ units up to $500 million in a year without any
maturity restriction through recognized banking channels.
Thank You!!!!