Foreign Investment Facilitation Portal
Foreign Investment Facilitation Portal (FIFP)
What is FIFP & its Responsibilities?
Foreign Investment Facilitation Portal (FIFP) is an inter-ministerial body that holds the responsibility to process and makes recommendations to Foreign Direct Investment (FDI) policies, FEMA regulations and to 11 notified sectors for Government approval.
FIFP approval is required for companies that do not qualify for automatic approval.
The FIFP shall regulate and recommend FDI policies, provides significant inputs, press notes and guidelines drafted by the Department for Promotion of Industry and Internal Trade (DPIIT).
Though FIFP regulates the FDI policies, its primary focus shall be to increase the FDI investments. These investments shall have to be cleared by the FIFP to initiate operation in India.
Any investments made above Rs.5000 crore shall be considered and approved by the Cabinet Committee on Foreign Investment (CCFI). However, investments made less than Rs.5000 crore shall be considered and approved by the Ministry of Commerce.
Why FIFB got replaced by FIFP?
FIFP was initially termed as Foreign Investment Promotion Board and later changed to FIFP to increase transparency and to introduce a Standard Operating Procedure (SOP) to administer the application process.
What is the Goal of FIFP?
The goal of FIFP is to negotiate with international firms, create a platform for investments and create a simpler approval process for FDI investments in selected areas.
Objectives of FIFP
- To increase the FDI investments
- To create transparency between the departments for the approval process
- Increase the investment process through investment promotion activities for national and international companies and Non-Resident Indians (NRIs)
- To digitalise the communication and approval process
- Inform all the FDI policy changes to the investors
Notified Sectors that Require FIFP Approval
The following are the 11 sectors that require approval for investments from international companies:
|Mining||Ministry of Mines|
|Defence||Department of Defence Production, Ministry of Defence|
|Broadcasting||Ministry of Home Affairs|
|Print Media||Ministry of Information and Broadcasting|
|Civil Aviation||Ministry of Civil Aviation|
|Satellites||Department of Space|
|Telecommunication||Department of Telecommunications|
|Private Security Agencies||Ministry of Home Affairs|
|Trading (Single, Multi brand and Food Product Retail Trading)||Department of Industrial Policy and Promotion, Department of Economic Affairs|
|Banking (Public and Private)||Department of Financial Services|
|Pharmaceuticals||Department of Pharmaceuticals|
Standard Operating Procedure (SOP)
The key objective of SOP is to enable smooth functioning of FIFP.
SOP enables FIFP to reduces paperwork as filing and transfer of applications are enabled online. Standard Operating Procedure act as guidelines for the above said 11 notified sectors for FDI approval process.
For enterprises that not require or does not fall under the category of specific sectors, the FDI approval process shall be administered by the DIPP and the Ministry of Home Affairs.
The following are the enterprises that shall be administered by the DIPP and the Ministry of Home Affairs:
- Non-Resident Indians (NRIs)
- Export Oriented Units (EOU
- Applications related to the issue of equity shares related to import of capital goods, machinery or second-hand equipment
- Applications related to the issue of equity shares related to pre-incorporation expenses
- Investments from Pakistan and Bangladesh should be cleared by FEMA, FDI policy and security guidelines as stipulated by the Ministry of Home Affairs
Step by Step Process of Registering with FIFP
To submit the application online with FIFP, the enterprise must register with FIFP. The process for registering are as follows:
Step 1: Open the Foreign Investment Facilitation Portal web portal
Step 2: Click on ‘Registration’
Step 3: Fill with valid credentials
Step 4: Enter the OTP
Step 5: Create a User Name and Password
Step 6: Log in to Foreign Investment Facilitation Portal web portal using the User Name and Password
Step 7: After successful login, click on Comprehensive Corner>Forms
Step 8: Click on ‘Licence (IL-FC). (The applicant can save the draft of the application form after each section is completed. To re-open the application form, the applicant shall use the application number to continue)
Step 9: Attach all the relevant documents as required by Annexure-I
Step 10: After submitting the application, the User shall receive an intimation to submit the physical copy of the application to the concerned authority. (The applicant must submit the hard copy to the relevant authorities within 10 days of the application submitted online).
Step 11: For Security clearance, fill the self-declaration form and attach Annexure-II. Download the form by FIFP web portal> Comprehensive Corner>Forms>Download the security clearance form
Scroll Down for IL-FC Form
Scroll Down for Security Clearance FormFIFP Security Form
- Detailed Report on the Proposal
- Copy of Board Resolution, Certificate of Incorporation, Article of Association and Memorandum of Association
- Audited Financial Statements and Income Tax returns, approved by CA
- Agreement and draft of LLP
- Copy of agreement of shareholder, joint venture, transfer of technology, trademark and brand assignment
- Copy of past FIFP or RBI approvals, if any
For USA Company Registration, click here