Hello all.
I am in the process of forming a new Pvt. Ltd in India and the Ltd wishes to produce a horticultural food product. As a result of this forum's excellent advice, I understand from the relevant Master FEMA guidelines issued by the RBI that Foreign investment in agricultural and plantation activities is prohibited.
However,
1. can this new company contract another Indian organisation to grow the raw plant material, sell the harvest to us and we produce the marketable products from this (washing, drying, milling, packaging, quality control, marketing and so on - but NOT growing)?
2. Is it permitted to have direct foreign investment in the production facility of these products?
3. Is foreign investment permitted in the infrastructure to facilitate the growing of the product (water, electricity, fencing, security, transport)?
4. Can the Ltd manage the payroll for the growers? (Pay farm workers, pay irrigation, electrical, fencing, tractor and lorry contractors?
5. Lastly, can the company have foreign shareholders and directors - alongside Indian shareholders and directors?
Sources and references with replies will be greatly appreciated! I'm trying to learn more, after all.
Kind Regards,
Joe
