I am looking for incorporating a company who's main object will include publishing, distributing of entertainment magazines. The promoter is a UK Citizen.
As per the Master circular of RBI on Foreign Investment in India,
FDI in print media is as under
1) Publishing of newspaper and periodicals dealing with news and current affairs : upto 26% under FIPB route. Subject to guidelines issued by Ministry of Information & Broadcasting. (http://www.mib.nic.in)
2) Publishing of scientific magazines/ specialty journals/ periodicals : upto 100% under FIPB route Subject to guidelines issued by Ministry of Information & Broadcasting. (http://www.mib.nic.in)
Will the above investment fall under Automatic Route or FIPB route?
According to me, it will require FIPB approval.
Government approves FDI proposals on the recommendations of FIPB on a periodical basis.On the basis of recommendations of FIPB in its last meeting held on 10.07.2009, the Government has approved 16 foreign direct investment proposals. The details of the proposals are available in the public domain and can be accessed at the website of the Department of Economic Affairs (www.finmin.nic.in).
Government has put in place a liberal and investor-friendly policy on Foreign Direct Investment (FDI) under which FDI up to 100% is permitted on the automatic route in most sectors/ activities. Proposals requiring prior Government approval, which are complete in all respects, are considered by the Foreign Investment Promotion Board (FIPB), an inter-Ministerial body. The proposals are approved or rejected on the basis of the extant policy after inter-ministerial consultations.The list of proposals deferred in the meeting held on 10.07.2009 is available in the public domain and can be accessed at the website of the Department of Economic Affairs (www.finmin.nic.in).