Investment Consultancy

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UnifiCloud analyst provides research and information to help traders, fund managers and stock brokers make decisions about investments. The information we provide ensures investment portfolios are well managed and that potential investment opportunities are highlighted.

UnifiCloud conducting due diligence on companies and industries by researching, reading financial statements and market data. We also analysing financial information relating to specific companies, e.g. company results, profit and loss, balance sheet and cash flow statements to determine how an organisation is positioned to deliver for investors. We keeping up to date with market developments, new investment products and all other areas that can affect the markets, e.g. movements in the economies of relevant countries.

We consider how the economic implications of factors such as natural disasters, weather etc. might affect the performance of companies, funds , financial modelling and projection.

UnifiCloud drafting and writing research reports for fund manager or client use meeting with and providing information to fund managers, this might include, summaries of research, investment ideas, key events from the proceeding day as well as key drivers for the day ahead. Our recommendations to fund managers, being able to position ideas and articulate to the fund manager about the risk or payoff for each recommendation and ensuring that all compliance regulations are met.

 

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WHY INDIA?
Major initiatives, policy changes and a slew of reforms have put India on the global industrial map as one of the fastest growing economies as well as one of the most attractive investment destinations in the world.

REASONS TO INVEST

Fastest Growing Economy
•One of the fastest growing economies in the world, India has sustained recent global downturn and also emerged as one of the leading nations in terms of GDP growth rate and FDI inflows
•India is likely to grow at consistently higher rates (>7%) and retain its position as one of the fastest growing economies till 2020 (Source: International Monetary Fund)
•In recent years, India has emerged as one of the most attractive destinations not only for investments but also for doing business, evident by its significant jump by 12 places in Ease of Doing Business rankings between 2014 and 2015 (Source: Ease of Doing Business, World Bank)
•India accounted for 1.7% of global merchandise exports in 2014, compared to 0.8% in early 2000. Exports have increased at a Compound Annual Growth Rate of 11.6% in FY 2010 to USD 310 billion in FY 2015 (Source: EXIM Bank Catalyzing India’s trade and investment, July 1, 2015; WTO International Trade Statistics 2015)
•Foreign exchange reserves have been at a comfortable level over recent years. Currently, India’s reserves stand at USD 371.279 billion (Source: Reserve Bank of India as on 9th September, 2016)
•India ranks amongst the top 10 FDI destinations globally - surpassing USD 50 billion in FY 2015-16. India has shown a growth of 46% in FDI equity inflow and 37% in overall FDI inflow since the launch of Make in India initiative (Source: Ministry of Commerce, Government of India)
•India’s fiscal deficit stood at 3.9 % of GDP (USD 81.85 billion) in FY 2015-16 and envisaged to come down to 3.5% of GDP by the end of FY 2016-17 (Source: https://data.gov.in/)
Demographic Advantage
•With 356 million 10-24 year-olds, India has the world’s largest youth population (Source: UNFPA, The Power of 1.8 billion, 2014)
•The proportion of working age population in India is likely to reach more than 64% by 2021, with a large number of young persons in the 20-35 age group (Source: Economic Survey 2014)
•The average age of 125 billion persons will be 29 years by 2020 (Source: Economic Survey, 2014)
•If India continues its recent growth trend, average household incomes will triple over the next two decades and it will become the world's fifth largest consumer economy by the year 2025 (Source: The Bird of Gold, McKinsey Report)
•India is expected to be the largest supplier of university graduates in the world by 2020 (Source: Morgan Stanley Research)
•India has 712 university level institutions, 36,671 colleges along with 11,445 standalone institutions (Source: Educational Statistics at a Glance 2014, Ministry of Human Resources Development)
Favourable Policies
•Major FDI policy reforms have been made in a number of sectors, such as defense, construction development, pensions, broadcasting, pharmaceutical and civil aviation
•Foreign investors can invest in India either on their own or as a joint venture, as may be required in a few sectors
•Barring a few reserved sectors, 100% FDI is allowed through the automatic route in several sectors, without the need of government approval, namely Automobile, Food Processing, Construction etc.
•In the Union budget 2016-17, the government has emphasized the need to increase manufacturing as a percentage of GDP
•The Central and State governments have sector specific policies, incentives and subsidies to promote manufacturing
•Increased allocation in the budget to improve infrastructure, which is critical in facilitating future growth.

FDI AT A GLANCE

SECTORS UNDER AUTOMATIC ROUTE (WITH CONDITIONS)
Up to 100%
• Agriculture
• Plantation
• Mining – Metal & non-metal ores; Lignite & Coal
• Manufacturing
• Broadcasting Carriage Services (Teleports, DTH, Cable Networks, Mobile TV, HITS)
• Broadcasting Content Service ¬– Up-linking of Non-‘News & Current Affairs’ TV Channels/ Down-linking of TV Channels
• Airports – Greenfield; Brownfield
• Airport Transport Services – Non-Scheduled; Helicopter/Seaplane Services
• Ground Handling Services
• Maintenance and Repair Organizations; Flying and Training Institutes; Technical Training Institutions
• Construction Development
• Industrial Parks – New and Existing
• Trading – Wholesale; B2B e-commerce
• Duty Free Shops
• Railway Infrastructure
• Asset Reconstruction Companies
• Credit Information Companies
• White Label ATM Operations
• Non-Banking Finance Companies
• Pharma – Greenfield
• Petroleum & Natural Gas ¬– Exploration Activities of Oil and Natural Gas Fields

Up to 49%
• Petroleum Refining by PSUs
• Infrastructure Company in the Securities Market
• Commodity Exchanges
• Insurance
• Pension
• Power Exchanges

SECTORS WHERE GOVERNMENT APPROVAL IS REQUIRED
(as on July 8, 2016)
Up to 100% (Government approval – up to 100%)
• Mining and mineral separation of Titanium bearing minerals and ores
• Publishing/printing of scientific and technical magazines/specialty journals/periodicals
• Publication of facsimile edition of foreign newspapers
• Satellites - establishment and operation
• Food product retail trading

Up to 100% (Government approval – beyond 74%)
• Pharma – Brownfield

Up to 100% (Government approval – beyond 49%)
• Defence
• Air Transport Service - Scheduled and Regional Air Transport Service
• Telecom Services
• Trading - SBRT

Up to 74% (Government approval – beyond 49%)
• Banking - Private Sector
• Private Security Agencies

Up to 51% (Government approval – up to 51%)
• Trading - MBRT

Up to 49% (Government approval – up to 49%)
• Broadcasting Content Service
1. FM Radio
2. Uplinking of news & current affairs TV Channels
• Investment by Foreign Airlines

Up to 26% (Government approval – up to 26%)
• Print Media - Publication of Indian editions of foreign magazines dealing with news and current affairs
• Print Media - Publishing of newspaper and periodicals dealing with news and current affairs

Up to 20% (Government approval – up to 20%)
• Banking - Public Sector

SETTING UP BUSINESS IN INDIA

FOREIGN DIRECT INVESTMENT IN INDIA
• Government of India has permitted foreign investment in almost all sectors with a few exceptions, for instance in sectors such as atomic energy, lottery business, and chit funds etc. where FDI is completely prohibited.
• For other sectors, FDI is either 100% permitted or partially permitted.
• In the permitted sectors, subject to sectoral caps, FDI may be via 2 routes:
1. Automatic route or
2. Government route i.e. where prior approval of Government of India is required.
• Equity inflow of an below 0.77 billion - Minister of Finance (in charge of FIPB)
• Equity inflow of more than 0.77 billion - Cabinet Committee on Economic Affairs (CCEA)
• Cases referred to CCEA by FIPB - CCEA

ENTRY OPTIONS
Foreign Investors can commence business in India as:
An Indian Company:
• Joint Venture as (i) Private Limited or (ii) Public Limited Company, s.t. Companies Act, 2013
• Wholly owned subsidiary permissible in sectors where 100% FDI is permitted

A Foreign Company*:
• Liaison Office to represent the parent company in India
• Branch Office activities such as Export-Import of goods; research, consultancy etc.
• Project Office activities as per contract to execute project

Limited Liability Partnership:
• Subject to provisions of LLP Act, 2008
• FDI permitted under the automatic route in LLPs operating in sectors/activities where 100% FDI is allowed, through the automatic route and there are no FDI-linked performance conditions
*Incorporate company in India s.t. sectoral caps and requisite approvals
(Detailed RBI guidelines regarding establishment of LO/BO/PO: https://rbi.org.in/Scripts/NotificationUser.aspx?Id=10398&Mode=0)

LOCATION IDENTIFICATION
Availability of Land:
Land in India is a State subject. A number of options are available for setting up a unit for which the investor may get in touch with the respective State Industrial Corporations (IDCs) with their business plans and desired land size. The applications are then reviewed and decided based on merit.

Land Allocation:
• Special Economic Zones/ Software Technology Parks, Sector-specific Clusters
• National Investment Manufacturing Zones (NIMZ)
• Private Land - as per FDI policy and State-specific regulations
• Industrial Parks/ Zones/ Areas – Country/Industry-specific or Multi product

Invest India, the national level investment promotion & facilitation agency, provides facilitation services for obtaining information on land, arranging location visits for investors and connecting them to state IDC’s/SEZ/NIMZ’s etc.

APPROVALS AND CONSTRUCTION - SETTING UP BUSINESS AS AN INDIAN COMPANY
Investing in India
1. Registering with RoC, India
2. Licenses and Permits:
o Land: Application to respective State Infrastructure Corporation/ DIC/ SIDC/ SSIDC
o Environment: Application to the Secretary, Ministry of Environment and Forests, New Delhi
o Building: Building Completion Certificate: Application to Town and Country Planning or other local bodies
o Power: Application to State Electricity Distribution Company for sanction of power supply for LT/ HT or Extra High Tension

connection as applicable
o Water: Application to SIDC /SIPB or Central Ground Water Commission depending on source
o Fire: Provisional Fire Safety Approval from State Fire and Safety department; final approval by local State authority
o Tax: VAT/ Service Tax/Professional Tax/Central Excise registration

TAXATION OVERVIEW
Overview of Regulatory Compliances
1. Service Tax
o Levied on services
o Monthly/Quarterly and Half yearly reporting as applicable (e.g. to company/society/individual/partnership etc.)
2. VAT/CST
o Levied on Sale of Goods
o Tax on turnover; monthly tax and VAT annual return as applicable
3. TDS
o Applicable to salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. wherein tax is deducted by the payer and is remitted to the Government on behalf of the payee. TDS is managed by Central Board of Direct taxes

(CBDT)
4. Income Tax Filing
o Filing of Income Tax is mandatory for eligible individuals/companies etc. for the applicable assessment year
5. Custom
o Levied on all goods imported into India and few goods exported from India
6. Excise
o Levied on Excisable Goods manufactured in India

WINDING UP OF A COMPANY
Winding up/liquidation represents the last stage in a company’s life. It’s a proceeding by which a company is dissolved. The company’s assets are disposed of, the debts are paid off out of the realised assets and the surplus, if any, is then distributed among the members in proportion to their holdings in the company.
1. Winding up of JV/Wholly owned subsidiary/LLP: Winding by Tribunal or Voluntary Winding up
Further details available at: http://www.mca.gov.in/MinistryV2/chapter13.html
2. Winding up of LO/BO/POs: Requests for closure of BO/LO/PO and for remittance of winding up proceeds need to be submitted to the designated AD Category-I bank along with requisite documents such as Copy of RBI approval; auditor’s certificate; etc.
Further details available at: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10398&Mode=0#AN

INVEST INDIA FAQS
What is Invest India?
Invest India is the official investment promotion and facilitation agency of the Government of India, mandated to facilitate investments into India. It is envisaged to be the first point of reference for potential investors.
The team of domain and functional experts provide sector- and state-specific inputs, and handholding support to investors through the entire investment cycle, from pre-investment decision-making to aftercare. The team assists with:
• Market strategy
• Business plan advisory
• Location identification
• Expediting regulatory approvals
• Facilitating meetings with relevant government and corporate officials
• Initiating remedial action on problems faced by investors

All facilitation and hand-holding support to investors under the Make in India programme is being provided by Invest India.
Who are the Stakeholders of Invest India?
Invest India is promoted by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry (Government of India), the State Governments of India and the Federation of Indian Chambers of Commerce & Industry (FICCI).

Does Invest India have any Foreign Associations ?
Invest India has signed Memoranda of Understanding/Framework for Investment Cooperation with select Investment Promotion Agencies in select countries. These are:
JETRO (Japan), Invest in America (USA), UK Trade & Invest and UK India Business Council (UK), Invitalia (Italy), UBIFrance & Invest in France (France), KOTRA (South Korea), BOI Mauritius (Mauritius), Czech Invest (Czech Republic), Kaznex Invest (Republic of Kazakhstan), Saudi Arabian General Investment Authority (Saudi Arabia).
Invest India is also working closely with Indian missions abroad, foreign missions in India and bilateral & multilateral agencies.

Does Invest India has any International Offices or Representatives?
Invest India functions out of its Headquarters in New Delhi, India. However, for any investment related queries you may get in touch with the commercial representatives of the Indian Embassies/Consulates in your country.

Does Invest India charge for the services?
No. Invest India is a Section 8, Not-For-Profit organisation. The services provided are completely free of charge.

What are the services offered by Invest India?
The team of domain and functional experts provide sector- and state-specific inputs, and handholding support to investors through the entire investment cycle, from pre-investment decision-making to aftercare. Invest India assist with:
• Market strategy
• Business plan advisory
• Location identification
• Expediting regulatory approvals
• Facilitating meetings with relevant government and corporate officials
• Initiating remedial action on problems faced by investors

Invest India's offers a gamut of services including:
1. Assistance in setting up business
o Working with investors for getting approvals
o Organizing meetings with government departments
o Identifying joint venture partners with the help of Chambers of Commerce & Industry associations
o Getting necessary clarifications from concerned government departments
o Planning investor visits in coordination with central and state government agencies

2. Detailed business information
Invest India offers potential investors information about India's economic and business environment:
o Main economic indicators
o Facts and clarifications on India's policies, rules and regulations
o Information on business opportunities in the focus Make In India sectors
o Taxation and legal aspects
o FDI policy clarifications
o Forms of business structure
o Stat specific investment information
o Incentives of central & state government
o Seeking clarifications from Reserve Bank of India (RBI), government departments, ministries and state governments

3. Site visits to India
Invest India leverages its close working relation with state industrial development corporations (IDCs), state investment promotion agencies, private industrial zone promoters to facilitate site visits and location assessment. Assistance is provided with the following:
o Identifying potential locations for projects in conjunction with state IDCs
o Accompanying investors for visit to select locations
o Organizing meetings with state IDCs/private zone developers

4. Aftercare services
Invest India aftercare services include the following:
o Advisory services for expansion of business operations
o Mediating between the government bodies (local authorities and state administration) and investor
o Provision of feedback from investors to government authorities
(Source:Indian Government)