The Applications are to be made in form FNC and are considered by the RBI under two routes determined by the degree of Foreign Direct Investment (FDI):
- The Reserve Bank Route: taken when the principle business of the foreign company falls under sectors where 100% FDI is permissible.
- The Government Route: when the sectors do not permit 100% FDI investment. The RBI considers applications under this in consultation with the Ministry of Finance of India.
- Track Record: For a BO a company will require a profit making track record in the in the immediately preceding five financial years in the home country.
- Net Worth: “a total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement Certified by a Certified Public Accountant or any Registered Accounts Practitioner”. The net worth has to be equal to or more than USD 100,000.