An Overview of FIFP Approval for Telecom
Foreign Investment Facilitation portal is developed by the Government of India to facilitate and regulate the flow of Foreign direct investments (FDI) in the country. FIFP approval is essential for those business entities that do not qualify for FDI approval automatically. The Telecom sector is one of such 11 sectors identified by the government that require FIFP approval. With the introduction of FIFP approval, the government is able to attract a heavy inflow of FDI in this sector while keeping the entire process simple and transparent.
Benefits of the Foreign Investment Facilitation portal (FIFP)
The government of India developed Foreign Investment Facilitation portal for:
- Increase the FDI Investments: The old FDI approval process was tedious and complicated, in order to simplify the process and invite a large number of foreign direct investments, the government has introduced FIFP.
- Transparency of process: FIFP has enabled transparency between various departments, the ministry and the applicant. The applicant can view the entire process and status of the application in the portal.
- Promotional activities: FIFP portal shall allow the government to conduct promotional activities to attract participation from both domestic and international companies and Non-Resident Indians (NRIs).
- Digitalisation of FDI Process: The introduction of the FIFP portal has shifted the entire process for FDI approval online for certain sectors. The process of digitalisation has made it easier for companies to seek approval from the government.
- Dissemination of Information: It is easier to inform all the stakeholders about any changes in the policy or regulations via the FIFP portal. The timely dissemination of vital information by the government can save applicants a lot of time and money.
Regulatory Bodies involved in granting FIFP Approval
Documents required for FIFP Approval for Telecom
The following Documents are required for FIFP approval for telecom:
Procedure for Registration of FIFP approval
The applicant must complete the following steps to complete the procedure for FIFP Approval
- Registration: The applicant has to first register with the Foreign investment Facilitation portal's website. Here the applicant needs to fill in the relevant details.
- Account Creation: The applicant will receive an OTP through the registered mobile number/ email id. Now the applicant must log in to the portal and create a new username and password for their account.
- Online filing of application: once logged in the applicant must access the Comprehensive corner tab and then go to the 'forms' sections. From here the applicant needs to click on the License (IL-FC) and the applicant has to provide relevant information regarding the business. The applicant can save his progress at various stages and reopen the form by using the application number.
- Submission of Documents: Next, after filling in the relevant details, the applicant has to upload all the Documents as mentioned in the Documents section as and when prompted. It is better to collect all the Documents before filing the application as the application cannot be forwarded unless all information is provided. With this, the online procedure is completed.
- Submission of physical copies: After completing the online process, the portal shall intimate the applicant about the date to submit the physical copy of the FIFP application to the concerned authority (in this case the department of telecommunications). The application has to be submitted within 10 days of the online submission of the form.
- Security Clearance Form: The applicant must fill in a self-declaration form, which can be found under the FIFP web portal tab-> Comprehensive corner-> forms-> Security clearance form. This form must be attached to obtain a security clearance.
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How will Corpbiz assist you in obtaining the FIFP Approval for Telecom?
FIFP approval may not look as simple as it seems, sign up for Corpbiz’s FIFP Consultancy services.
How will Corpbiz assist you in obtaining the FIFP Approval for Telecom?
FIFP approval may not look as simple as it seems, sign up for Corpbiz’s FIFP Consultancy services.
Frequently Asked Questions
All the companies in sectors that do not qualify
for automatic approval need FIFP approval. The FIFP portal lists a total of eleven such
sectors. Without FIFP approval no FDI can be brought into these companies.
The application for FIFP application is a
completely online process, however, the applicant has to submit hardcopies to the
department for the purpose of verification.
A user can only submit one application per login
id. So in case a person wants to do multiple registrations then they have to create
multiple Ids.
The application for FIFP is quite long.
Therefore the portal allows the user to save the application as a draft at various
stages. But once the application is submitted to FIFP then the user shall not be allowed
to make any changes.
No fee is required to be paid for filing an
online application at the FIFP portal.
After filing the online application, the user
has a total of 10 days to submit the hard copies of the Documents to the
concerned authority. If the applicant fails to honour this deadline, then his
application shall stand rejected.
The user can withdraw the FIFP application
before its submission to the competent authority. To withdraw the proposal the applicant
has to select the withdraw option from the menu tab of the account. Here the applicant
has to upload a pdf Document stating the reasons for withdrawal and this must be
duly attested by the company.
