1. Eligibility to Receive Foreign Investment

• A private limited company can raise foreign direct investment (FDI)
  
• Allowed under automatic route in most sectors, meaning no prior government approval is needed
  
• Some sectors may require prior government approval or are prohibited for FDI
  

2. Compliance with FEMA and RBI Regulations

• Must comply with Foreign Exchange Management Act (FEMA), 1999
  
• Report foreign investment to the Reserve Bank of India (RBI) through prescribed forms
  
• Maintain records of inward remittance and issue of shares within regulatory timelines
  

3. Modes of Investment

• Foreign investment can be in the form of equity shares, convertible debentures, or preference shares
  
• Investments can come from foreign individuals, companies, or institutional investors
  
• Share valuation must follow RBI-prescribed pricing guidelines
  

4. Reporting Requirements

• File Form FC-GPR with RBI within 30 days of allotting shares to foreign investors
  
• Submit advance reporting form within 30 days of receiving the investment
  
• Maintain compliance with KYC norms, FIRC (Foreign Inward Remittance Certificate), and share certificate issuance
  

5. Sectoral Conditions and Limits

• FDI limits and conditions vary by industry (e.g., 100% FDI allowed in IT, up to 49% in defense)
  
• Some sectors are fully open, while others are capped or restricted
  
• Must ensure investment does not violate sector-specific laws or caps