Changes in Foreign Direct Investment (FDI) conditions in e-commerce activities

Global Tax Update : February 2019 / India

Government of India (GOI) had amended the FDI Policy on e-commerce and permitted 100 per cent FDI in the marketplace model of e-commerce (e-commerce marketplace entities) under the automatic route. FDI was not allowed in inventory based model of e-commerce. In order to provide clarity and strengthen the regulatory framework governing FDI in ecommerce marketplace entities in India and to bring level playing field among online and offline traders, GOI has further amended the consolidated FDI policy Circular of 2017 (FDI Policy) in relation to FDI in e-commerce entities. The amendments shall be applicable to all e-commerce marketplace entities having FDI with effect from 1 February 2019.

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This newsletter explains the following topics;

1. Changes in Foreign Direct Investment (FDI*) conditions in e-commerce activities
2. Reserve Bank of India notifies FEMA (Borrowing and Lending) Regulations, 2018 and announces New External Commercial Borrowings (ECB) Framework
* Policy for foreign investment into Indian Companies / entities

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>> Click for Japanese [電子商取引活動における海外直接投資の条件の変更 ほか]

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* This Article is based on the relevant Japanese or specific country’s tax law and other authorities in effect on the date of this Article. This Article would not be guaranteed updating if there are any changes in Japanese tax law, any other law, or interpretations by the courts or tax authorities thereof after the date of this Article.

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