Georgia Outline of Considerations for Transactions Involving Foreign Investors

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US-DD01506
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This form is an outline of issues that the due diligence team should consider when determining the feasibility of the proposed transaction.

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FAQ

21b5The steps taken to attract foreign investment are: Allowing the foreign companies as tax free for the first five years in the industrial zones. Industrial zones called SEZs(Special Economic Zones) are set up with world class facilities. Allowing flexibility in labour laws.

How to attract international investors?Have a strong business model.Be prepared.Consider between vertical and horizontal foreign investment.Build an international network.How do foreign governments encourage foreign investment?

Factors influencing Foreign Direct Investment in a CountryStability of the Government:Flexibility in the Government Policy:Pro-active measures of the Government to promote investment (infrastructure):Exchange rate stability:Tar policies and concessions:Scope of the market:More items...

The Foreign Direct Investment means cross border invest- ment made by a resident in one economy in an enterprise in. another economy, with the objective establishing a lasting in- terest in the investee economy FDI is also described as in- vestment into the business of a country by a company in an-

Restrictions on foreign ownership are the most obvious barriers to inward FDI. They typically take the form of limiting the share of companies' equity capital in a target sector that non-residents are allowed to hold, e.g. to less than 50 per cent, or even prohibit any foreign ownership.

The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per cent for NRIs/PIOs. The limit is 20 per cent of the paid up capital in the case of public sector banks, including the State Bank of India.

Often suggested reasons for foreign ownership restrictions are that host country governments use them to increase economic rents and to maintain local control of resources.

A foreign direct investment (FDI) is a purchase of an interest in a company by a company or an investor located outside its borders. Generally, the term is used to describe a business decision to acquire a substantial stake in a foreign business or to buy it outright in order to expand its operations to a new region.

Disadvantages of Foreign Direct Investment in IndiaDisappearance of cottage and small scale industries:Contribution to the pollution:Exchange crisis:Cultural erosion:Political corruption:Inflation in the Economy:Trade Deficit:World Bank and lMF Aid:More items...

The present policy prohibits FDI in the following sectors:Gambling and Betting.Lottery business (including government/ private lottery, online lotteries etc)Activities /sectors not open to private sector investment (eg, atomic energy /railways)Retails trading (expect single-brand product retailing)More items...

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Georgia Outline of Considerations for Transactions Involving Foreign Investors