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Service · Money and finance
Bank accounts, loans and investors in another market. Led by a WONE Global Partner where one is named. Elsewhere, WONE Global confirms on request whether a vetted Associate firm can act.
Professional knowledge centre
Banking and capital access is about getting a foreign-owned business a working bank account, funding it with equity or debt from abroad, raising money on public markets, and using state-backed export credit and guarantee schemes. Each step is controlled by a different regulator: banks apply anti-money-laundering onboarding rules, central banks control cross-border borrowing and investment in countries such as India and China, securities regulators set listing rules, and export credit agencies follow an OECD agreement. Several of these rules changed in 2026: India's ECB framework was overhauled from 16 February 2026, the UK's new prospectus regime started on 19 January 2026, Saudi Arabia amended its offer rules in January 2026, and US banks gained relief on repeat beneficial-ownership checks in February 2026. The practical goal is to choose the funding route that the receiving country allows, with the approvals and filings done on time.
Source-checked research100% of statements checked against a source44 checked against an official source15 checked against a secondary sourceChecked 2026-10-19Not yet professionally reviewed
Two layers of rules apply to every funding decision. The first is the receiving country's capital-account regime: whether foreign equity needs approval, how foreign loans are capped and reported, and what proof is needed later to send money back. India is the clearest example of a detailed regime, with an automatic and a government route for equity, a loan registration and monthly reporting system for external commercial borrowing, and late-filing fees. The UK abolished exchange control in 1979, and the UAE, Saudi Arabia and Singapore are open, but each has its own investment registration or screening rules.
The second layer is the counterparty's own rules: a bank's customer due diligence before it will open an account, a stock exchange's listing conditions, or an export credit agency's eligibility tests. These are where timelines slip in practice, because the documents (ownership charts, beneficial-owner identification, export history, valuation certificates) must be prepared in advance. The modules below compare India, the UAE, Saudi Arabia, Singapore, the UK, the US, Germany and France, with Nigeria and China where they illustrate a point. Where an official page could not yet be checked, the claim is marked as from a secondary source or listed as a gap.
Before a bank opens an account for a foreign-owned company it must identify the company, its directors and the individuals who own or control it, and verify them from independent sources. The 25% ownership test for beneficial owners is common to the UK, US and UAE, and Singapore requires the bank to walk away if it cannot complete due diligence. Some countries add local steps, such as France's blocked capital account before registration or India's integrated incorporation form that includes the bank account.
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Borrowing from a foreign parent or lender is free of exchange-control approval in the UK and most Gulf markets, but India and China regulate it closely. India overhauled its external commercial borrowing (ECB) rules from 16 February 2026, replacing fixed caps and cost ceilings with a size limit linked to net worth, a single three-year minimum maturity and market-determined pricing. Reporting remains strict: a loan registration number before drawdown and a monthly return.
Questions on this topic
11 statements on foreign borrowing rules
Funding a subsidiary with share capital usually needs no prior approval in open sectors, but it triggers post-investment reporting that later supports repatriation. India's automatic route needs no approval, yet the issue must be reported in Form FC-GPR within 30 days of allotment at a price not below fair value; investors linked to land-border countries need government approval. The US requires a BEA filing within 45 days of a new foreign investment, Saudi Arabia requires prior registration with the Ministry of Investment, and Nigeria relies on a Certificate of Capital Importation.
Questions on this topic
11 statements on equity funding and foreign investment reporting
Listing rules changed in three main markets in 2024 to 2026. The UK replaced its prospectus regime on 19 January 2026, raising the threshold for a prospectus on further issues to 75% and creating public offer platforms. The EU Listing Act of October 2024 simplifies prospectuses across the EU. Saudi Arabia amended its offer rules in January 2026 and allows foreign issuers to apply for a Main Market listing. The UAE has three exchanges with an onshore regulator, and SGX-listed companies must report against Singapore's governance code.
Questions on this topic
11 statements on listing and capital markets
Export credit agencies make it easier for exporters and their buyers to borrow by guaranteeing or insuring a large share of the credit risk. UK Export Finance guarantees up to 80% of lender risk and insures up to 95% of contract value; Germany's Hermes cover and the US EXIM working capital guarantee work in similar ways. Officially supported terms are disciplined by the OECD Arrangement, which requires at least a 15% down payment and generally caps repayment at 15 years.
Questions on this topic
10 statements on development finance and export credit
Governments support business lending mainly through partial guarantees to commercial lenders and through promotional banks. In the US the SBA guarantees up to 85% of small 7(a) loans and 75% of larger ones for for-profit businesses located in the US; Germany's KfW finances SMEs and start-ups on a state mandate; Singapore's Enterprise Financing Scheme covers seven loan types. Eligibility usually turns on local presence and size, so foreign-owned subsidiaries must check how affiliates are counted.
Questions on this topic
6 statements on government funding and guarantees
Worked example, from official sources
What approvals and filings apply if a Singapore parent funds its new Indian subsidiary with share capital, and what changes if it lends the money instead?
| Point | Equity (FDI, automatic route) | Loan (ECB) | Source |
|---|---|---|---|
| Prior approval | None on the automatic route | None stated if within the framework; loan registration number through Form ECB 1 | FIFP FAQs; ECB summary |
| Size limit | Sectoral caps only | Higher of USD 1 billion or 3x net worth | ECB summary |
| Pricing | Issue price at or above fair value | Market-determined cost | Treelife; ECB summary |
| Minimum term | Not applicable | 3 years average maturity | ECB summary |
| First filing | Form FC-GPR within 30 days of allotment | Form ECB 1 for loan registration number | Treelife; ECB summary |
| Ongoing filing | Downstream investment rules if the subsidiary invests onward | Form ECB 2 within 7 days after each month with drawdown or servicing | FIFP FAQs; ECB summary |
| Use of funds | Sector conditions of the FDI policy | No securities trading or real estate business; acquisitions only for control | ECB summary |
Result on these facts
On these facts neither route needs prior approval. Equity is simpler to maintain: one FC-GPR filing within 30 days of allotment, at a price not below fair value. A loan gives flexibility to repay principal but brings a loan registration number, a three-year minimum average maturity, end-use limits and a monthly ECB 2 return. Since 16 February 2026 a parent can price the loan at market rates and size it up to USD 1 billion even for a new subsidiary, which makes debt a more practical option than under the earlier caps.
All ECB points and the FC-GPR timing, fee and pricing points come from secondary summaries because the RBI website refused automated access; confirm them against the amended FEMA (Borrowing and Lending) Regulations, the ECB and Foreign Investment Master Directions and the authorised dealer bank's requirements on the funding date. Check the sector's entry route and cap in the current FDI policy.
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
Foreign investment under the automatic route does not need prior approval of the RBI or the central government, while investment under the government route needs prior government approval and must follow the conditions of that approval. Applies by sector under the Consolidated FDI Policy and the FEMA (Non-debt Instruments) Rules, 2019. Central rule.
The FAQ document is undated; it refers to the Consolidated FDI Policy Circular of 15 October 2020 as amended. Reused from market guide claim in-establish-001.
Under the amended framework an Indian borrower may raise ECB up to the higher of USD 1 billion in outstanding ECB or three times its net worth, replacing the earlier cap of USD 750 million per financial year. Central rule. Borrowers regulated by the RBI, SEBI, IRDAI or PFRDA are outside this limit; refinancing ECBs are excluded from the amount. Net worth basis to be confirmed against the RBI text.
Secondary source (Indian advisory firm). The RBI website refused automated access during research, so the amended FEMA (Borrowing and Lending) Regulations and the ECB Master Direction could not yet be checked; confirm against the RBI text.
Shares issued to a foreign investor must be priced at or above fair value under the FEMA pricing guidelines, supported by a valuation certificate from a practising chartered accountant or SEBI-registered merchant banker. Central rule. The source states the certificate should not be more than 90 days old at allotment.
Secondary source (Indian advisory firm). The RBI Master Direction on Foreign Investment in India could not yet be checked because the RBI website refused automated access; confirm against the Master Direction and the FEMA reporting regulations.
The amended ECB framework sets no all-in-cost ceiling for ECB: the cost, prepayment charges and penal interest are market-determined. Central rule. Trade credits with a maturity under three years keep a cap of benchmark plus 3% (foreign currency) or plus 2.5% (rupee).
Secondary source (Indian advisory firm). The RBI website refused automated access during research, so the amended FEMA (Borrowing and Lending) Regulations and the ECB Master Direction could not yet be checked; confirm against the RBI text.
The minimum average maturity period for ECB is a single three years, replacing the earlier three-, five-, seven- and ten-year buckets tied to end use; manufacturing companies may raise ECB with a maturity of one to three years up to USD 150 million outstanding. Central rule. Conversion into non-debt instruments, refinancing, debt waivers and certain repayments are exempt from the minimum maturity.
Secondary source (Indian advisory firm). The RBI website refused automated access during research, so the amended FEMA (Borrowing and Lending) Regulations and the ECB Master Direction could not yet be checked; confirm against the RBI text.
An Indian company that issues capital instruments to a foreign investor must report the issue in Form FC-GPR within 30 days of allotment, through the Single Master Form on the RBI's FIRMS portal, and the form is verified by its authorised dealer bank. Central rule (RBI). The 30 days run from allotment, not from receipt of funds.
Secondary source (Indian advisory firm). The RBI Master Direction on Foreign Investment in India could not yet be checked because the RBI website refused automated access; confirm against the Master Direction and the FEMA reporting regulations.
An Indian borrower reports an ECB in Form ECB 1 to obtain a loan registration number, and files Form ECB 2 within 7 calendar days after the end of each month in which proceeds are received or debt is serviced. Central rule. Changes to reported parameters go in a revised Form ECB 1 within 7 calendar days after the month of change.
Secondary source (Indian advisory firm). The RBI website refused automated access during research, so the amended FEMA (Borrowing and Lending) Regulations and the ECB Master Direction could not yet be checked; confirm against the RBI text.
Downstream investment by an Indian entity that is foreign-owned or foreign-controlled counts as indirect foreign investment and must comply with the entry route, sectoral caps, pricing guidelines and other conditions. Central rule (FDI Policy and FEMA Non-debt Instruments Rules).
Reused from market guide claim in-banking-007.
ECB proceeds may not be used for trading in listed or unlisted securities or in sectors where foreign direct investment is prohibited, such as real estate business, and acquisition finance is allowed only for strategic acquisitions of control. Central rule. The negative list follows the FDI-prohibited sectors in the FEMA (Non-debt Instruments) Rules; on-lending for restricted purposes is also prohibited.
Secondary source (Indian advisory firm). The RBI website refused automated access during research, so the amended FEMA (Borrowing and Lending) Regulations and the ECB Master Direction could not yet be checked; confirm against the RBI text.
An entity of a country that shares a land border with India, or whose beneficial owner is situated in or is a citizen of such a country, can invest in India only under the government route (Press Note 3 of 2020), and a transfer of existing or future FDI that moves beneficial ownership into that group also needs government approval. Central rule. Pakistani citizens and entities may invest only under the government route and not in defence, space, atomic energy or prohibited sectors.
Late FC-GPR filing attracts a late submission fee of INR 7,500 plus 0.025% of the amount involved for each day of delay, capped at 100% of the amount involved. Central rule (RBI), as summarised from RBI A.P. (DIR Series) Circular No. 16 of 30 September 2022.
Secondary source (Indian advisory firm). The RBI Master Direction on Foreign Investment in India could not yet be checked because the RBI website refused automated access; confirm against the Master Direction and the FEMA reporting regulations.
Any non-resident person, including an individual, may lend under the amended ECB framework, as may financial institutions or branches in an Indian IFSC and foreign branches of RBI-regulated lenders. Central rule. Any entity permitted under applicable law may borrow; borrowers under insolvency resolution may borrow only if the approved plan expressly allows it.
Secondary source (Indian advisory firm). The RBI website refused automated access during research, so the amended FEMA (Borrowing and Lending) Regulations and the ECB Master Direction could not yet be checked; confirm against the RBI text.
The RBI Master Direction on Foreign Investment in India (issued 4 January 2018) is shown as updated up to 15 June 2026, and the Master Direction on External Commercial Borrowings, Trade Credits and Structured Obligations as updated on 8 September 2026. Central rule (RBI).
The listing was opened; the Master Direction texts themselves could not yet be checked. Reused from market guide claim in-banking-004.
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