Overseas Direct Investment (ODI) — Take Your Business Global

India built you. Now build the world. Whether you're expanding into new markets, acquiring foreign technology, or setting up an international holding structure — Overseas Direct Investment gives Indian businesses the legal framework to go global with confidence. We handle every RBI filing, FEMA obligation, and cross-border compliance — so you can focus on conquering new markets from Day 1.

What Is Overseas Direct Investment?

ODI is investment made by an Indian entity or resident individual in a foreign entity — through equity, loans, or guarantees — with the intent of establishing a lasting business interest abroad.

Under FEMA (Foreign Exchange Management Act) and RBI regulations, every rupee that leaves India for investment purposes must follow a defined legal process — and every development thereafter must be reported on time.

Why Go Global — The Case for ODI

ODI Routes — Know Before You Invest

🟢 Automatic Route

No prior RBI approval needed — invest within defined limits.

Indian entities can invest under the Automatic Route subject to the following conditions:

• Investment up to 400% of net worth of the Indian entity (as per last audited balance sheet)
• Indian entity must be profitable in the preceding 3 financial years
• No outstanding default on borrowings from banks / financial institutions
• Not under investigation by ED, CBI, SEBI, or any regulatory authority
• Investment in a permitted sector (financial services sector has additional conditions)

🔴 Approval Route

Prior RBI approval required before investment.

Applies when:

• Investment exceeds the 400% net worth limit
• Indian entity does not meet profitability criteria
• Investment is in financial services sector abroad (additional RBI / SEBI conditions)
• Restructuring of existing overseas investment
• Any other condition specified by RBI from time to time

💡 Individual residents can invest abroad under the Liberalised Remittance Scheme (LRS) — up to $250,000 per financial year per individual for permitted capital and current account transactions.

Who Can Make an ODI?

Forms of ODI

Indian investors can structure their overseas investment in multiple ways:

Our ODI Services

🗺️ 1. ODI Strategy & Structure Advisory

The right structure determines your global success — and your tax bill.

• Assessment of ODI eligibility — net worth, profitability, compliance standing
• Automatic vs. Approval Route determination
• Optimal jurisdiction selection — UAE, Singapore, Mauritius, Netherlands, UK, USA, and more
• Holding structure design for tax efficiency, treaty benefits, and future exit
• DTAA analysis — minimize withholding tax on dividends, royalties, and interest
• Coordination with foreign legal counsel for target country compliance

💡 Jurisdiction matters enormously. Singapore offers strong treaty networks and IP holding advantages. UAE offers zero tax and ease of banking. Mauritius remains popular for African and Indian Ocean investments. Netherlands and Luxembourg for European holding structures. We match your goals to the right jurisdiction.

📋 2. RBI Filings & FEMA Compliance

Every overseas investment must be reported. We make sure it is — on time, every time.

ODI triggers a cascade of mandatory RBI filings. Missing even one attracts compounding penalties.

We file every form, track every deadline, and maintain your complete ODI compliance record.

🏗️ 3. Foreign Entity Incorporation

Your global presence, built right.

Once the jurisdiction and structure are decided, we coordinate end-to-end incorporation of your foreign entity:

• Wholly Owned Subsidiary — 100% Indian-owned foreign company
• Joint Venture — shared ownership with foreign partner
• Holding Company — intermediate holding structure for multi-country investments
• Branch Office abroad — extension of Indian parent in foreign jurisdiction
• SPV / Special Purpose Vehicle — for specific project or acquisition financing

We work with our network of foreign legal and accounting partners across 30+ jurisdictions to deliver seamless cross-border incorporation.

💰 4. Transfer Pricing for Outbound Transactions

Every transaction between your Indian entity and foreign subsidiary is scrutinized.

• Transfer pricing policy for outbound services, loans, royalties, and management fees
• Arm's length pricing documentation — protect against Indian tax authority adjustments
• Form 3CEB filing (mandatory for international transactions exceeding ₹1 crore)
• Master File and Country-by-Country Report (CbCR) compliance for large groups
• Advance Pricing Agreement (APA) assistance for certainty on pricing

🤝 5. Joint Venture Structuring

A JV abroad is only as strong as its agreement.

• Foreign partner identification and background checks
• Joint Venture Agreement drafting — profit sharing, governance, exit rights, IP ownership
• Shareholder Agreement with drag-along, tag-along, and anti-dilution provisions
• Valuation of contribution — cash, IP, technology, know-how
• RBI approval and ODI filings for JV investment

🏦 6. Overseas Loans & Guarantees

Funding your foreign entity — within RBI limits.

Indian companies frequently fund their overseas subsidiaries through shareholder loans and corporate guarantees. Each has specific RBI rules:

We structure each instrument correctly, file the required forms, and track repayment and reporting timelines.

📤 7. Repatriation of ODI Income

Bringing your global earnings home — legally and tax-efficiently.

Income from overseas investments must be repatriated to India within specified timelines:

• Dividends — must be repatriated within 60 days of declaration
• Loan repayments & interest — tracked and reconciled against ODI filings
• Disinvestment proceeds — must be repatriated within 90 days of receipt abroad
• Royalties & fees — repatriated as per agreement terms

We handle all Form 15CA / 15CB filings for repatriation, reconcile inflows against RBI records, and ensure your ODI account stays clean and current.

⚠️ Failure to repatriate proceeds within RBI timelines is a FEMA violation — attracting compounding penalties regardless of intent. We track every due date proactively.

🚪 8. Disinvestment & Exit from Overseas Investment

Exiting a foreign investment is as regulated as entering one.

• Share sale to foreign buyer — pricing compliance and RBI reporting
• Share sale to Indian resident — ODI to domestic investment conversion
• Liquidation of foreign entity — winding up process and repatriation
• Write-off of overseas investment — specific RBI conditions and approvals
• Form ODI Part III filing within 30 days of disinvestment

🔍 9. Compounding of FEMA Violations

Made a mistake? There's a legal path to regularization.

If past ODI transactions were not reported correctly or timely, they can be regularized through RBI's Compounding process — a legal mechanism to acknowledge violations and pay a compounding fee in lieu of prosecution.

• Assessment of violation category and compounding eligibility
• Preparation of compounding application with full disclosure
• Representation before RBI Compounding Authority
• Post-compounding compliance setup to prevent recurrence

💡 Voluntary disclosure is always better than discovery. Penalties for self-reported compounding are significantly lower than those arising from RBI inspection or ED investigation. If you have unreported ODI, talk to us today.

ODI Compliance Calendar

Your annual ODI compliance obligations — at a glance.

💡 Jurisdiction selection must balance tax efficiency, treaty benefits, business purpose, and substance requirements. Pure tax-driven structures without genuine business substance are increasingly challenged by Indian and global tax authorities. We ensure your structure is both efficient AND defensible.

⚠️ The Cost of ODI Non-Compliance

FEMA violations follow you — and your company — for years.

ODI non-compliance is not just a paperwork problem:

• ⚖️ FEMA penalties — up to 3x the transaction value for each violation
• 🔍 ED investigation — Enforcement Directorate has powers of arrest and attachment
• 🏦 Repatriation blocked — future remittances halted pending regularization
• 🚫 Future ODI barred — non-compliant entities cannot make fresh overseas investments
• 📉 Asset attachment — foreign assets can be attached under FEMA / PMLA
• 🌐 Reputational damage — affects fundraising, banking, and global partnerships
• ❌ Director liability — personal consequences for directors of non-compliant companies