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TAXAJ Corporate Services LLP - Financial Doctors

🔍 What is Overseas Direct Investment (ODI)?

Overseas Direct Investment (ODI) refers to the financial investment made by an Indian entity or resident individual in a Joint Venture (JV) or Wholly Owned Subsidiary (WOS) abroad. Governed under the Foreign Exchange Management Act (FEMA), 1999, and the ODI Rules & Regulations, 2022, this investment route allows Indian businesses to establish a global presence legally and strategically.


Whether you're setting up a new venture or acquiring an existing foreign business, ODI enables you to go global while remaining compliant with Reserve Bank of India (RBI) guidelines.


Overview: ODI in India refers to investments made by Indian entities or individuals in foreign businesses, either through equity capital, loans, or guarantees, with the objective of establishing a significant interest or control in those entities. With FEMA & its rules, ODI aims to promote Indian participation in global markets. It includes financial commitments such as acquiring shares, subscribing to the Memorandum of Association (MoA), or extending loans, subject to limits like 400% of net worth for Indian entities. Specific guidelines, restrictions, and reporting requirements ensure compliance and transparency in cross-border investments.

✅ Who Can Make ODI?

Indian Companies
LLP's
Partnership Firms
Resident Individuals (in certain conditions)
Trusts and Societies (with RBI approval)

📋 Services We Offer Under ODI Compliance

 🛠 Structuring & Strategic Advisory

We help businesses plan and execute their investments, transactions, or expansions with a focus on legal, tax, and regulatory efficiency. Whether it's setting up a joint venture abroad, entering into a partnership, or choosing the right business structure, TAXAJ ensures your decisions are compliant, future-ready, and aligned with your commercial goals.

🧾 Documentation & Filing

End-to-end preparation and filing of:

✅ Form FC
✅ Form ODI – Part I, II, and III
✅ Share Certificates, Board Resolutions
✅ Declaration Forms and Authorized Dealer (AD) Bank Liaison

🔍 Automatic Route vs. Approval Route

Under the RBI’s ODI framework, Indian entities can invest abroad through either the Automatic Route (no prior approval needed) or the Approval Route (requiring RBI clearance). At TAXAJ, we assess your eligibility, prepare all necessary documentation, and guide you through the appropriate route — ensuring full compliance and a hassle-free process.

📈 Annual Performance Reports (APR)

Indian entities that have made overseas investments are required to file an Annual Performance Report (APR) with the RBI for each foreign JV or WOS. At TAXAJ, we assist in the accurate preparation and timely submission of APRs, ensuring full compliance with FEMA regulations and avoiding penalties or scrutiny from regulatory authorities.

🔄 Disinvestment & Exit Strategy

Exiting from a foreign JV or WOS requires careful planning and regulatory compliance. At TAXAJ, we provide end-to-end support for disinvestment, repatriation of funds, and closure of overseas entities — ensuring alignment with RBI guidelines, proper documentation, and a smooth, legally sound exit process.

📑 FEMA, Tax & Regulatory Advisory

Navigating cross-border transactions requires a deep understanding of FEMA regulations, international tax laws, and compliance requirements. At TAXAJ, we provide expert advisory to help you structure your overseas investments efficiently, minimize tax exposure, and stay fully compliant with RBI, Income Tax, and corporate laws — all under one roof.

⚖️ Why ODI Compliance is Crucial

Overseas Direct Investment (ODI) offers Indian businesses the opportunity to grow globally—but with that comes the responsibility of strict legal and regulatory compliance. The Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA) have laid down specific rules and reporting requirements for ODI transactions.

Failing to comply can lead to:


❌ Heavy Monetary Penalties under FEMA
❌ Reversal of Transactions and forfeiture of investment rights
❌ Investigation by Enforcement Directorate (ED)
❌ Restrictions on Future Foreign Transactions
❌ Reputational Damage to both individuals and corporate entities

At TAXAJ, we ensure that every step of your overseas investment journey is legally sound, strategically structured, and fully compliant, protecting your interests and allowing you to focus on international growth without regulatory roadblocks.