Keeping in view the opportunities available in the overseas market, to make full utilisation of resources and to diversify the business abroad; it is beneficial to make investment and set up business overseas. It not only benefits the investing entities but also the country in the form of Economic Co-operation with the host countries. Making Investment abroad boosts the confidence and goodwill of the Investing Entity and helps in capturing the foreign market.
DIRECT INVESTMENT OUTSIDE INDIA means investment by way of contribution to the capital or subscription to the Memorandum of Association of a foreign entity or by way of purchase of existing shares of a foreign entity either by market purchase or private placement or through stock exchange, but does not include portfolio investment.
- Automatic Route- No prior Approval from RBI is required. The Investor should approach Authorized Dealer Category–1 bank with an application in Form ODI along with prescribed enclosures / documents.
- Approval Route- The Investor should approach RBI for approval through Authorized Dealer Category–1 bank.
- Individual- Under Automatic Route, up to specified limit mentioned under Liberalized Remittance Scheme.
- Indian Party- Under Automatic Route, up to 400% of Net Worth subject to certain conditions.
- Proprietorship or Unregistered Partnership- Under Approval Route subject to certain conditions.
- Registered Trust/ Society- Under Approval Route subject to certain conditions.
- In case of Approval Route, a Physical Application shall be forwarded to RBI through AD Bank to the Central Office address.
- Before forwarding the physical application to RBI, the designated AD Bank should submit the Form ODI in the online ODI application under approval route and the transaction number generated by the application should be mentioned in the letter.
- In case the proposal is approved, the AD bank should effect the remittance under advice to Reserve Bank so that the UIN (Unique Identification Number) is allotted.
POST INVESTMENT COMPLIANCES
- Annual Return on FLA is required to be submitted by July 15 every year directly by all the Indian companies which have received FDI and/or made FDI abroad in the previous year(s) including the current year to RBI.
- Annual Performance Report(APR)- required to be submitted to the Reserve Bank, through the designated Authorized Dealer, every year on or before June 30 in Part III of Form ODI in respect of each JV or WOS outside India.
THE J&P ADVANTAGE:
Our CS Team at J&P handles the whole process with utmost due diligence. If you are deciding to invest overseas, our team at will assist you with the entire process, be it documentation, Meetings, Approval from various authorities, Filing of Forms, etc. with utmost care leaving no potential loopholes. All support will be provided by our dedicated team of professionals.