ODI

Through Automatic Route and Approval Route

Are you a Resident Indian wishing to invest in a company outside India (Foreign Country)? Are you a Domestic Firm willing to expand your operations to a foreign country? Get all the formalities related to Overseas Direct Investment (ODI) done with Ebizfiling. Prices start from 49999/- only.

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What is Overseas Direct Investment?

Through Automatic and Approval Route

Overseas Direct Investment means an investment made by an Indian Party in Joint Ventures (JV) or Wholly Owned Subsidiaries (WOS) outside India either by Automatic Route or Approval Route. Direct investment outside India i.e. ODI Compliance in India is governed by Foreign Exchange Management (FEMA Regulations).

Routes for Overseas Direct Investment

Just like the Foreign Director Investment, Overseas Direct Investment can be done via two routes

1. Automatic Route

  • Here no prior approval from the RBI is required.
  • The ODI via Automatic Route is processed by Authorized Dealers Bank.

2. Approval Route

  • The Overseas Direct Investment via Approval Route requires prior approval from RBI before it is processed by Authorized Dealers.

ODI  

Prohibited Activities under Overseas Direct Investment

  • An Indian Individual / Party can not make Overseas Direct Investments in Real estate, Banking Business.
  • The ODI can not be made for dealing in Financial products linked to INR without specific approval of RBI
  • Note: Buying and selling real estate and dealing in TDR (does not include township, residential and commercial premises, roads and bridges)

Why Ebizfiling for getting services of Foreign Direct Investment through Automatic and direct route?  

EbizFiling.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients all over the world. All the formalities by Overseas Direct Investment is easy, seamless, cheapest and quickest with us. In India we provide services like Indian subsidiary, Start up advisory, Secretarial compliance services, Filing of Form FC-GPR and FC-TRS, Trademark registration and many more. To get your FDI in India online you may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation.

Cost for ODI Compliance / Procedure in India

Essential

49999/-

(All Inclusive)

  • Documentation in respect of Form ODI
  • Correspondence with RBI & Authorized Dealer Bank
  • Valuation report by CA

Eligibility Criteria for Overseas Direct Investment

  • Only the resident Indian shall be eligible to invest outside India through Overseas direct Investment.
  • If the person goes outside India to take up the Job/employment then such Resident Indian shall not be eligible for the ODI.
  • Also, such Residents who stays outside Indian territory for an uncertain period for some other person, shall not be eligible for ODI.
  • The eligible Indian Party is a company, a body created under the act of parliament, registered Partnership Firm, Limited Liability Partnership (LLP) and any other entity in India as notified by the Reserve Bank of India.
  • Where more than one such entities as mentioned above make an investment in foreign entity, all such companies or bodies or entities shall together constitute the “Indian Party”.

Modes of Funding overseas in Joint Venture / Wholly Owned Subsidiary

overseas JV/WOS

Documents required for making remittance under Overseas Direct Investment (ODI) in India

  • Address proof of the Investor
  • Copy of PAN Card of all the investors
  • Income Tax Returns of the Investor (Last 3 years).
  • Board resolution for the proposed transaction/s.
  • A Request letter from the Indian Party (Investor) addressed to the designated AD bank.
  • ODI Declaration
  • ODI form Part I of all Individual Investors
  • LRS Form/declaration
  • Valuation from category 1 merchant banker or Chartered Accountant
  • Certificate of Incorporation, Memorandum of Association and Articles of Association of JV/WOS
  • Project Feasibility Report

Note: If there are more than one individual investor, Declaration for ODI needs to be obtained from all the investors.

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FAQs on Overseas Direct Investment- ODI Compliance in India

Answers to your queries regarding ODI Compliance

  • What is direct investment outside India?

    Direct investment outside India means investments, either under the Automatic Route or the Approval Route, by way of contribution to the capital or subscription to the Memorandum 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, signifying a long-term interest in the foreign entity (JV or WOS).

  • What are the limits of Overseas Direct Investment?

    The ‘Total Financial Commitment’ by an Indian Party in its Joint Venture company (JV) or the Wholly-owned subsidiary (WOS) outside India should not exceed 100% of net worth of the Indian Party. The ‘net worth’ of the Indian Party / company should be as per the last audited balance sheet of the Indian Party.

  • Can an Indian Party undertake financial commitment, without equity contribution?

    An Indian party may undertake financial commitment with prior approval of RBI, without equity contribution in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) provided it is as per the business requirement of the Indian party / Company and also as per the legal requirement of the host country / foreign Country.

  • Can Overseas Direct Investments be made freely in all the countries and are there any restrictions regarding the currency of investment?

    Investment in Pakistan is allowed under the approval route. Investments in Nepal can be only in Indian Rupees. Investments in Bhutan are allowed in Indian Rupees and in freely convertible currencies.

  • Price mentioned on the website is applicable for any amount of investments in the foreign entity?

    In most cases, we will charge the price mentioned on the website. However, depending on value of investment, complexity of the case and efforts required, the price may differ. You may please get in touch with our Compliance Manager to get the exact quote.

  • What are the governing regulations for making overseas investments?

    Direct investment outside India is governed by Foreign Exchange Management (Transfer or Issue of Any Foreign Security) (Amendment) Regulations, 2004 (‘FEMA Regulations’), as amended from time to time.

  • Which cities do you provide your services? 

    Ebizfiling.com provides “Overseas Direct Investment” services online across India. You can get your registered office shifted in Ahmedabad, Mumbai, Pune, Bangalore, Chennai, Delhi, Kolkata, Kanpur, Nagpur, Jaipur, or any city in India by us.

  • Have some queries?

    Our expert will help you in choosing the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@ebizfiling.com or call us @+91 9643 203 209.

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