ODI (Overseas Direct Investment) structured, reported, and renewed every year.
End-to-end Overseas Direct Investment advisory and FEMA reporting — outbound investment structuring, Form FC filing, Annual Performance Report (APR), Unique Identification Number (UIN), disinvestment, and compliance under the Overseas Investment Rules and Regulations, 2022.
Overseas Direct Investment, commonly called ODI, is investment by an Indian resident — an Indian party, resident individual, or registered partnership — in the equity capital or compulsorily convertible instruments of a foreign entity, including by way of setting up a wholly owned subsidiary or joint venture abroad, acquiring an existing foreign company, or contributing to the capital of an overseas entity. ODI is governed by the Foreign Exchange Management (Overseas Investment) Rules, 2022 and the Foreign Exchange Management (Overseas Investment) Regulations, 2022, which together replaced the earlier ODI framework with a more rationalised regime.
Under the current framework, an Indian party can make ODI up to 400% of its net worth on a financial commitment basis under the automatic route, subject to compliance with the sector-specific conditions and the strategic sector restrictions. Resident individuals can make ODI in equity capital of foreign entities engaged in bona fide business activity under the Liberalised Remittance Scheme (LRS), subject to the USD 250,000 annual cap. Every ODI transaction — remittance, capitalisation, disinvestment, or restructuring — must be reported through Form FC filed with the AD bank, which forwards the data to the Reserve Bank of India for allotment of a Unique Identification Number (UIN).
Our ODI practice covers the full outbound investment lifecycle — pre-investment structuring advisory on jurisdiction, holding structure, financing, and tax efficiency; review of strategic sector and conditional restrictions; preparation and filing of Form FC for every transaction; UIN allotment from RBI; ongoing Annual Performance Report (APR) filings due by 31st December each year; reporting of disinvestment and capital restructuring; and compounding applications where past lapses need to be regularised. Our team supports Indian groups across manufacturing, technology, professional services, and family offices in building and operating their overseas presence.
Our ODI Services
ODI Structuring
Pre-investment structuring of jurisdiction, holding company, financing, and tax efficiency.
Strategic Sector Review
Strategic sector and conditional restriction review under the Overseas Investment Rules, 2022.
Form FC Filing
Filing of Form FC with the AD bank for remittance, capitalisation, and disinvestment.
UIN Allotment
End-to-end coordination for allotment of Unique Identification Number from RBI.
Annual Performance Report
Filing of APR for each overseas entity by 31st December every year.
Resident Individual ODI
ODI advisory for resident individuals under LRS up to USD 250,000 per financial year.
Disinvestment Reporting
Reporting of disinvestment, winding up, and write-off of overseas investments.
Compounding Support
Compounding applications and representation before RBI for ODI contraventions.
Our ODI Workflow
Eligibility Review
Review of net worth, sectoral conditions, and entry route under the OI Rules, 2022.
Structuring
Choice of jurisdiction, holding structure, financing, and tax-efficient routes.
Form FC Filing
Filing of Form FC with the AD bank for the remittance and capital flow.
UIN Allotment
Allotment of UIN by RBI and creation of an overseas entity record.
Annual APR
Annual APR filing and ongoing reporting of disinvestment and restructuring.
Benefits of Structured ODI
Frequently Asked Questions
ODI is investment by an Indian resident in equity capital or convertible instruments of a foreign entity, including establishing a wholly owned subsidiary or joint venture abroad.
ODI is regulated by the Reserve Bank of India under the Foreign Exchange Management (Overseas Investment) Rules and Regulations, 2022.
Form FC is the FEMA reporting form filed with the AD bank for every ODI transaction including remittance, capitalisation, disinvestment, and restructuring.
Annual Performance Report (APR) is the yearly return filed by an Indian party for each overseas entity in which it has made ODI, due by 31st December every year.
An Indian party can make ODI up to 400% of its net worth under the automatic route, subject to compliance with the Overseas Investment Rules, 2022.
Investing Abroad?
Whether you are setting up a wholly owned subsidiary overseas, acquiring a foreign company, or making ODI as a resident individual under LRS, talk to our team for structured FEMA-compliant ODI from day one.
Plan Your ODI or call +91 9819 000 511