Overseas Direct Investment Filing
Regulatory reporting for Indian entities investing in a joint venture or subsidiary abroad.
An Indian entity or resident individual investing in a company outside India is making an overseas direct investment, and it is regulated under the Foreign Exchange Management Act. The investment must be routed through an authorised dealer bank and reported to the Reserve Bank.
The reporting is not a formality. Non-compliance is a contravention requiring compounding, and because overseas structures tend to be discovered years later during a tax assessment or a transaction, the compounding usually happens at the worst moment.
What this costs
UIN + Remittance Filing
₹46,549 plus GST
- Indian Entity Documentation Coordination
- Foreign Entity Documentation Coordination
- ODI Transaction Compliance Checks
- Prepared and submitted to your authorised dealer bank
- Queries on authorised dealer bank charges resolved
- Remittance confirmation obtained from the bank
What counts as overseas direct investment
- Acquiring equity or other capital instruments in a foreign entity
- Contributing to the capital of a foreign limited liability partnership
- Acquiring control of a foreign entity, however structured
- Setting up a wholly owned subsidiary or joint venture abroad
- Investment by a resident individual under the liberalised remittance scheme, within its limits
- Overseas portfolio investment, which is treated separately and more permissively
The financial commitment limit
An Indian entity may invest abroad up to a prescribed multiple of its net worth as at the last audited balance sheet, taking together equity, loans and guarantees issued on behalf of the overseas entity.
Guarantees count towards the limit even though no money has moved, which is the part most often overlooked. An entity that has issued a corporate guarantee for its subsidiary’s borrowing has used part of its capacity.
What has to be filed
- Form FC, filed through the authorised dealer bank before the remittance
- A unique identification number allotted for the overseas entity
- Annual Performance Report by 31 December each year, for every overseas entity
- Reporting of any disinvestment within the prescribed period
- Evidence of investment — share certificates from the overseas entity, within six months
- Annual return on foreign liabilities and assets, alongside
The Annual Performance Report
This is the most commonly missed obligation. An Annual Performance Report is due for every overseas entity for as long as the investment is held, based on its audited accounts.
Where the overseas entity is not required to be audited in its own jurisdiction, unaudited accounts certified by the Indian investor may be accepted subject to conditions. Failing to file at all blocks further remittances to that entity and is a contravention in itself.
How we handle it
- 1 Checking capacity We compute the financial commitment limit against net worth, counting guarantees already issued.
- 2 Checking permissibility The activity of the overseas entity and the route are checked against the current rules.
- 3 Filing Form FC The form is filed through your authorised dealer bank before the remittance and the identification number obtained.
- 4 Evidence of investment Share certificates from the overseas entity are obtained and filed within the prescribed period.
- 5 Annual reporting The Annual Performance Report is set up as a recurring December obligation for each overseas entity.
- 6 Disinvestment Where the investment is later sold, the disinvestment reporting is completed within its window.
Frequently asked questions
How much can we invest abroad?
An Indian entity may commit up to a prescribed multiple of its net worth per the last audited balance sheet, counting equity, loans and guarantees together.
Do guarantees count towards the limit?
Yes, even though no money has moved. A corporate guarantee issued for an overseas subsidiary uses part of your financial commitment capacity, which is frequently overlooked.
What is the Annual Performance Report?
An annual report due by 31 December for every overseas entity, based on its audited accounts, for as long as the investment is held. Not filing blocks further remittance to that entity.
Can an individual invest abroad?
Yes, within the liberalised remittance scheme limits and subject to the conditions applying to overseas investment by resident individuals.
What if we never reported an older investment?
It is a contravention regularised through compounding — an application, a penalty and a process taking months. It is better addressed proactively than discovered during an assessment or a transaction.
What is not included. Government fees, statutory charges, stamp duty, court and registry fees, digital signature costs and any third-party professional charges are separate and payable at actuals. GST applies on professional fees where indicated. Prices shown are indicative and may change without notice; we confirm the total in writing before any work begins — see our terms on pricing.
Talk to us about Overseas Direct Investment Filing
Share your requirement and our team will confirm the documents needed, the exact charges and a realistic timeline — usually the same working day.
- Expert document checking before submission
- Regular status updates on WhatsApp
- Transparent professional charges
- Assistance in Marathi & English
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