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Last updated: 2 October 2026
Investing in a company abroad — as an Indian company or a resident individual — is an overseas direct investment (ODI) under FEMA. Our team checks eligibility, prepares the filings through your authorised dealer bank and keeps the yearly reporting on track.
Overseas investment is governed by the FEMA (Overseas Investment) Rules, 2022, the Overseas Investment Regulations, 2022 and RBI’s Master Direction. Most investments are made under the automatic route through an authorised dealer (AD) bank, without prior RBI approval.
An ODI is not allowed if the structure would lead to more than two layers of subsidiaries (the round-tripping rule). An Annual Performance Report (APR) is due by 31 December each year for every foreign entity, and transfers or closures are also reported.
Based on the FEMA (Overseas Investment) Rules and Regulations, 2022 and RBI’s Master Direction on Overseas Investment. Last updated: 27 September 2026.
Limit on an Indian entity’s financial commitment, as a share of net worth
Yearly LRS limit for a resident individual
Annual Performance Report due for each foreign entity
To submit evidence of investment to the AD bank
Maximum layers of subsidiaries under the round-tripping rule
Starting late submission fee for delayed reporting
ODI problems usually surface when the next remittance is blocked.
Shares taken in a foreign company without an AD bank filing — common with founders of US or Singapore startups.
Missed Annual Performance Reports stop further overseas investment until regularised.
A foreign company that invests back into India with too many layers of subsidiaries.
ODI applies whichever country you invest in.
US company formation for Indian founders.
Singapore company formation.
UAE company formation.
Foreign holding company above an Indian company.
We check the route, limits and layer rule for your structure.
Form FC or Form OI prepared and filed through your AD bank.
Unique Identification Number obtained for the foreign entity.
Share certificates and other evidence submitted within six months.
APR filed by 31 December every year.
Further investment, transfers and disinvestment reported; past delays regularised.
ODI is not a one-time filing — reporting continues for as long as the investment is held.
Filed every year by 31 December for each foreign entity.
Indian companies with ODI also file the FLA return by 15 July.
Delays can be regularised by paying a late submission fee, within the permitted period.
Older or serious lapses may need compounding with RBI.
Share your query and our team will reply during business hours.
Overseas direct investment is an investment by a person resident in India in the shares of an unlisted foreign company, or of 10% or more in a listed one, or with control. It is governed by the Overseas Investment Rules and Regulations, 2022.
Yes, within the LRS limit of USD 250,000 per financial year, in an operating company that is not in financial services, with reporting through an AD bank.
A yearly report on each foreign entity in which ODI has been made, filed through the AD bank by 31 December.
The lapse can usually be regularised by filing late with a late submission fee; until then, further overseas investment may be blocked.
An ODI is not permitted if it results in a structure with more than two layers of subsidiaries investing back into India.
ACS – Director, Expertvuw Management Pvt Ltd
ODI filings are prepared by Expertvuw’s team and submitted through your authorised dealer bank. Certificates required by law for these filings are issued by an independent Chartered Accountant.