India's expedition abroad: Policies facilitating overseas investments from India

Policies facilitating

overseas investments from India

Various amendments to RBI policies and guidelines have raised permissible outbound investment limits and streamlined the processes. In order to enable Indian companies reap the benefits of globalization, the ceiling of overseas direct investment (ODI) by Indian entities is revised to 400 per cent of the net worth of the investing company under the automatic route for overseas investment after complying with RBI regulations.

The Liberalised Remittance Scheme (LRS) for Resident Individuals is further liberalised by enhancing the remittance limit to US$ 125,000 per financial year (April-March) for any permissible current or capital account transaction or a combination of both subject to conditions and reporting requirements mandated by the RBI. Further, the RBI in its monetary policy review has proposed to enhance the limit under LRS to $250,000 per person per year.

The LRS gives you the freedom to put your money to work anywhere in the world. And, LRS remains the most viable way for individuals to legally remit money overseas for purposes like investments in global financial markets.

An Indian company is permitted to invest overseas and form its Wholly Owned Subsidiaries (WOS). Our experience in handling these subsidiaries enables us to guide an Indian company in evaluating various jurisdictions and make a final choice by studying the provisions of tax treaties and local tax regime. Further, these WOS are used to facilitate following activities.

  1. Investments in international market
  2. Borrowings from international market
  3. Tax optimization
  4. Warehousing and after sales services

For any further Questions that you may have, please feel free to write to us oncompany@kdpaccountants.com

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