Expert advisory for Indian companies and entrepreneurs setting up business outside India, covering overseas direct investment (ODI) compliance, jurisdiction selection, subsidiary incorporation, branch office setup, joint ventures, and ongoing FEMA and RBI reporting. KDP manages your complete international expansion under one roof.
Our Team will get back within 24 hours.
India's economic rise has produced a generation of entrepreneurs, family businesses, and mid-sized corporations that are no longer content to compete only within domestic borders. Whether the objective is to access new markets, leverage a tax-efficient holding structure, establish a global service delivery centre, acquire international clients more credibly, or simply diversify business operations across geographies, setting up a company outside India has become a strategic imperative for a growing class of Indian businesses.
The regulatory framework governing outbound investments from India is anchored in the Foreign Exchange Management Act, 1999 (FEMA), and administered by the Reserve Bank of India through the Overseas Direct Investment (ODI) regulations. Under the automatic route, Indian entities are permitted to invest overseas up to 400% of their net worth, subject to compliance with RBI conditions. Individual residents and Indian companies must route all overseas investments through an Authorised Dealer (AD Category-I) bank and comply with prescribed reporting requirements. Failure to do so constitutes a FEMA contravention, which carries both financial penalties and operational consequences.
Beyond the Indian regulatory dimension, the jurisdiction you select for your overseas company determines your corporate tax rate, double taxation treaty access, ease of banking, local regulatory burden, repatriation flexibility, and the credibility of your business with international clients and investors. Singapore, the UAE, the United Kingdom, the Netherlands, Mauritius, the Cayman Islands, and the British Virgin Islands each offer distinct advantages depending on your business model, target markets, and long-term structure goals. There is no universally optimal jurisdiction; the right choice is always context-specific.
At KDP (Kamdar Desai & Patel LLP), our Chartered Accountants have been advising Indian companies and entrepreneurs on cross-border structures and FEMA compliance for decades. We combine deep knowledge of the Indian regulatory framework with practical experience in international incorporations to ensure that your overseas company is set up in the right jurisdiction, through the right structure, with full ODI compliance from day one.
Get Started100% equity held by the Indian entity. A separate legal entity in the foreign jurisdiction — the most commonly used structure for Indian companies expanding internationally.
Shared ownership with a foreign entity for market access, local knowledge, or distribution — with careful structuring of JV agreements, profit-sharing, and exit provisions.
An extension of the Indian parent in a foreign country — simpler to set up than a full subsidiary in some jurisdictions, subject to FEMA and local regulatory requirements.
Tax-neutral structures in Singapore, Mauritius, UAE, Cayman Islands, or BVI to consolidate holdings, attract foreign VC, and simplify cross-border M&A — designed to comply with GAAR and PPT provisions.
Where an Indian company's foreign subsidiary incorporates its own subsidiaries to expand the group's international footprint — treated as indirect overseas investments subject to specific FEMA and RBI compliance.
The following categories of Indian entities and individuals commonly require overseas company formation. Not sure which structure or jurisdiction suits your goals? KDP advises every client before any filing.
Companies seeking to establish a direct sales, marketing, or service delivery presence in international markets through an overseas subsidiary or branch.
Technology firms incorporating overseas entities to contract directly with foreign clients and receive payments in foreign currency without routing through India.
Indian entrepreneurs and start-ups setting up offshore holding structures to attract foreign venture capital and private equity investment more efficiently.
Establishing overseas holding or investment companies for asset protection, wealth structuring, and succession planning across jurisdictions.
Exporters incorporating overseas trading companies to manage international distribution, and manufacturers establishing subsidiaries for procurement or regional market access.
Professionals and consultants establishing overseas entities to provide services to foreign clients, or Indian companies pursuing overseas acquisitions requiring a local entity.
From jurisdiction selection and ODI compliance to overseas incorporation and post-incorporation annual reporting — KDP's Chartered Accountants manage every aspect of your international expansion.
Selecting the right country for your overseas company is the most consequential decision in the entire process. We conduct a structured advisory engagement to evaluate your objectives against the regulatory, tax, and commercial characteristics of the most relevant jurisdictions, and deliver a formal recommendation supported by comparative analysis.
All outbound investments from India by Indian entities or resident individuals are governed by FEMA and the RBI's ODI framework. Non-compliance with ODI regulations constitutes a FEMA contravention. We manage the complete ODI compliance process from pre-investment approval to annual reporting.
We coordinate the actual company incorporation in the chosen foreign jurisdiction, working with our network of registered agents, local lawyers, and company secretaries in each jurisdiction. We manage the complete process from document preparation to certificate of incorporation and initial bank account opening.
An overseas company that transacts with its Indian parent — whether through service fees, royalties, management charges, or goods supply — creates automatic transfer pricing exposure in India. We design the inter-company transaction structure and documentation framework before any transactions commence, ensuring defensibility under both Indian and international tax rules.
Opening a corporate bank account for a newly incorporated overseas company is frequently the most operationally challenging step in the process, particularly for companies incorporated in offshore financial centres. We draw on our relationships and experience across jurisdictions to guide the banking setup process and minimise delays.
Once the overseas company is operational, it creates an ongoing compliance obligation for the Indian parent or Indian promoter under both Indian and foreign law. We manage the complete post-incorporation compliance calendar to ensure that neither the Indian entity nor the overseas company falls into default.
The documentation required varies by jurisdiction and structure. The following is the standard Indian-side documentation required for most overseas company formations and ODI filings.
Certificate of Incorporation of the Indian company; PAN of the Indian company; Latest audited financial statements for net worth computation; Board Resolution authorising the overseas investment and designating the authorised signatory; Form ODI filing with the AD bank; Proposed Memorandum and Articles of Association of the overseas entity.
PAN card; Passport; Bank statements for the last six months (source of funds); Form ODI (Part II) for individual investment under the Liberalised Remittance Scheme (LRS) where applicable; Details of the overseas entity to be incorporated.
Apostilled or notarised copies of Indian directors' and shareholders' passports; Proof of Indian address (utility bill or bank statement) of proposed directors; Source of funds declaration; Proposed company name and business activity description; Registered office address in the foreign jurisdiction; Completed KYC forms as required by the foreign registrar and the banking institution.
Documentation requirements vary significantly by jurisdiction. KDP provides a personalised document checklist after the initial consultation, tailored to your specific structure, chosen jurisdiction, and investor category (corporate or individual). All documents requiring apostille or notarisation are coordinated by our team.
KDP manages the complete overseas company formation process from initial consultation to post-incorporation annual compliance. Here is exactly how we work.
We begin with a structured consultation to understand your business objectives, target markets, investment amount, tax considerations, operational requirements, and long-term exit or succession plans. This shapes the jurisdiction recommendation and structure design.
Based on your objectives, we prepare a comparative analysis of suitable jurisdictions and entity structures, covering tax treatment, treaty access, banking environment, regulatory burden, and cost. We present a formal recommendation and obtain your confirmation before proceeding.
We prepare the complete ODI compliance package — including Form ODI, board resolutions, net worth certificate, and source of funds documentation — and submit through your designated AD Category-I bank. We track remittance approval and coordinate with the bank until funds are remitted.
We engage our network of local agents and advisors in the chosen jurisdiction to execute the company incorporation, prepare all required local documents, file with the foreign company registry, and obtain the Certificate of Incorporation, share certificates, and all incorporation documents.
We prepare the complete corporate KYC package and assist with the bank account opening process in the foreign jurisdiction, coordinating with the selected banking institution and providing all supporting documentation required for account activation.
We establish the transfer pricing policy for any inter-company transactions, set up the Indian-side disclosure and reporting calendar (Schedule FA, APR, FEMA), and advise on local tax registration requirements in the foreign jurisdiction.
We maintain an annual compliance calendar for both the Indian and overseas entities, covering RBI Annual Performance Report filings, Indian income tax foreign asset disclosures, local annual returns in the foreign jurisdiction, and any additional FEMA reporting triggered by subsequent investments, loans, or guarantees.
KDP (Kamdar Desai & Patel LLP) has advised Indian businesses on international structures and FEMA compliance since long before the current ODI framework was enacted. Here is what distinguishes us.
Our understanding of the regulatory landscape governing outbound investments, combined with our network of international associates, means that you receive cohesive, coordinated advice rather than fragmented inputs from multiple advisors.
Setting up a company outside India requires simultaneous expertise in Indian FEMA law, Indian income tax (including GAAR and foreign asset disclosure), international tax treaty analysis, and the corporate law of the chosen foreign jurisdiction. KDP brings the Indian regulatory expertise in-house and coordinates the foreign jurisdiction components through trusted local partners, giving you a single point of accountability for the entire process.
We do not have a preferred jurisdiction or an arrangement that incentivises us to recommend one country over another. Our jurisdiction recommendation is based entirely on your business objectives, tax efficiency requirements, and operational needs. Clients receive an honest assessment of trade-offs rather than a sales pitch for a particular offshore location.
Every overseas company formation engagement is managed by a dedicated Chartered Accountant who remains your primary contact from initial consultation through post-incorporation compliance. You will never be handed to a junior executive or a support queue.
Reach out to our experts today for a personalised consultation. We'll guide you from jurisdiction selection and ODI compliance to overseas incorporation and ongoing annual reporting.
Clear answers to the most common queries from Indian companies and individuals about setting up a company outside India.
Under the RBI's ODI regulations, an Indian company can invest overseas up to 400% of its net worth under the automatic route, without prior RBI approval. Net worth is computed as per the latest audited balance sheet. Investments beyond this limit require RBI approval under the approval route. Individual residents can invest overseas under the Liberalised Remittance Scheme (LRS) up to USD 250,000 per financial year.
The choice depends entirely on the purpose of the overseas entity. Singapore is widely used for operational subsidiaries serving the Asia-Pacific market and for holding companies due to its extensive tax treaty network and business-friendly environment. The UAE (particularly Dubai and the DIFC free zones) is popular for trading companies and regional headquarters. Mauritius and the Netherlands have historically been used for holding structures due to their DTAA with India, though treaty changes have reduced some historical advantages. The Cayman Islands and British Virgin Islands are used for fund vehicles and special purpose entities. KDP advises on the most appropriate jurisdiction for your specific situation.
Under the automatic route, no prior RBI approval is required. However, the Indian company must file Form ODI with its AD Category-I bank before making the remittance, and the bank must report the transaction to RBI. Government route investments (those exceeding the 400% net worth limit or in sectors requiring approval) require prior RBI or government clearance. KDP manages the complete pre-remittance compliance process.
Every Indian entity that has made an overseas direct investment is required to file an Annual Performance Report (APR) with the Reserve Bank of India for each financial year, covering the financial performance of the overseas entity, dividend remittances received, and the current investment position. The APR must be filed by 31 December of each year for the preceding financial year. Failure to file APRs is a FEMA contravention. KDP manages APR filing for all overseas entities on behalf of its clients.
Yes. Indian tax residents holding any foreign asset, including shares in an overseas company, a foreign bank account, or an interest in a foreign trust, are required to disclose these assets in Schedule FA of their Indian income tax return. Non-disclosure is treated as a violation under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which carries severe penalties. KDP ensures that all Schedule FA disclosures are correctly made in the annual Indian income tax return.
Yes. Indian resident individuals can invest overseas in foreign companies under the Liberalised Remittance Scheme (LRS) up to USD 250,000 per financial year. For larger individual investments, the ODI framework applicable to individuals applies. The individual must comply with all FEMA reporting requirements, disclose foreign assets in Schedule FA of the Indian income tax return, and comply with any applicable foreign jurisdiction requirements.
Remitting funds overseas for investment purposes without completing the mandatory ODI filing constitutes a FEMA contravention. FEMA contraventions are subject to compounding by the Reserve Bank of India, with penalties that can be significant. KDP can also assist with RBI compounding applications for prior contraventions to regularise the position.
Indian companies can establish a Wholly Owned Subsidiary (WOS), a Joint Venture (JV) with a foreign partner, a Branch Office, an Offshore Holding Company, or a Step-Down Subsidiary. Each structure carries different liability, tax, and FEMA compliance implications. KDP advises every client on the optimal structure before any incorporation or remittance.
Our team will respond within 24 hours.
