Global Expansion Strategy Services – Outbound Business Solutions in Mumbai
Global Expansion Strategy (Outbound): Taking Your Indian Business to the World
From Local Leader to Global Player. We Architect Your International Expansion for Seamless Compliance and Strategic Success.
For ambitious Indian companies, the next stage of growth lies beyond national borders. However, overseas expansion is governed by stringent regulations under the Foreign Exchange Management Act (FEMA), and mistakes can be costly. Our service provides the expert framework to take your business international, ensuring overseas investments are structured correctly, fully compliant, and strategically aligned with your long-term objectives.
What We Deliver:
1. Overseas Direct Investment (ODI) Compliance
We provide end-to-end advisory on FEMA regulations, handling all required filings — including Form ODI and Annual Performance Reports (APRs) — to keep your overseas ventures fully compliant with RBI mandates.
2. Foreign Subsidiary & Branch Setup
We guide you through establishing a legal presence abroad, advising on the optimal entity structure (e.g., Corporation vs. LLC in the US), managing incorporation, and ensuring all local tax and regulatory registrations are handled correctly.
3. Outbound Remittance & Repatriation Strategy
We design tax-efficient structures for funding your foreign ventures and repatriating profits or dividends back to India — fully compliant with FEMA while minimizing global tax exposure.
Entering the Indian market felt overwhelming. The regulations seemed to change by state, and we didn't know where to begin. The team provided a complete India Entry blueprint—from market feasibility and entity structuring to navigating RBI approvals. They acted as our team on the ground, turning a complex process into a clear, manageable project. We were operational months ahead of schedule.
We wanted to set up a subsidiary in the US to serve our North American clients. The FEMA and RBI compliance seemed like a maze. The firm handled our entire Overseas Direct Investment (ODI) filing, ensuring we were fully compliant. They didn't just file forms; they structured the investment for optimal tax efficiency under the DTAA, saving us significant tax leakage from day one.
Vijay R Singh & Co. helped the client achieve accurate and timely financial reports, resulting in quicker decision-making and a clearer picture of cash flow and compliance. Their team was professional, responsive, flexible, and personable. They also explained things patiently.
Frequently Asked Questions
Any investment outside India by an Indian entity falls under FEMA regulations. Non-compliance can result in penalties and restrictions on future overseas operations.
The right structure depends on your operational needs, tax considerations, and strategic goals. We evaluate your options and recommend the most suitable model.
Timelines vary by jurisdiction. In some countries, incorporation can take 1–2 weeks, while in others it may take 4–6 weeks or longer due to additional regulatory approvals.
Yes, repatriation is allowed but must comply with FEMA guidelines and may involve tax considerations in both India and the host country. We help you plan this efficiently.
It’s possible to regularize past non-compliant transactions through compounding or specific RBI approvals. We guide you through corrective measures to ensure compliance.
Outbound Investment & ODI Compliance
Indian entities and resident individuals investing abroad – structure, FEMA approvals, ODI filings, ongoing reporting under the FEM (Overseas Investment) Rules and Directions 2022.
By CA Vijay R Singh, FCA
ICAI Membership No. 153926 | FRN 136869W | Practising since 2013
Quick Summary
Outbound investment from India is governed by the Foreign Exchange Management (Overseas Investment) Rules 2022 and the FEM (Overseas Investment) Directions 2022, which replaced the earlier FEMA Notification 120/RB-2004 framework. The 2022 regime is more permissive on routes but stricter on reporting – missed Form ODI filings, missed APRs, and round-tripping concerns are now the dominant exposure points.
Strategic Fit: Is this right for you?
Resident Individual LRS
USD 250,000 per FY remittance for permitted purposes.
Indian Companies Abroad
Acquiring foreign subsidiaries, JVs, or equity stakes.
WOS Setup Abroad
Wholly owned subsidiary formation in foreign jurisdiction.
International Structures
Indian holdco building Dubai DIFC, Singapore, Mauritius, Delaware structures.
Startups Global Access
US Delaware C-Corp setups for global market access.
Foreign IP Acquisition
Indian companies acquiring foreign IP, brands, technology.
Final Deliverables Checklist
Everything you receive at the end of the engagement.
- Structure memo - ODI vs LRS, automatic vs approval route, tax positioning
- Sectoral and end-use compliance memo
- Form A2 (LRS) or Form ODI Part I (entity ODI) filing
- AD Bank coordination + UIN allotment
- Annual Performance Report ( APR ) preparation and filing by 31 December
- Event-based Form ODI Part II filings
- Tax structuring memo - CFC, FTC, DTAA application
- Compounding application drafting for past defaults
UNDERSTANDING THE THREE ODI ROUTES
Automatic Route – Entities
Indian companies and LLPs can invest abroad up to 400% of net worth without prior RBI approval, subject to bona fide business, no round-tripping, end-use compliance.
Approval Route – Entities
Investments above 400% net worth ceiling, into restricted sectors, or with structured features. Require prior RBI approval. Timeline 3-9 months.
LRS – Resident Individuals
USD 250,000 per FY per individual. Permitted current and capital account transactions – foreign equity, debentures, real estate, mutual funds. Form A2 at AD Bank.
The Engagement Lifecycle
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Transparent Pricing Structure
Statutory & Third-Party Costs – pass-through, NOT our fees
These are paid directly to government departments, certifying authorities, and banks. They are not VRS professional fees.
- RBI compounding fee: graded by contravention amount and duration (Section 13 FEMA)
- Form A2 / Form ODI filing: nil government fee (AD bank service charges may apply)
- Foreign jurisdiction incorporation fees: borne directly in target country
- DSC / KYC for foreign directors: ~Rs 1,200-Rs 2,000 each
- Late Submission Fee (LSF) for delayed APR: graded by duration
Engagement & Fees
We handle outbound investment end-to-end — ODI structuring, RBI / AD-bank filings, and foreign-subsidiary compliance — scoped to your investment during an initial scoping call.
Fees are confirmed per engagement after the scoping call, based on the scope and complexity involved. You receive a clear, written quote before any work begins — no hidden charges.
Quoted per Engagement
The final quote depends on the scope, volume, and statutory complexity of your specific engagement.
Frequently Asked Questions
What is the LRS limit and what can I do with it?
USD 250,000 per resident individual per FY. Combined across travel, education, medical, investment, gifts, donation, immovable property purchase. The limit is per individual, not per family.
Can my Indian company invest in my US Delaware C-Corp where I am also a shareholder?
Subject to round-tripping rules. If the US C-Corp invests back into Indian operating company or materially returns capital to India, the structure is at risk. We structure case by case with explicit substance reasoning.
I missed an APR filing two years ago. What is the exposure?
Late Submission Fee (LSF) for delayed APR – graded by duration. For substantive non-compliance, compounding under Section 13 FEMA – we draft and file before enforcement notice.
My foreign subsidiary is dormant. Do I still need APR?
Yes. APR is required as long as the ODI investment is on books, even if dormant. Cleaner path for permanently dormant subsidiary is disinvestment + Form ODI Part II.
Can a partnership firm or HUF do ODI?
Partnership firms and HUFs – generally not directly. Partners / karta can do ODI under LRS individual route. For substantive outbound, converting to LLP or Pvt Ltd is cleaner.
Do I need to file Schedule FA in my ITR?
Yes – any resident with foreign assets must file Schedule FA. Missing or incomplete Schedule FA attracts penalty under the Black Money (UFIA) Act 2015.