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Overseas Direct Investment or ODI is an investment made by an Indian Person or Resident Individual outside India in a Joint Venture (JV) or Wholly Owned Subsidiary (WOS) either under Automatic Route or Approval Route. The investment can be in the form of contribution to capital, subscription to memorandum of a foreign company, or acquisition of existing shares of a foreign entity.
Overseas Direct Investment can be made under Automatic Route or under Approval Route.
Under Automatic Route, ODI can be done without obtaining a prior approval from RBI. For doing overseas direct investment, Form ODI-Part I along with Form A2 of respective is required to be filed.
Under Approval Route, the person has to approach to concerned AD Bank for submission of the proposal to RBI along with relevant supporting documents.
Once investment has been done, Indian Parties are required to file following 2 forms with RBI on annual basis:
APR is to be filed separately for each JV or WOS by Indian Party or Resident Individual.
Due Date: 31st December for preceding financial year
Non-filing/delay in filing of the APR on or before the due date will be treated as a violation of FEMA and late submission fees (LSF) as per Regulation 11 of Overseas Investment Regulations shall apply.
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