ODI: Overseas Direct Investment Declaration
Prepare the cover letter and particulars for an Indian company's or individual's investment in a foreign entity under the overseas investment rules.
What it is
Investment by an Indian party in the equity of a foreign entity, giving control or a stake of 10% or more, is overseas direct investment (ODI). It is governed by the Foreign Exchange Management (Overseas Investment) Rules, 2022 and Regulations, 2022 and the RBI directions. The investment is made through an authorised dealer bank, reported in Form ODI, and later followed by annual performance reports. This template prepares the particulars: the Indian party, its net worth, the overseas entity, the investment and the funding source.
When it is used
- An Indian company setting up or acquiring a foreign subsidiary.
- Investment in a joint venture abroad.
- Resident individuals making ODI in an operating foreign company.
What the template covers
- Indian party name, PAN, CIN and address
- Net worth as per the last audited balance sheet
- Overseas entity name, country and business
- Type and amount of investment
- Shareholding in the overseas entity
- Funding source, AD bank and authorised signatory
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Letter
Letter Date
Indian Party
Indian Party Name; PAN; CIN (if company); Address; Net Worth as per last audited B/S (₹)
Overseas Investee (JV/WOS)
Overseas Entity Name; Country; Address; Sector / Business Activity
Investment
Type of Investment; Investment Amount (USD); Shareholding % in Overseas Entity; Source of Funding
AD Bank
Authorised Dealer Bank
Signatory
Authorised Signatory; Designation
Stamp duty, registration and filing
The total financial commitment of an Indian entity is limited to 400% of its net worth, and investment in certain sectors or structures is restricted. Annual performance reports are filed by 31 December each year. Late reporting attracts late submission fees and may restrict further investment. Check the current rules on rbi.org.in.
Generate the ODI — Overseas Direct Investment Declaration
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. the MCA e-form filing)? Contact SKAG and Associates
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Frequently asked questions
What is the limit for ODI by an Indian company?
Financial commitment up to 400% of net worth under the automatic route, subject to conditions.
Can an individual make ODI?
Yes, in an operating foreign entity, within the LRS limit and subject to conditions.
What is an annual performance report?
A report on the overseas entity's performance filed every year by the Indian party through the AD bank.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.