Outbound Investment Structuring Services

Overview of Outbound Investment Structuring

As businesses expand globally, Outbound Investment Structuring has become a critical strategy for companies looking to establish or acquire operations outside their home country. Outbound investments refer to financial commitments made by domestic entities into foreign businesses, such as setting up subsidiaries, joint ventures, or acquiring assets abroad.

For Indian businesses, outbound investment is governed by FEMA, RBI guidelines, and international tax treaties, ensuring regulatory compliance, tax efficiency, operational flexibility, and strategic global growth.

Eligibility Criteria

1. Eligible Investors

• Indian companies registered under the Companies Act
• LLPs and partnership firms
• Resident individuals under LRS
• Trusts and societies (with approval)

2. Eligible Investments

• Wholly-owned subsidiaries abroad
• Joint ventures
• Portfolio investments
• Acquisition of foreign property

3. Financial Thresholds

• Companies: Up to 400% of net worth
• Individuals: USD 250,000/year under LRS

4. Restrictions

• Investments in restricted or high-risk jurisdictions need RBI approval
• Prohibited industries cannot receive investment

Types of Outbound Investment Structuring

1. Wholly-Owned Subsidiary (WOS)

Complete ownership and full operational control abroad.

2. Joint Ventures (JV)

Partnership with foreign entities to share risk and expertise.

3. Special Purpose Vehicles (SPVs)

Used for acquisitions, financing, and strategic holding structures.

4. Holding Company Structure

Creation of intermediate holding companies in tax-efficient jurisdictions.

5. Branch or Representative Office

Used for marketing, liaison, or limited operational functions.

6. Portfolio Investments

Investment in foreign shares, bonds, and other financial instruments.

Advantages of Outbound Investment Structuring

• Global market expansion
• Diversification of business risks
• Tax-efficient business structuring
• Access to global talent and resources
• Enhanced brand presence
• Optimized capital allocation
• Strategic partnerships with global players
• Long-term value creation

Requirements for Outbound Investment Structuring

• Board and shareholder approvals
• Regulatory approvals if required
• Independent valuation reports
• Tax and legal due diligence
• Compliance with FEMA and LRS rules
• Proper entity selection
• Defined exit and repatriation strategy

Document Requirements

From Indian Entity

• Certificate of Incorporation
• MOA/AOA
• Board and shareholders’ resolutions
• Audited financial statements

Regulatory Filings

• Form ODI
• Valuation reports
• Remittance proofs

Host Country Compliance

• Incorporation documents
• Tax registrations
• JV/Shareholder agreements

Process of Outbound Investment Structuring

Step 1: Strategic Planning

Define global expansion objectives and target countries.

Step 2: Feasibility Study

Analyze legal, tax, and compliance factors.

Step 3: Entity Selection

Choose WOS, JV, branch, or holding company.

Step 4: Regulatory Approvals

File Form ODI and obtain necessary RBI approvals.

Step 5: Valuation & Funding

Get independent valuation and select funding mode.

Step 6: Documentation

Execute agreements and remit funds legally.

Step 7: Post-Investment Compliance

APR filing, tax reporting, and regulatory compliance.

Step 8: Monitoring & Repatriation

Track performance and repatriate profits as per FEMA.

Why Choose Subrudhi for Outbound Investment Structuring?

Subrudhi provides expert advisory in international investment structuring, ensuring full compliance with FEMA, RBI, and global tax regulations. Our experienced team handles entity setup, documentation, valuation, regulatory filings, and cross-border tax planning for smooth global expansion.

With transparent pricing and end-to-end support, Subrudhi ensures your international investment journey is compliant, tax-efficient, and strategically beneficial.

Frequently Asked Questions