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Setup Company Outside India | Global Company Formation & Overseas Expansion Advisory | N D Savla & Associates
Global Expansion

Setup Company Outside India
Advisory for Global Company Formation & Overseas Expansion

Practical, end-to-end advisory for Indian businesses and residents looking to incorporate a company abroad — jurisdiction selection, entity structuring, Overseas Direct Investment (ODI) & FEMA compliance, AD bank coordination, and cross-border reporting.

Part of our broader practice: Business Setup ODI Services FEMA Advisory LRS

What Does It Mean to Set Up a Company Outside India?

To set up a company outside India means an Indian entity or resident incorporating a company in a foreign country — typically as a wholly owned subsidiary, a joint venture with a foreign partner, or a holding company abroad. It is the outbound mirror of a foreign company setting up an Indian subsidiary here.

Because it involves sending capital abroad, setting up a company outside India is governed by India's foreign exchange framework under FEMA. The investment is usually made as an Overseas Direct Investment and routed through an AD bank. Two sets of rules apply at once — the Indian outbound regulations and the local laws of the country where the company is set up.

As part of our wider business setup services, our outbound advisory also connects with foreign branch setup and liaison office support, so you choose the right route for your goals.

Why Set Up a Company Outside India?

Indian businesses choose to set up a company outside India for several strategic reasons. The right overseas structure can open doors that are hard to reach from India alone.

Global Market Access

A local presence to win and serve customers in target markets directly.

Serving International Clients

Contract and invoice through an entity in the client's region for smoother operations.

Holding Company Structures

A holding company abroad to hold investments, IP, or subsidiaries across geographies.

Access to Foreign Capital

Easier fundraising from international investors and venture funds through a local entity.

Credibility & Ease of Business

A recognised local entity in a business-friendly jurisdiction builds trust with partners and clients.

Tax & Repatriation Planning

Structuring with the benefit of tax treaties and clear repatriation routes back to India.

Choosing the Right Jurisdiction

There is no single best country — the right jurisdiction depends on your market, tax position, and long-term goals. Weigh the tax treaty (DTAA) position, corporate tax, compliance burden, ease of repatriation, banking, and the credibility the location gives your business.

USA

Access to the world's largest market and capital — often via Delaware Inc or LLC, suited to startups and tech.

UK

A credible, well-regulated base for European and global business with straightforward private limited company setup.

Singapore

A leading Asian hub with strong treaty networks and ease of doing business — popular for holding companies.

UAE

A tax-efficient gateway to the Middle East with mainland and free zone options such as Dubai.

The FEMA and ODI Framework for Overseas Investment

Every outbound investment from India runs through the FEMA overseas investment framework. Understanding it is essential, because compliance here protects the whole structure.

01

Overseas Direct Investment (ODI)

Investment by an Indian entity in the equity of a foreign company — subsidiary, JV, or holding company. Our ODI service manages the entire route.
FEMA Framework
02

Liberalised Remittance Scheme (LRS)

The route through which a resident individual can invest abroad within the annual limit. Our LRS service handles the position for individuals.
03

Automatic vs Approval Route

Most investments are allowed under the automatic route within prescribed financial commitment limits; larger or restricted cases need the approval route from RBI.
04

AD Bank Routing

The investment and remittance are processed through an Authorised Dealer bank, which handles the remittance and the reporting to the Reserve Bank of India.
05

Ongoing Reporting

Filings such as Form FC, the Unique Identification Number (UIN), the Annual Performance Report (APR), and the Foreign Liabilities and Assets return where applicable.
RBI Compliance

How to Set Up a Company Outside India

The sequence brings together the jurisdiction decision, the FEMA route, and the incorporation abroad into one clear path.

01

Define Objective & Choose Jurisdiction

Clarify your goals and select the country based on market, tax, and ease of doing business.
02

Choose Entity Structure Abroad

Decide on a wholly owned subsidiary, joint venture, or holding company structure.
03

Check FEMA ODI Route & Limits

Confirm whether the investment is under the automatic or approval route, within the financial commitment limits.
04

Remit Funds Through AD Bank

Route the investment through an Authorised Dealer bank, using LRS for resident individuals where applicable.
05

Incorporate the Company Abroad

Complete the incorporation in the chosen foreign jurisdiction with the required documentation.
06

Complete Post-Investment Compliance

File Form FC, obtain the UIN, and maintain the Annual Performance Report and other ongoing compliance.
FEMA Reporting

Our Broader Cross-Border & Business Setup Practice

Common Questions on Setting Up a Company Outside India

Can an Indian company or resident set up a company outside India?
Yes. An Indian company can set up a company outside India by making an Overseas Direct Investment (ODI) in a foreign entity, and a resident individual can invest abroad under the Liberalised Remittance Scheme (LRS). Both routes are governed by FEMA and are usually processed through an Authorised Dealer (AD) bank. In most sectors the investment is permitted under the automatic route, without prior RBI approval, subject to the prescribed limits and reporting.
What is Overseas Direct Investment (ODI)?
Overseas Direct Investment (ODI) is investment by an Indian entity or resident in the equity capital of a foreign company, such as a wholly owned subsidiary or a joint venture abroad. It is governed by FEMA's overseas investment framework and routed through an AD bank, with the investment reported to the Reserve Bank of India. ODI is the main route through which an Indian business sets up and funds a company outside India.
Is RBI approval needed to set up a company outside India?
In most cases, prior RBI approval is not needed, because the investment falls under the automatic route subject to the prescribed financial commitment limits. The transaction is routed through an AD bank, which handles the remittance and reporting. Certain cases, such as investments above the limits or in restricted sectors, require the approval route. Post-investment compliance, including Form FC and the Annual Performance Report, remains mandatory.
Which is the best country to set up a company from India?
There is no single best country; the right jurisdiction depends on your business goals, target market, tax position, and ease of doing business. Popular choices for Indian businesses include the USA, the UK, Singapore, and the UAE, each offering different advantages in terms of market access, taxation, repatriation, and credibility. The choice should be made after weighing the tax treaty position, compliance burden, and long-term plans.
What documents are required, and what compliance follows after setup?
Documents typically include identity and address proof of the directors and shareholders, the proposed company details, the business plan, and the board resolution authorising the investment, along with the AD bank's forms for the remittance. After setup, ongoing compliance includes FEMA reporting such as Form FC and the Annual Performance Report (APR), the Foreign Liabilities and Assets return where applicable, and the local compliance of the foreign company in its jurisdiction.

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From jurisdiction selection and entity structuring to ODI and FEMA compliance, AD bank coordination, incorporation abroad, and ongoing cross-border reporting — we help you plan and manage overseas expansion with clarity.

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