What are the ODI regulations with regards to US Incorporation?

The Overseas Direct Investment (ODI) regulations, introduced in August 2022 by the Reserve Bank of India (RBI), outline how Indian residents can legally invest in companies abroad.

Under these rules, Indian individuals cannot directly own or control shares in a foreign entity. Instead, they are typically required to set up an Indian Limited Liability Partnership (LLP) first. This LLP then becomes the investor in the foreign (e.g., US) company—holding shares and acting as the official shareholder.

Skipping this step and investing in a foreign company directly as an individual can violate India’s foreign exchange laws, potentially leading to legal penalties and regulatory complications.

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