Incorporation

ODI Transfer: Register Your US Entity from India

Satya YeruvaBy Satya Yeruva
Satya Yeruva

Satya Yeruva

Co-Founder & CEO

Satya Yeruva is the CEO and Co-Founder of FinStackk, where he helps businesses navigate U.S. accounting, taxation, compliance, and financial operations. As both a Certified Public Accountant (CPA) in the United States and a Chartered Accountant (India), Satya brings expertise in establishing, expanding, and managing U.S. business operations, along with cross-border financial reporting, corporate taxation, regulatory compliance, and financial advisory.

·November 28, 2024

Indian Business Entity Owner? Register or Expand Your Company in the US

As per RBI & FEMA guidelines, it is mandatory for you to transfer your share capital value amount to the US entity that you register through ODI (Overseas Direct Investment) transfer. And this is mandatory, for Indian governing bodies to recognise your Indian person / entity as a shareholder in the US entity. But this is something Indian companies miss out on, in most cases.

Skipping the official ODI transfer can create a legal and financial minefield.

Here's why ignoring ODI is a bad idea:

Non recognition: India regulatory bodies doesnt recognize your US entity leading to troubles when you go for funding / exit.
Penalties: Non-compliance with RBI rules triggers fines, penalties, or even business shutdown.
Funding limitations: No proper ODI docs? No access to loans or credit to fuel your growth.
Investor due diligence: Red flag during due diligence process of investment or M&A.

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Satya Yeruva

Satya Yeruva

Co-Founder & CEO

Satya Yeruva is the CEO and Co-Founder of FinStackk, where he helps businesses navigate U.S. accounting, taxation, compliance, and financial operations. As both a Certified Public Accountant (CPA) in the United States and a Chartered Accountant (India), Satya brings expertise in establishing, expanding, and managing U.S. business operations, along with cross-border financial reporting, corporate taxation, regulatory compliance, and financial advisory.

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