Skip to main content
Overseas Investment in UAE: FEMA ODI Rules and Compliance
Back to Court News
Reserve Bank of Indiacorporateforeign_exchange

Overseas Investment in UAE: FEMA ODI Rules and Compliance

October 10, 2026

Guide to Overseas Direct Investment (ODI) in UAE under FEMA, covering LRS limits, 400% financial commitment rule, UIN, and exit compliance.

Overseas Investment in UAE: FEMA ODI Rules and Compliance

This guide outlines regulatory requirements for Indian entities and individuals making overseas investments in the UAE under FEMA’s Overseas Direct Investment (ODI) framework. It includes compliance with the Liberalised Remittance Scheme (LRS) and the 400% financial commitment rule, which links ODI eligibility to net worth.

Key reporting obligations involve obtaining a Unique Identification Number (UIN), filing FC-GPR and annual ODI returns, and compliance with downstream investment tracking. Authorised Dealer (AD) banks play a critical role in vetting transactions and ensuring adherence to valuation and sectoral restrictions.

The framework prevents circumvention of capital controls through opaque structures. Legal practitioners must conduct thorough due diligence on recipient entities and ensure timely reporting to avoid penalties under FEMA Section 13.

Practice Areas:corporateforeign_exchange

Related Articles

View All →
Tax Classification Based on Form at Sale: Supreme CourtFeatured
Supreme Court of Indiataxcorporate

Tax Classification Based on Form at Sale: Supreme Court

The Supreme Court held that tax classification of goods must be determined by their physical form at the time of sale, not by the end-use or intended application by consumers.

Oct 14, 2026Read more →
Tax Classification Based on Form at Time of Sale, Not End Use: SCFeatured
Supreme Court of Indiataxcorporate

Tax Classification Based on Form at Time of Sale, Not End Use: SC

The Supreme Court held that tax classification of goods must be determined by their physical form at the time of sale, not by the buyer's ultimate use, clarifying long-standing confusion in tax jurisprudence.

Oct 12, 2026Read more →
SBI Liable for TDS on Foreign LTC BenefitsFeatured
Supreme Court of Indiataxlabour

SBI Liable for TDS on Foreign LTC Benefits

Supreme Court held that foreign-leg Leave Travel Concession (LTC) benefits are not exempt under Section 10(5) and SBI must deduct TDS on such reimbursements.

Oct 9, 2026Read more →
Overseas Investment in UAE: FEMA ODI Rules and Compliance | Gatim AI Court News | Gatim AI