Outbound Direct Investment

Outbound direct investment (ODI) refers to capital investment made by a company or resident entity into business operations outside its home country. This often includes establishing a foreign subsidiary, entering a joint venture, or acquiring a foreign company. Unlike passive financial investment, ODI reflects an active and long-term operational commitment.

ODI is commonly subject to foreign exchange regulations, sector restrictions, and pre-approval requirements in many Asian jurisdictions. For example, investors from China or India may require documentation submission to government bodies before transferring funds abroad. ODI is also distinct in its complexity—requiring tax planning, legal coordination, and market-entry structuring across both home and host countries.

ODI filings can be multilayered and time-sensitive. Companies often struggle with compiling the correct documents, interpreting application formats, and understanding what local regulators in the home country (like SAFE in China or RBI in India) require for outbound investments.

We provide end-to-end assistance for:

• Regulatory coordination with the relevant agencies
• Preparation and translation of submission documents
• Drafting of board resolutions, declarations, and statutory approvals
• Advice on capital flow sequencing and currency exchange compliance
• Alignment of ODI filings with incorporation, tax, and licensing procedures in the host country

Our team liaises between home and host market stakeholders to ensure approvals proceed without unnecessary rework or compliance risk.

Yes. Strategic structuring and international tax planning are critical to outbound investment success, especially for multi-tiered investments or cross-border holding structures. Without proper planning, companies may face double taxation, inefficient profit repatriation, or treaty misuse scrutiny.

Our services include:

• Designing tax-efficient holding company structures
• Assessing applicable Double Taxation Agreements (DTAs)
• Advising on withholding tax, profit repatriation, and capital gains exposure
• Structuring transfer pricing arrangements and intercompany agreements
• Reviewing permanent establishment (PE) risk

We collaborate across legal, tax, and accounting teams to help clients balance operational needs with long-term tax efficiency.

Once an overseas entity is formed, companies are subject to a range of ongoing compliance obligations—many of which differ significantly from those in the home country. These may include monthly accounting, employment reporting, audit requirements, or local director obligations.

Our support may include:

• Bookkeeping and statutory financial reporting
• Local tax filing and VAT/GST compliance
• Payroll and employment documentation
• Assistance with banking, licensing renewals, or regulatory changes
• Coordination with third-party auditors, legal counsel, and HR partners

We act as your in-market support team to ensure business continuity and reduce operational burden in unfamiliar environments.

Outbound investment involves a wide range of risks—legal, operational, financial, and geopolitical. These risks can vary dramatically depending on the investor’s home country, the destination market, and the nature of the investment.

Some typical risks include:

• Capital controls or transfer restrictions in the home market
• Lack of enforcement of contracts or IP protection in the host market
• Regulatory volatility or sectoral restrictions abroad
• Hidden liabilities uncovered post-acquisition
• Mismatch in governance standards or partner expectations

We support clients in identifying these risks through pre-deal due diligence, jurisdictional risk mapping, and legal and tax scenario planning.