Expanding Business Outside India​

Expanding a business internationally is a major strategic move that can unlock new markets, revenue streams, and global partnerships. However, it also introduces complex regulatory, tax, operational, and compliance challenges—both in India and in the foreign jurisdiction. For Indian businesses, especially in sectors like Information Technology, Pharmaceuticals, Manufacturing, E-commerce, and Startups, going global can elevate brand reputation and valuation, but requires thorough planning, due diligence, and cross-border regulatory understanding.

Key Considerations Before Expanding Globally

Before incorporating a subsidiary, joint venture, or branch office outside India, companies must evaluate several strategic and operational dimensions:

In-depth Market and Regulatory Analysis

Understand the political, economic, and legal environment of the target country. Study sector-specific regulations, business restrictions, labor laws, tax treaties, and ease of doing business.

Business Project Planning

Develop a detailed business expansion roadmap, including capital requirements, timelines, project deliverables, risk assessments, and projected ROI.

Identification of Core and Non-core Functions

Decide what operations will be handled in-house and what can be outsourced or offshored, such as IT, payroll, marketing, logistics, and customer support.

Organizational Impact Analysis

Evaluate the impact on existing HR, operations, and financial controls. Cross-border expansion often demands changes in reporting structures, IT systems, and internal policies.

International Branding and Marketing Strategy

Localize your brand positioning, digital strategy, and communication plans to suit the culture and preferences of the new geography.

Due diligence, legal structuring, tax planning, and compliance readiness are critical to successful international expansion.

Areas of Practice – Assisting Indian Businesses Going Global

Our firm has advised and assisted numerous Indian companies—especially from the IT and services sector—in expanding operations globally. While we provide consulting and legal structuring, we also ensure that Indian regulatory obligations are met diligently.

  • Assistance in obtaining regulatory approvals from RBI, Ministry of Finance, and other authorities (if required)
  • Evaluating sectoral caps, automatic vs. approval route, and reporting obligations
  • Structuring investments as equity capital, loans, or guarantees
  • End-to-end support in complying with RBI’s ODI Master Directions
  • Advisory on permissible overseas investment routes:
    • Wholly-Owned Subsidiary (WOS)
    • Joint Venture (JV)
    • Branch Office (BO) or Project Office
  • Documentation and filing of:
    • Form ODI Part I & II (investment and financial commitment details)
    • Board resolutions, valuation reports, and net worth certificates
  • Assessment of eligibility under the automatic route vs. approval route

Adherence to sector-specific restrictions and prohibited activities

  • Annual filing mandated by the Reserve Bank of India (RBI) under FEMA for all Indian entities which have received FDI or made ODI
  • Preparation and submission of Form FLA via RBI’s web-based portal
  • Classification of assets and liabilities as per International Investment Position (IIP) standards

Ensuring timely filing (usually by 15th July each year) to avoid penalties

  • Advisory under the Foreign Exchange Management Act (FEMA), 1999
  • Classification of cross-border transactions:
    • Current Account vs. Capital Account
  • Structuring international transactions to ensure compliance with FEMA rules
  • Transfer pricing alignment in ODI and inter-company arrangements
  • Handling compounding applications in case of non-compliance

How We Add Value to Global Business Expansion

In-depth understanding of cross-border regulations, FEMA, and RBI policies

Strong network of international legal and tax experts for jurisdiction-specific advice

Practical, business-focused solutions tailored to technology, manufacturing, and services sectors

Support across lifecycle—from planning, structuring, and execution to post-establishment compliance