RBI ODI Rules 2022 Compliant
Atlas, Firstbase & Doola
Don't Work for
Indian Founders.
StartEase Does.
Why US Platforms Don't Work for Indian Founders Anymore
In 2022, RBI released comprehensive ODI regulations that fundamentally changed how Indian residents can invest in foreign entities. Atlas, Firstbase, Doola, and similar platforms simply weren’t designed with these requirements in mind.
Payment Violations
Under ODI 2022, even paying Atlas/Firstbase/Doola incorporation fees could be considered overseas direct investment requiring prior RBI approval.
US Platforms Reality
US platforms like Atlas, Firstbase, and Doola aren’t designed for Indian residents. They ignore Form ODI, APR/FLA reporting, and FEMA compliance requirements.
Complex Structuring
ODI regulations require specific corporate structures that differ significantly from standard US incorporation approaches used by these platforms.
Legal Counsel Required
RBI strongly recommends working with attorneys familiar with ODI regulations—something US-only platforms cannot provide.
Official RBI Guidance (2022)
"Complying with ODI regulations is complex and often requires a corporate structure that differs from the structure used in Atlas.
It's important to note that under the ODI regulations, even paying the fee to incorporate a US company could be considered an overseas direct investment."
"RBI Recommendation: "If you or one of your co-founders reside in India, we strongly encourage you to work with an attorney familiar with ODI regulations."
Real Founder Story
"We used Firstbase thinking it was the same as Atlas. Got an RBI notice 18 months later for non-compliant ODI structure.
Had to restructure everything, pay penalties, and nearly lost our Series A.
The legal fees alone were ₹25 lakhs. These platforms just don't understand Indian law."
— Seaml Fintech Founder, Mumbai
Common Founder Compliance Mistakes
These regulatory oversights can cost millions and block your global growth
Missed Form ODI Filing
Investment becomes non-compliant, penalties up to 3x investment amount
High Risk
Unreported FDI Transactions
RBI penalties, compliance notices, blocked repatriation
High Risk
Delayed APR/FLA Submissions
Daily penalties accumulating, future ODI applications rejected
Medium Risk
Incorrect Transfer Pricing Documentation
IT Department penalties, transfer pricing adjustments
High Risk
Non-compliant ESOP Structures
Money stuck abroad, unable to exercise/sell options
High Risk
Real Impact: Penalties Up to 3x Investment Amount
Recent RBI enforcement actions have resulted in penalties ranging from ₹50 lakhs to ₹25+ crores for non-compliant ODI structures. Don't let regulatory oversights cost you your business.
Why StartEase vs Others:
The ODI Compliance Gap
US platforms handle basic incorporation but miss 70% of what Indian founders need for legal compliance. Here’s the complete comparison including ODI 2022 requirements.
| Feature | ⭐ StartEase | Stripe Atlas | Firstbase | Doola |
|---|---|---|---|---|
| C-Corp/LLC Setup | ✔ | ✔ | ✔ | ✔ |
| EIN & Bank Account | ✔ | ✔ | ✔ | ✔ |
| State Registration | ✔ | ✔ | ✔ | ✔ |
| Form 1120 Support | ✔ | ✘ | ✘ | ✘ |
| Feature | ⭐ StartEase | Stripe Atlas | Firstbase | Doola |
|---|---|---|---|---|
| Pre-incorporation ODI guidance | ✔ | ✘ | ✘ | ✘ |
| Legal payment structure setup | ✔ | ✘ | ✘ | ✘ |
| LLP/Indian entity structuring | ✔ | ✘ | ✘ | ✘ |
| Form ODI filing & approval | ✔ | ✘ | ✘ | ✘ |
| Feature | ⭐ StartEase | Stripe Atlas | Firstbase | Doola |
|---|---|---|---|---|
| APR/FLA annual reporting | ✔ | ✘ | ✘ | ✘ |
| ITR Schedule FA support | ✔ | ✘ | ✘ | ✘ |
| FEMA compliance monitoring | ✔ | ✘ | ✘ | ✘ |
| CA expert access | ✔ | ✘ | ✘ | ✘ |
The Compliance Reality
Atlas, Firstbase, and Doola get you ~30% compliant for Indian founders. StartEase gets you 100% ODI-compliant from day one. The choice is clear when RBI penalties are ₹10-50 lakhs per violation.
Success Stories from
Compliant Founders
Real founders who chose compliance-first US expansion
"We were burned by Stripe Atlas—got RBI notices, penalty fees, and nearly lost our Series A. StartEase fixed everything in 90 days. Their CA team knows both US and Indian law inside out. Now we're fully compliant and focused on growth, not legal fires."
Rohit Krishnan
Founder, LogiFlow SaaS
$2M ARR • YC W21
"After struggling with Doola's lack of India-specific guidance and high renewal fees, StartEase was a breath of fresh air. They helped us understand FEMA implications and set up proper compliance from day one."
Ananya Sharma
Co-founder, FinTech Startup
Pre-Series A • 50K+ users
Join 200+ Compliant Founders
Indian founders who chose the compliant path to US expansion
Understanding ODI Compliance:
Your Legal Obligations
Indian founders expanding to the US must navigate complex RBI regulations. Here’s what Form ODI Report and APR Filings actually mean for your business and why compliance is critical.
Form ODI Report
Mandatory RBI Approval Process
Form ODI is the primary document required under RBI’s ODI regulations for Indian residents investing in foreign entities. This form must be filed before making any overseas investment.
Timeline: 30-45 days processing time
Penalty: ₹10 lakh penalty for non-compliance
Key Requirements:
- Required for any investment exceeding $1 million or acquiring 10% or more shares
- Must be filed within 30 days of board resolution
- Requires detailed business plan and financial projections
- AD Bank certification and RBI approval needed
APR Filings
Annual Performance Reporting
Annual Performance Report (APR) is a mandatory annual filing for all ODI investments to track performance and compliance with RBI regulations.
Timeline:Due annually by July 15th
Penalty: ₹1 lakh penalty for delayed filing
Key Requirements:
- APR due by 15th July each year for previous financial year
- Audited financial statements of overseas entity required
- Requires detailed business plan and financial projections
- Consolidated financials for multiple overseas investments
Your One-Stop Solution for US Company Incorporation
We handle everything from initial setup to ongoing compliance, so you can focus on growing your business.
Seamless Incorporation
Incorporate your US entity without ever leaving India. We handle all paperwork and filings.
RBI/FEMA Compliance
Stay fully compliant with all RBI regulations for overseas direct investment.
Hassle-Free Paperwork
We manage all documentation, from incorporation certificates to compliance reports.
Ongoing Support
Get continuous support for all your compliance and regulatory needs.
Global Expansion
Expand your business globally with confidence, knowing you’re fully compliant.
Compliance Tracker
Key upcoming compliance forms and their penalties for non-compliance
| Form/Return | Description | Penalty for Delay |
|---|---|---|
| Form ODI | Outward Direct Investment Application Due: Before investment |
₹10,000 per day delay + 3x investment amount |
| APR | Annual Performance Report Due: 30th June annually |
₹5,000 per day delay |
| FLA | Foreign Liability & Assets Return Due: 31st July annually |
₹10,000 – ₹1,00,000 |
| FC-GPR | Foreign Investment Reporting Due: 30 days from investment |
₹10,000 per day delay |
| FC-TRS | Transfer of Security to NRI/FPI Due: 30 days from transfer |
₹25,000 + ₹2,000 per day |
| ARF | Annual Return on FDI Due: 31st July annually |
₹10,000 per day delay |
| ECB-2 | ECB Quarterly/Annual Returns Due: 15th of following month |
₹5,000 per day delay |
| Form 3CEB | Transfer Pricing Economic Analysis Due: 30th November |
₹1,00,000 to ₹5,00,000 |
Founder's Guide
Going Global? Here's What You Need to Know
Simple explanations of ODI and FDI for Indian founders expanding to US, UK, UAE, or Singapore
ODI (Outward Direct Investment)
What it means:
When you (Indian resident) invest money to start or buy a company abroad
Example:
You invest ₹50 lakhs to start a Delaware C-Corp in the US
Can't Invest Directly as Individual
You must invest through an Indian LLP or Company structure - direct personal investment is not allowed
LLP Required for Reinvestment
If your foreign company will reinvest back into India, you MUST use LLP structure (not Pvt Ltd) for ODI
Investment Limits
Automatic route: Up to $1M per year. Above $1M needs RBI approval
Minimum Indian Holding
Your Indian entity must hold minimum 10% in the foreign company to qualify as ODI
FDI (Foreign Direct Investment)
What it means:
When your foreign company invests money back into India
Example:
Your US company invests $100K into your Indian subsidiary
30-Day Reporting Rule
Must file FC-GPR/FC-TRS within 30 days of investment - no exceptions
Automatic vs Approval Route
Most sectors allow 100% FDI on automatic route. Some need government approval
Sectoral Caps Apply
E-commerce (marketplace): 100%, Banking: 74%, Insurance: 74%, Defense: 74%
Round-tripping Rules
Your foreign company investing back is considered "round-tripping" - special compliance needed
Get ODI-Compliant US Expansion Strategy
30-minute consultation with our CA-ODI expert to review your situation, explain 2022 regulations, and design your compliant expansion roadmap. Plus get our comprehensive ODI founder report.
CA-ODI Expert Call
Direct consultation with our Chartered Accountant who specializes in ODI Rules 2022, FEMA compliance, and US-India tax structures.
Compliance Clarity
Understand exactly why Atlas/Firstbase/Doola don't work for Indians, what ODI compliance means, and legal ways to pay incorporation fees.
Custom Roadmap
Get a personalized compliance roadmap with timelines, costs, and step-by-step guidance for your specific business model and expansion goals.