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Frequently Asked Question
Yes — Indian outbound FDI into EU is permitted under FEMA (Foreign Exchange Management Act). Process: (1) Indian company obtains FEMA approval (automatic route for most sectors up to 400% of net worth), (2) Register company in EU country — Portugal, Netherlands, Ireland are popular for Indian companies due to tax treaties and business-friendly environments, (3) Report ODI (Overseas Direct Investment) to RBI, (4) Repatriate dividends and profits to India (Indian company pays tax on overseas income). India-EU Bilateral Investment Treaties (BITs) with individual EU member states provide investment protection until India-EU FTA investment chapter replaces them.
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