The amount of funds you can legally send from India to your Dubai company depends on who is investing (an individual or an Indian company) and must comply with FEMA (Overseas Investment Rules, 2022).
✅ 1. If YOU Are an Indian Resident Individual
You can invest in a Dubai company under the Liberalised Remittance Scheme (LRS) + ODI (Overseas Direct Investment) Rules, but only if:
- The Dubai company is a Wholly Owned Subsidiary (WOS) or Joint Venture (JV).
- The Dubai company is engaged in a bonafide business activity (not in real estate, gambling, forex brokerage, etc.).
- You are doing strategic investment (i.e., own at least 10% of equity or have control rights).
💸 LRS Limit for Individuals:
| Limit | Amount |
|---|---|
| Annual LRS limit | USD 250,000 (~₹2.08 crore/year) per individual |
You can invest this amount per financial year, and it’s subject to ODI filing (Form FC + ODI Part I).
👉 Spouse or family members can also remit separately if they co-invest (each gets USD 250,000 per year under LRS).
✅ 2. If an Indian Company Is Investing (Not Individual)
Under ODI by Indian entities, there’s no fixed dollar limit, but it must follow this rule:
Total financial commitment (FC) cannot exceed 400% of the net worth of the Indian company as per the latest audited balance sheet.
📊 Example:
If your Indian company has ₹1 crore net worth, you can invest up to ₹4 crore in total ODI (including loans, equity, guarantees).
But investment must be:
- In a foreign JV/WOS
- For bonafide business
- Not in prohibited sectors (real estate, gambling, etc.)
- Reported via ODI forms and supported by:
- Board Resolution
- Valuation (if applicable)
- KYC, UIN, APR filings
🧾 Repatriation Requirement
- Dividends/profits should ideally be repatriated to India regularly, especially if the Dubai company earns income.
- You must file APR (Annual Performance Report) each year with your AD Bank.
⚠️ You Cannot Use LRS for:
- Personal forex or crypto trading
- Buying real estate abroad
- Setting up a brokerage or speculative company
Even for Dubai, RBI mandates ODI compliance if equity is being invested.
✅ Summary Table
| Investor Type | Limit per Year | Route | Notes |
|---|---|---|---|
| Individual | USD 250,000 | LRS + ODI | Must file Form FC + ODI Part I |
| Company (Indian) | 400% of Net Worth | ODI Route | Needs Board Resolution, UIN, etc. |
| Individual via LRS for forex trading | ❌ Not Allowed | – | Violates FEMA |
Would you like:
- A cost estimate to set up a Dubai company for proprietary trading?
- A step-by-step compliance guide for your bank and CA?
- Help drafting the necessary ODI Forms and Board Resolution?
Let me know — I can prepare a full checklist or RBI-compliant structure for you.
