Question 1

What is cross-border structuring?

Accepted Answer

It is the process of designing business and investment structures across multiple countries to optimize tax and ensure compliance.

Question 2

Why is cross-border structuring important?

Accepted Answer

It helps reduce tax liabilities, avoid double taxation, and ensure smooth global operations.

Question 3

Who should opt for this service?

Accepted Answer

Businesses, startups, and investors with international operations or expansion plans.

Question 4

What is DTAA?

Accepted Answer

DTAA (Double Taxation Avoidance Agreement) is a treaty between countries to prevent the same income from being taxed twice.

Question 5

Can structuring legally reduce taxes?

Accepted Answer

Yes, proper structuring uses legal frameworks and treaties to optimize tax efficiency without violating regulations.

Question 6

What is FDI?

Accepted Answer

FDI refers to investment made by foreign entities or individuals in the equity of an Indian company with a long-term business interest.

Question 7

What are the entry routes for FDI?

Accepted Answer

FDI can be made through the automatic route (no prior approval) or the government approval route, depending on the sector.

Question 8

Is RBI approval required for all FDI investments?

Accepted Answer

No, RBI approval is not required under the automatic route. It is required only for sectors under the approval route.

Question 9

What is FC-GPR?

Accepted Answer

FC-GPR is a mandatory filing made with the RBI to report the allotment of shares to foreign investors.

Question 10

Who can invest in India through FDI?

Accepted Answer

Foreign companies, individuals, NRIs, and other eligible entities can invest in India, subject to FEMA and sectoral regulations.

Question 11

What is Overseas Investment (ODI)?

Accepted Answer

It refers to investing in assets, securities, or businesses outside India in compliance with FEMA regulations.

Question 12

What is the LRS limit for overseas investment?

Accepted Answer

Individuals can invest up to $250,000 per year under LRS.

Question 13

Is overseas investment legal in India?

Accepted Answer

Yes, it is fully legal when done in accordance with FEMA and RBI guidelines.

Question 14

Are taxes applicable on foreign investments?

Accepted Answer

Yes — income and capital gains from foreign investments are taxable in India, subject to applicable laws and DTAA benefits.

Question 15

Who can invest abroad?

Accepted Answer

Resident individuals and eligible businesses complying with regulatory requirements can invest internationally.

Question 16

How can MeraFinanceWala help me with overseas investments?

Accepted Answer

MeraFinanceWala provides end-to-end support for overseas investments, ensuring your funds move globally in a fully compliant and tax-efficient manner.

International Tax & Cross-Border

Cross-Border Structuring

Foreign Investment in India (FDI)

Overseas Investment (ODI)

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