A Germany-based NRI or OCI holder can invest in an Indian company or LLP on a repatriation basis, treated as foreign investment with pricing and reporting rules, or on a non-repatriation basis, treated almost like domestic investment. We review the business, negotiate protections for an investor in Germany and ensure FEMA filings so you can exit cleanly.
- Document route
- German notary, pre-certification, then Indian mission attestation
- Time difference
- India is 3.5 hours (summer) to 4.5 hours (winter) ahead
- Law
- FEMA 1999 and NDI Rules 2019
- Routes
- Repatriable (Schedule 1) or non-repatriable (Schedule 4)
Legal Advisory for NRI Investors from Germany: how it works
We start with your objectives and whether you invest personally or through a German GmbH, which turns the investment into foreign direct investment by that company and brings in German controlled foreign company and reporting rules. Due diligence covers MCA filings, cap table, ESOPs, convertible instruments, charges, litigation and tax compliance, summarised in a short written report.
We negotiate the term sheet, shareholders agreement and articles: information rights, consent over new share issues and debt, a board or observer seat with video meetings, pre-emption and exit rights, and arbitration seated in India or abroad where the parties prefer. Repatriable money comes from Germany by bank transfer or from your NRE account, and the company reports the allotment to the RBI within 30 days. After the investment, we can review annual accounts and board papers each year so that a new funding round does not dilute you unnoticed.
What clients in Germany should know
- A German resident holding a significant stake in a foreign company may have German reporting obligations under the Außensteuergesetz; take German advice.
- Farming, plantations and real estate trading are closed to NRI investment on every route.
- Dividends from India are taxed in India at treaty rates and also declared in Germany with credit.
Step by step from Germany
Video consultation
A call at a time that suits Germany, after we have read your documents.
Documents signed in Germany
German notary, pre-certification, then Indian mission attestation
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Germany where needed.
The full guide
This page covers what changes when you are in Germany. For the law, the documents and the step-by-step procedure, read our main page on Legal Advisory for NRI Investors, or see all services for clients in Germany and the Doing Business in India practice area.
Questions from clients in Germany
Should I invest through my German GmbH?
It depends on control, tax and exit plans. We advise with your German tax adviser.
Can arbitration be seated in Germany?
Yes. Indian law permits foreign-seated arbitration with foreign parties, and India enforces New York Convention awards from Germany.
What does the Indian company file?
Form FC-GPR within 30 days of a repatriable allotment, and an annual return of foreign liabilities and assets.