How can we ensure compliance with RBI rules for our company?

My co-founder and I formed a Delaware C-Corp in July 2023 using Stripe Atlas. At that time, we were unaware of the ODI regulations. However, they recently posted a blog detailing how using Stripe Atlas for incorporation makes our company non-compliant with RBI regulations. It’s important to note that under the ODI regulations, even paying the fee to Stripe Atlas for incorporating a US company could be considered an overseas direct investment. Your legal adviser can advise you on the proper way to handle such payments in compliance with Indian law. We are seeking to understand if there is anything we can do to ensure compliance with the laws in India and the Reserve Bank of India's rules. If we cannot make it compliant, must we dissolve the company? If so, what steps should we take to dissolve it properly? If we do decide to dissolve, we want to complete the process before the end of the year so that we don’t have to make any tax filings for the year 2025.

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Advocate By LEAD INDIA Answered: 16 Dec 2024

Sir, to ensure compliance with RBI’s ODI regulations, consult legal counsel regarding payments made to Stripe Atlas for incorporating the Delaware C-Corp. If dissolution is required, file a Certificate of Dissolution with Delaware, settle tax obligations, and complete the process before year-end to avoid 2025 tax filings. Engage legal professionals for full regulatory compliance. For further legal assistance contact us on our helpline number.

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