ODI (Overseas Direct Investment) Approval and Registration refers to the regulatory process required by Chinese enterprises when making direct investments abroad. It is a mandatory administrative procedure supervised by relevant Chinese authorities, including the National Development and Reform Commission (NDRC), the Ministry of Commerce (MOFCOM), and the State Administration of Foreign Exchange (SAFE), to ensure compliance with national policies on outbound investment.
Under the ODI framework, Chinese companies planning to establish, acquire, or invest in overseas entities must obtain pre-approval or file a registration, depending on the nature, scale, and industry of the investment. Projects involving sensitive countries, regions, or sectors (e.g., military, media, infrastructure) typically require formal approval from the NDRC, while non-sensitive projects below certain thresholds may only need filing.
The Ministry of Commerce oversees the issuance of the Enterprise Overseas Investment Certificate, confirming the legitimacy of the outbound investment. Meanwhile, SAFE regulates foreign exchange remittance related to the investment, requiring enterprises to complete foreign exchange registration before transferring funds abroad.
Key steps in the ODI process include project filing or approval with the NDRC, business registration with MOFCOM, and foreign exchange registration with SAFE or designated banks. The entire process demands comprehensive documentation, such as investment plans, funding sources, corporate structure, and proof of legal establishment.
ODI registration ensures transparency, prevents capital flight, and aligns outbound investments with China’s macroeconomic and foreign policy goals. Successful completion enables enterprises to legally transfer funds overseas and operate foreign subsidiaries.
In recent years, the ODI process has been streamlined to support legitimate and rational overseas investments while tightening scrutiny on high-risk or non-compliant transactions. Companies are advised to conduct due diligence and consult professional advisors to ensure full compliance with evolving regulations.
In summary, ODI overseas investment registration is a critical compliance requirement for Chinese enterprises expanding internationally, ensuring lawful and regulated cross-border capital flows.