What Does ODI Investment Mean?

In real life, many enterprises choose to invest in order to achieve better development. Generally, investments are made to obtain better returns. So what does ODI investment mean? To help everyone better understand this knowledge, we have organized relevant content. Let's learn about it together.

What is ODI investment?

ODI investment by enterprises is in contrast to inward investment. The so-called ODI investment by enterprises refers to the economic behavior of enterprises investing in other domestic or foreign units outside their own main business, in cash, tangible assets, intangible assets, or in the form of buying securities such as stocks and bonds, in order to obtain investment returns in the future.

ODI investment is in contrast to inward investment, and ODI investment returns are a component of the total revenue of enterprises. Under the conditions of a market economy, especially the development of horizontal economic alliances, ODI investment has become an important part of the financial activities of enterprises.

What conditions are needed to register an ODI investment company?

The following conditions are required to establish an investment company :

• An investment company uses its own assets to make investments and regards investment as its main business.

• The word "investment" can be used in the name of the company and can be used as a characteristic of the company's industry.

• The investment business of the investment company should be distinguished from the business it directly operates.

• For domestically established investment companies, the ODI investment field can describe the investment scope in general terms.

What conditions must be met for ODI investment?

According to the interim provisions, three conditions must be met to make ODI investment.

• The registered capital has been fully paid up

• There is no illegal business activity

• Profits have been realized

However, according to the opinions of the Industrial and Commercial Bureau, the industrial and commercial registration authorities no longer examine investment qualification certificates, that is, the industrial and commercial authorities no longer examine the above three conditions.

However, due to the opinion of the Industrial and Commercial Bureau, it cannot regulate the behavior of foreign investment committees. As a result, a problem is that for restricted industries that need to be approved by the foreign investment committee, the foreign investment committee still conducts an examination of the above three conditions, while for non-restricted industries, because they do not need to be approved by the foreign investment committee, they can directly conduct industrial and commercial registration without examination.

Above is a detailed introduction of relevant knowledge about what ODI investment means. ODI investment is in contrast to inward investment, and ODI investment returns are a component of the total revenue of enterprises.