It is clarified that:
a.
A
start-up in India with an overseas subsidiary is permitted to open foreign
currency account abroad to pool the foreign exchange earnings out of the
exports/sales made by it;
b. The overseas
subsidiary of the start-up is also permitted to pool its receivables arising
from the transactions with the residents in India as well as the transactions
with the non-residents abroad into the said foreign currency account opened
abroad in the name of the start-up;
c.
The
balances in the said foreign currency account should be repatriated to India
within a period as applicable to realisation of export proceeds (currently nine
months);
d.
A
start-up is also permitted to avail of the facility for realising the
receivables of its overseas subsidiary or making the above repatriation through
Online Payment Gateway Service Providers (OPGSPs) for value not exceeding USD
10,000 (US Dollar ten thousand); and
e.
To
facilitate the above arrangement, an appropriate contractual arrangement
between the start-up, its overseas subsidiary and the customers concerned
should be in place.
Based on RBI
Circular dt 11/02/16. Please visit www.rbi.org.in for any further clarification
if required….. Poppy
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