RBI clarifications for start-ups- (Reserve Bank of India) (11 Feb 2016)
The Reserve Bank of India has issued clarifications relating to acceptance of payments and issue of shares by start-ups. The Bank reiterates, variously, a start-up in India with an overseas subsidiary is permitted to open foreign currency account abroad to pool foreign exchange earnings out of the exports/sales made by the start-up; it is also permitted to avail facilities for realising receivables of overseas subsidiary or making the above repatriation through Online Payment Gateway Service Providers for a value not exceeding US$10,000.
Relevant : Clarifications relating to Issue of Shares MANU/APDR/0013/2016
Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Fourth Amendment) Regulations, 2015 MANU/RFEM/0010/2015
Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 MANU/RFEM/0006/2016
Tags : START-UP PAYMENTS SHARES CLARIFICATIONS