TaxTMI 
TaxTMI 
TaxTMI 
Opening, Holding and Maintaining a Foreign Currency Account Outside India
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....here the branch is located. (B) Account by a company/ firm in the name of its office/ branch/ representative outside India A firm or a company or a body corporate registered or incorporated in India (hereinafter referred to as 'the Indian entity') may open, hold and maintain in the name of its office (trading or non-trading) or its branch set up outside India or its representative posted outside India, a foreign currency account with a bank outside India by making remittances from India for the purpose of normal business operations of the office/ branch or representative; Provided that - (a) the overseas branch/ office has been set up or representative is posted overseas for conducting normal business activities of the Indian entity; (b) the total remittances made under this sub-Regulation by the Indian entity, to all such accounts in an accounting year shall not exceed (i) 15 per cent of the average annual sales/ income or turnover of the Indian entity during the last two financial years or up to 25 per cent of the net worth, whichever is higher, where the remittances are made to meet initial expenses of the branch or office or representative; and (ii) 10 per cent of su....
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....lied with. 7[(CA). A person resident in India, being an exporter, may open, hold and maintain a Foreign Currency Account with a bank outside India, for realisation of full export value and advance remittance received by the exporter towards export of goods or services. Funds in this account may be utilised by the exporter for paying for its imports into India or repatriated into India within a period not exceeding the end of (a) three months in case of accounts maintained with banks in an International Financial Services Centre; or (b) next month for all other jurisdictions; from the date of receipt of the funds after adjusting for forward commitments, provided that the realisation and repatriation requirements as specified in the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015, as amended from time to time, are also met.] (D) For making Overseas Direct Investment An Indian party may open, hold and maintain Foreign Currency Account abroad for the purpose of making overseas direct investments subject to the following terms and conditions: (a) The Indian party is eligible for making overseas direct investment in terms of Foreign Exchange Managem....
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....Other Cases 4[(1) Subject to compliance with the conditions in regard to raising of External Commercial Borrowings (ECB) or raising of resources through American Depository Receipts (ADRs) or Global Depository Receipts (GDRs) or through direct listing of equity shares of companies incorporated in India on International Exchanges, the funds so raised may, pending their utilisation or repatriation to India, be held in foreign currency accounts with a bank outside India.] (2) A shipping or airline company incorporated in India may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of undertaking transactions in the ordinary course of its business. 2[(3) Insurance/reinsurance companies registered with Insurance Regulatory and Development Authority of India (IRDA) to carry out insurance/reinsurance business may open, hold and maintain a Foreign Currency Account with a bank outside India for the purpose of meeting the expenditure incidental to the insurance/reinsurance business carried on by them and for that purpose, credit to such account the insurance/reinsurance premia received by them outside India.] (4) Resident individuals may o....
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....s, to such account, for the services rendered to such an Indian company, subject to payment of taxes, as applicable in India. Explanation:- For the purpose of this sub regulation, the expression 'company' shall include a 'Limited Liability Partnership' as defined under The Limited Liability Partnership Act, 2008. 8[Explanation:- For the purpose of regulation 5, the foreign currency accounts permitted to be opened 'outside India/abroad' can also be opened in International Financial Services Centre.] ***************** NOTES:- 1. Renumbered as vide Notification No. 10(R)/(1)/2016-RB - Dated 01-06-2016, w.e.f. 01-06-2016 before it was read as, "(E)" 2. Substituted vide Notification No. 10(R)/(1)/2016-RB - Dated 01-06-2016, w.e.f. 01-06-2016 before it was read as, "(3) Life Insurance Corporation of India or General Insurance Corporation of India and its subsidiaries may open, hold and maintain with a bank outside India, a Foreign Currency Account for the purpose of meeting the expenditure incidental to the insurance business carried on by them and for that purpose, credit to such account the insurance premia received by them outside India." 3.....