Registration/approval of representative service agreement

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rajesh (Querist)
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24 September 2015 A foreign company wants to appoint a indian company as a representative for promoting/marketing its products. Does Indian company have to take approval or register the agreement with RBI etc?

Guest

Guest (Expert)

24 September 2015 If there is contract between Indian company and the foreign company for marketing the products containing the compensation for Indian company, then there is no requirement for approval from RBI as this falls under Current Account Transaction u/s 2(j) of FEMA Act.