Business outside india

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j.b.sheth

j.b.sheth (Querist)
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01 June 2012 Dear Sir/Medam,

I want to start a business outside india, I want to transfer money for that at regular intervals. What is the procedure for this? Do I need to inform RBI? If yes, than how?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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01 June 2012 You need to visit a Nationalized Bank in your locality or else a Private Bank like ICICI Bank which have separate counters for these kind of NRI Services helpful for people who want to do Inter Country Transactions.
Next ask them to issue a Bank Check in foreign currency example USD. For this you need to have a Savings or Current Account with the Bank,
Following which the equivalent amount of money you would like to transfer would be debited to your Bank Account.

You will need to carry your Bank Account Passbook, Check Book for issue of check to debit the Bank Account, The invoice Note or Purchase Slip where the funds information is listed for payment.

The above listed process would look very simple because you just need to visit the bank and advice them to generate a Check in foreign currency but this won’t work always and there are risks along with delay involved. This is because you need to later send the Check via Post to the receiver and then they have to deposit the same in their Bank Account for clearance which would take more time.

A Indian National who wants to transfer their money to the United States needs to follow certain conditions and cannot remit more than 25,000 USD. If the payments are made from your Savings ie from your Tax Paid Income then you dont have to pay any other taxes on these transactions but if its for Business or a service offered, then the payment made would be charged with an extra 12.24% of Bank Charges or commission.

Services like Western Union, Ikobo, Xoom & MoneyGram won’t be applicable here because they are not allowed legally by the government. Its always adviced to confirm the fees the banks would charge you for the Wire Transfer Payments

Alternative Ways :

Paypal – You can directly send payments through Paypal, but in this case the receiver should also have a Paypal Account and this service even though is almost instant would be charging you high amount of Transaction Fees when you plan to send higher amount of funds.
ICICI Outward Remittance – This is a excellent service from India’s Biggest Private Bank which offers you with Wire Transfer or Foreign Currency Demand Draft where you will be asked with the following details of the Receivers Bank Account – Bank Name, SWIFT Code, Routing Number, Bank Account Number etc. The service attracts a fees like 20$ when you send a amount of around 1000 USD and the correct details can be given by the Bank only.

REGARDS,

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j.b.sheth

j.b.sheth (Querist)
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04 June 2012 Thank you sir,

But I still need to know whether RBI approval is required or not?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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04 June 2012 read link:

https://rbidocs.rbi.org.in/rdocs/notification/PDFs/13253.pdf

https://www.indianground.com/nri/nri-faqs-rbi.aspx

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j.b.sheth

j.b.sheth (Querist)
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05 June 2012 Thank you very much sir.

RAMESH KUMAR VERMA