P. (DIR Series) Circular No. 77 [(2)/10(R)] - Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015
- As a part of Government’s initiative for startups, it has been decided that Indian startups having overseas subsidiaries may open foreign currency account with a bank outside India for the purpose of crediting to the account the foreign exchange earnings out of exports/ sales made by the said startups. The Balance held in such accounts, to the extent they represent exports from India, shall be repatriated to India as prescribed.
- In addition, payments received in foreign exchange by Indian Startups out of such export/ sales will be permissible credit to the Exchange Earners Foreign Currency Account (EEFC Account) maintained in India by the startup.
- A startup will mean an entity which complies with the conditions laid down in Notification No. GSR 180(E) dated February 17, 2016 issued by Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Government of India. – 23rd June 2016.
- Further any insurance/ reinsurance company registered with the Insurance Regulatory and Development Authority of India (IRDA) may open a foreign currency account with a bank outside India to carry out insurance/ reinsurance business