In further relaxations of norms for startups, companies with existing overseas subsidiaries can open foreign currency accounts abroad to credit their earnings (in foreign currency) from exports and sales made by them, the Reserve Bank of India announced. The balances held in such accounts, represent exports from India, and will have to be repatriated to India within the period prescribed for realization of exports, the RBI added. The RBI also said that payments in foreign currency arising out of exports or sales can be credited to Exchange Earners Foreign Currency (EEFC) account maintained in India by the start-up. However, this will be applicable to startup which comply with the rules and regulations laid down by the Government and the DIPP. A startup is a company which is less than five years and its turnover has not exceeded Rs 25 crore for the financial years, according to the government's definition. The DIPP also said that a startup will have to work towards innovation, development, deployment or commercialization of new products, processes or services driven by technology or intellectual property. RBI norms for stake sale in startups by VCs: In February, the RBI announced a a number of regulatory changes to operations of startups in India allowing venture capital firms who have invested in startups an easier exit. To smoothen flow of funds to startups, easier transfer of shares between residents or non-resident investors was announced. In addition, startups can issue FDI instruments such as convertible bonds, which are debt instruments where a holder can convert the bond into shares of a…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...