In the recent notification of Reserve Bank of India and to align with the Government of India’s startup initiative, it has been decided that an Indian startup* having an overseas subsidiary, may open a foreign currency account with a bank outside India for the purpose of:
The balances held in such accounts, to the extent they represent exports from India, shall be repatriated to India within the period prescribed for realization of exports, in Foreign Exchange Management (Export of Goods and Services) Regulations, 2015 dated January 12, 2016, as amended from time to time.
Also, such payments received in foreign exchange will be a permissible credit to the Exchange Earners Foreign Currency (EEFC) account maintained in India by the startup. (http://taxguru.in/rbi/foreign-exchange-management-foreign-currency-accounts-by-a-person-resident-in-india-regulations-2015.html)
Earlier to this notification, the facility to open foreign currency account outside India was available to:
* 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
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