Transfer of Money from subsidery to Head office out of india
jayesh
(Querist) 21 August 2009
This query is : Resolved
My Client is private limited company incorporate in india. The head office of the company is siutated out of india. There are suplus funds in India. I want to know whether surplus funds can be transferred to head office outside india and what is a procedure
A V Vishal
(Expert) 21 August 2009
Which of your Query is right?, Is your client a Subsidary of a Foreign Holding(as per the heading of the query) or does the Indian Company has an establishment outside India(what is described as Head Office in the body of your query)for which it wants to transfer the funds. Secondly what is the purpose of transferring the funds out of India, simply because it has surplus it cannot transfer the funds rather why cannot it hold here. The client will have to answer these question to RBI without which it will not be permitted to transfer huge amounts outside India.
Manish Singh
(Expert) 27 August 2009
Dear Mr. Jayesh,
remittance upto usd 2 mn is allowed for current account transaction and in your case the company can remit the said amount being dividend (subject to some other conditions precedent) after deducting taxes and all that from that surplus to the forign couterpart through some authorised dealer bank. the bank itself shall intimate the RBI within 30 days of such outward remittance. if the remittance amount is more tahn that, you need to take permission from the RBI.
