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Reserve Bank of India sets up forex helpline for start-ups

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Creates an email helpline to give regulatory advice for start-ups at a time when they are increasingly engaged in cross-border transactions
The Reserve Bank of India (RBI) has created an email helpline to provide regulatory advice for start-ups at a time when they are increasingly engaged in cross-border transactions.
“Start-up enterprises usually undertake a wide range of cross-border transactions including those related to investment. Cross-border transactions of resident Indians are subject to the regulatory regime provided by the Foreign Exchange Management Act, 1999,” the RBI said in a circular on Tuesday.
Several Indian start-ups have shifted base to Singapore due to easier regulations on raising funds and taxation. This has led to an increase in cross-border transactions for such companies. All cross-border transactions are subject to FEMA regulations as they involve foreign currency.
Further, according to reports in July, a rule that requires companies to fill out a software-export form for every transaction has made business cumbersome for start-ups that provide software services such as making specific apps.
In its Tuesday circular, the RBI said start-ups should give complete information and list out specific issues on which they need guidance. “This would enable the personnel attending the helpline to offer timely and effective information,” the central bank said.
HT Mint, New Delhi, 23rd Dec. 2015 

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