Opening of Bank Account outside India of resident firm

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Querist : Anonymous

Querist : Anonymous (Querist)

27 November 2009 How to open a bank account outside india (bank account in any bank in a foreign country)by a partnership firm in India

Sunil

Sunil (Expert)
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27 November 2009 It all depends on the country where you are opening the account. Everyone has their KYC Norms to follow. In USA they allow non-residents to open accounts using the overseas address for convenience of clearing USA payments. However, proper verification is done by them and minimum balances are upward of USD10,000.

Our RBI has delegated the AD with powers to approving your opening of a non-resident account abroad (for the other country you are non-resident)and will remit the money. However, they usually do it with their own branches established in the other country (SBI may help you open it with SBI New York if you need it in USA). You have to keep furnishing the report to them of all your transactions and the amount in excess of minimum balance has to be remitted to India. In USA you have to provide the bank with W8BEN form so that no witholding tax is applicable on the remittances you make to self. In USA mere fact of opening the account does not make your income taxable in USA as per their tax laws and it does not constitute a PE.

Querist : Anonymous

Querist : Anonymous (Querist)

03 December 2009 Dear Sir,

Thank you very much for your reply.

Our bankers told me that the way to open a bank account in a foreign country by a partnership firm registered in India are only the following:-
1. Appointment of a representative in abroad
2. Estabilishing a non-trading office in abroad
3. Estabilishing a branch in abroad

Without going through any one of the mode above, there is no posibiity to open a bank account.

But, I don't want any representative or non-trading office or branch in abroad.

So,I want to know whether it is posibile to open a bank account in a foreign country just like we open bank account in a bank suituated in different cities/states in India.

Please reply.

Thanks,
Anbu

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