There are round 1.5 lakh startups registered with the Division for Promotion of Trade and Inside Commerce (DPIIT).
“The current modification to FEM (Overseas Foreign money Accounts by a Individual Resident in India) Laws is according to the trouble to harmonise the definition of startup as per the newest notification issued by DPIIT,” mentioned Mayank Arora, Regulatory Director, Nangia Andersen India.
The Overseas Trade Administration (Deposit) (Fourth Modification) Laws, 2024, issued by the RBI, launched a brand new provision which permits authorised sellers in India to allow non-resident people to open and keep interest-bearing accounts in Indian Rupees or international forex. Additionally, Funds 2024-25 had introduced harmonising the definition of ‘startup’ for ease of doing enterprise.
Arora mentioned that this might take away ambiguity amongst AD banks whereas permitting opening of international forex financial institution accounts of DPIIT recognised startups.