Suggestion for Indian Business Bank Account with non-Indian UBOs?

[OudeWilg90]

I have a small (legitimate) online marketplace-type business, and I want Indian-residents to be able to use it. So I've incorporated an Indian subsidiary thru a local accountant, hired a local part-time director, etc, so that I can use domestic payment processing companies (Razorpay, Paytm, etc). Due to all the capital controls I plan to leave and re-invest the money in India for now.

This has all gone fine, but I'm struggling to get an Indian business bank account opened. I've had my local director apply at a few banks. But as soon as they see the UBOs and 2/3 dirrectors are residents of the Netherlands with EU passports (Polish/French), they seem to freak out. Nobody has denied us an account, but I have 3 applications which have been pending for 4+ months.

I can't use Wise because I need to be able to receive INR pay-ins from the payment processors using local Indian bank account details.

Does anyone have any suggestions regarding some banks that might be less paranoid about EU investment coming in?
Or have a contact that I can pay to assist in taking care of this for me?

 

[daniels27]

@MikeDem may be able to help you.

 

[kalikex]

if you are in europe try sokin this emi provide you INR Account

 

[daniels27]

if you are in europe try sokin this emi provide you INR Account

Yes, but the account is hold in Europe. It won't serve his purpose.
https://sokin.com/business/currencies-currencyaccounts/

He needs an Indian local account. India has very strict capital controls. You cannot open accounts there as foreigners for the general purpose. That's why it is difficult as company to open an account there.

See my post here on personal account:

D

Post in thread 'Where can I get an Indian bank account?'

Sep 22, 2024

What do you need it for? India has very strict capital controls.

As a foreigner, you can open an NRO or SNRR account. But they are only to be used for honest transactions:
https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx

• daniels27

• 

 

[kalikex]

Yes, but the account is hold in Europe. It won't serve his purpose.
https://sokin.com/business/currencies-currencyaccounts/

He needs an Indian local account. India has very strict capital controls. You cannot open accounts there as foreigners for the general purpose. That's why it is difficult as company to open an account there.

See my post here on personal account:

D

Post in thread 'Where can I get an Indian bank account?'

Sep 22, 2024

What do you need it for? India has very strict capital controls.

As a foreigner, you can open an NRO or SNRR account. But they are only to be used for honest transactions:
https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx

• daniels27

• 

It may be possible that you need to talk with Sokin regarding your requirements. Also, India can be a challenging environment for both companies and citizens, both domestic and foreign. However, based on my experience, it can be done through Nostro and Vostro accounts. It will take some time, but if an account needs to be opened, you might want to consider this option: KarbonCard. It may be helpful.

 

[Silverlake]

I believe getting an account in India would be tough and you would require local presence and a local director.

In addition, India also has this extremely confusing system where some INR are ordinary and others are not (I keep forgetting the terminology for this but in essence you got some INR which can be used domestically and others which can be used domestically and internationally, in other words, you have capital constraints).

 

[daniels27]

I believe getting an account in India would be tough and you would require local presence and a local director.

He has that.

In addition, India also has this extremely confusing system where some INR are ordinary and others are not (I keep forgetting the terminology for this but in essence you got some INR which can be used domestically and others which can be used domestically and internationally, in other words, you have capital constraints).

Yes the NRO and the SNRR

D

Post in thread 'Where can I get an Indian bank account?'

Sep 22, 2024

What do you need it for? India has very strict capital controls.

As a foreigner, you can open an NRO or SNRR account. But they are only to be used for honest transactions:
https://www.rbi.org.in/commonperson/english/scripts/FAQs.aspx

• daniels27

• 

 

[Silverlake]

He has hat.

My apologies, I didn't read properly and noticed you had foreign nationals and a local national.

Have you tried removing those foreign nationals as directors and/or shareholders and just keeping the local one? Then apply to some new banks (Don't re-apply to existing). From a compliance perspective, this would makes things a lot simpler.

I also understand you want to keep the funds in India but there are ways for you to get it out. Most of the individuals I know that operate in India have a local company which essentially acts as a payment agent and then send the funds outside of India to another company.

 

[daniels27]

Have you tried removing those foreign nationals as directors and/or shareholders and just keeping the local one? Then apply to some new banks (Don't re-apply to existing). From a compliance perspective, this would makes things a lot simpler.

Yes, that's what I would do. Form the company without foreigners, apply, then add the foreigners. But some banks will notice the change. And then also the UBO form. He only waited 3 months or so. That's less than what a local company in Hong Kong waits. I would just give it some more time.