Hi Folks
When we were looking for an appropriate theme for the banner 4 dates popped up – World Cancer Day on 4th Feb, Abraham Lincoln’s birth anniversary on 12th, Valentine’s Day on 14th and Youtube founding day on 15th Feb. Each date signifies entirely different events but all converge on hope, courage, life and creation. What Lincoln said centuries ago about predicting future by creating it is what exactly Youtube creators did in 2005.Today not only is Youtube accessed and used by millions but it has also created a new career option-Youtuber.
Just read this interesting story of Abraham Lincoln on his take on what one does and how one does it – you can pick up any skill today and make the best out of it. There is really no dearth of skill sets and opportunities. Plus you need not be ashamed of it.
“When Abraham Lincoln became the president of America, his father was a shoemaker. And, naturally, egoistic people were very much offended that a shoemaker’s son should become the president. They were aristocrats, who thought it was their birthright to be in the highest government post. A shoemaker’s son? On the first day, as Abraham Lincoln entered to give his inaugural address, just in the middle, one man stood up. He was a very rich aristocrat. He said, “Mr. Lincoln, you should not forget that your father used to make shoes for my family.” And the whole Senate laughed; they thought that they had made a fool of Abraham Lincoln.
But Lincoln – and that type of person is made of a totally different mettle – looked at the man and said, “Sir, I know that my father used to make shoes in your house for your family, and there will be many others here… because the way he made shoes, nobody else can. He was a creator. His shoes were not just shoes, he poured his whole soul in it. I want to ask you, have you any complaint? Because I know how to make shoes myself; if you have any complaint I can make another pair of shoes. But as far as I know, nobody has ever complained about my father’s shoes. He was a genius, a creator, and I am proud of my father!”
The whole Senate was struck dumb. They could not understand what kind of man Abraham Lincoln was. He had made shoe-making an art, a creativity. And he was proud because his father did the job so well that not even a single complaint had ever been heard. And even though he was the president of America, he was ready to make another pair if there was any complaint.”
It does not matter what you do. What matters is how you do it – of your own accord, with your own vision, with your own love. Then whatever you touch becomes gold.
As I leave you with these thoughts to reflect, do scroll down to update yourself on the important Start up related RBI notifications involving FDI. Should you wish to refer to any of our older issues of LexSpeak, do visit our Resource Centre at sharadasc.com.
Warm regards

News Updates

In line with Startup India Action Plan, RBI has issued clarification w.r.t. issue of shares

  • Shares can be issued without receiving cash – by way of sweat equity if the issue is in accordance with SEBI and / or Companies Act 2013 Rules and Regulations.
  • Issue of shares against any payment owed by the company – intellectual property rights, import of goods, payment of dividends, interest payments, consultancy fees etc.
  • The share issue will be allowed if the remittance does not require any prior approval under FEMA.
For ease of doing business, RBI has clarified the acceptance of payment by start-ups on behalf of overseas subsidiaries.
  • A start-up in India with overseas subsidiary can open Foreign Currency Account abroad.
  • Permitted to pool its receivables arising from the transactions with the residents in India as well as the transactions with the non-residents abroad into the said account.
  • Overseas subsidiary can also pool such receivables into the said account.
  • The balances in the Foreign Currency Account should be repatriated to India within 9 months.
  • Upto a limit of USD 10,000 start-up can receive and make payment through Online Payment Gateway Service Providers (OPGSPs).

All of the above is subject to proper agreement between the start-ups, overseas subsidiary and its customers.

With a view to promoting the ease of reporting of transactions related to Foreign Direct Investment (FDI), the RBI has enabled online filing of Advance Remittance Form (ARF), FCGPR and FCTRS on e-Biz platform. Physical filing of these forms have been discontinued from 8th February, 2016. Earlier both physical and online filing was available to the users.

A quick information – FCGPR is for allotment of shares and FCTRS for transfer of shares from resident to non-resident and vice versa.

RBI has issued circular w.r.t. opening and maintenance of Foreign Currency Accounts in and outside India by person resident in India. Such person can open Exchange Earner’s Foreign

Currency (EEFC) Account, Resident Foreign Currency (RFC) Account, Resident Foreign Currency (Domestic) [RFC(D)] Account, Diamond Dollar Account (DDA).

Further RBI has prescribed the list of eligible persons who can open the Foreign Currency Account with an authorised dealer:

  • Indian companies receiving Foreign Direct Investment
  • Indian agents of foreign airline or shipping companies
  • Ship-manning/ crew managing agencies in India
  • A unit in a Special Economic Zone
  • Project offices in India set up by foreign entities
  • An exporter who is exporting services and engineering goods on deferred payment terms or has undertaken a turnkey project or a construction contract abroad
  • Organisers of international seminars, conferences, conventions etc.
Note: The contents of this
Newsletter are only a summary and has not dealt with any issue in detail. Any action
taken or proposed to be taken must be in consultation with professionals and not
merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.

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