I’m a NRI and staying in UK for last 2 years. Recently I got into a deal with two UK IT companies who agreed to pay me 2000 GBP(Pound) each or say 4000GBP per month as commission. I want the money in india in terms of INR, which the company agreed. The companies have asked for Invoice, can I send them an invoice as a freelancer? Now, do i need to set up a company of my own in india to get this payment or Can i simply ask them to transfer the money into my the NRI account?
Asked 3 years ago in Business Law from United Kingdom
1) If you are an NRI (Non Residential Indian), you are only liable to pay taxes for the income that is earned in India. Your earnings while abroad are completely tax free considering that you do maintain the non-resident status
2) it is not necessary for you to set company in india
3) you can a sk companies to transfer funds to your NRI account
3) you can send them invoice as freelancer
1. How are you staying in UK since last 2 years?
2. Are you staying there of your own arrangement or posted there being employed with an Indian Company?
3. However, to make things simple, you can work with them as a free lancer/individual and send your Invoice accordingly,
4. Your commission can be sent to your NRI account maintained in India which will be free from I.Tax.
Ni, need of setting up of an start up business firm. You can get the emoluments as commission in INR and deposited in your Indian bank a/c which would however be under the tax regime of this country.
As long as you have an account in India that money can be transferred to that account. However such earning should be subject to the taxes of UK. You may make an invoice as a freelancer as long as you are not under any other contractual agreement to not freelance.
The remuneration you are likely to receive is for the services you have rendered or a commission for utilising your services on that basis. Therefore it is not mandatory that you have to own a company or a firm to render your services or to get paid through a firm or company. You can ask the principal to make credit to your bank account directly as per the terms and instructions you have issued. It is legally valid.
1. You are free to create an invoice and send it to them. There is no law prevailing in India which commands that you need to set up a company to get the payment in Indian currency.
2. You can also ask them to transfer the money to your NRI account.
1. You may issue an invoice as a freelancer.
2. You may send the money to India in your account (NRI Account) which can be withdrawn in INR.
3. You need not to open a company in India for accomplishment of this objective.
4. Yes, you can just ask the said UK IT companies to transfer the money to your NRI Account.
Advocate, New Delhi
1. NRI has special advantage in terms of transfer of money.
2. This commission is your income accrued out of the country so you have right to deposit directly in NRI account. you'll get tax relief.
3. If you want to invest it in any company i.e. your own company then it shall be called FDI and it's income is taxable.
4. You can get benefit of P-Notes but it is limited.
5. if you want to earn money and save tax then transfer into NRI account otherwise invest it into any manner.
1. Get your company registered in Uk and open its subsidiary company or branch office in India but you need to prove profit.
2. Open a project office and heir Indian professionals. You no need to prove profit but only require RBI approval. It is beneficial because all the money invested in project will not include in taxable income for 5 years.