The person resident India who has gone outside India for an employee can open Foreign Currency Account outside India. Legal Regulations: The Foreign Exchange Management Act, 1999 (FEMA) deals with cross-border investments, foreign exchange transactions and transactions between residents and non-residents. FEMA extends to the whole of India. It is applicable to all branches, offices, and agencies outside India, which are owned or controlled by a person resident in India, in this respect FEMA can be said to acquire extra-territorial jurisdiction. Who can open Foreign Currency Account to receive a salary? The following can open, hold and maintain a foreign currency account with a bank outside India: \tA citizen of a foreign State but resident in India is an employee of a foreign company. \tA citizen of India is employed by a foreign company outside India. \tIn case of deputation to the office/ branch/ subsidiary/ joint venture/ group company in India of such foreign company The above-stated persons can receive the whole salary payable to him for the services rendered to the office/ branch/ subsidiary/ joint venture/ Group Company in India of such foreign company, through credit to such account, subject to payment of taxes, as applicable in India. \tA citizen of a foreign State resident in India being in employment with a company incorporated in India may open, hold and maintain a foreign currency account with a bank outside India. The whole salary received in India in Indian Rupees can be remitted, to such account, for the services rendered to such an Indian company, subject to payment of taxes, as applicable in India. \tThe term company shall include a ‘Limited Liability Partnership’ as defined under The Limited Liability Partnership Act, 2008. When did a person call as Resident or Non-resident? If an individual who stays in India for more than 182 days during the preceding financial year, he will be treated as a person resident in India. But below are the exception to it: \tIf a person goes/stays outside India for any of the below purposes will be treated as a person resident outside India (non-resident) \ttaking up employment \tcarrying on business or vocation \tAnother purpose for an uncertain period. \tIf a person who is residing abroad comes to/stays in India only for below purpose that will be treated as a person resident in India. \ttaking up employment \tcarrying on business or vocation \tanother purpose for an uncertain period. \tThe PRI is the persons employed for the specific duration which is less than 3 years. The process to open foreign currency accounts: Documents required: \tRequest letter from applicant \tForm A2 \tFEMA Undertaking \tCopy of Passport and Employment Visa (one time) \tDeclaration by the client (Employee/ the company) stating that: \tThe employee is a national of a foreign state, resident in India being an employee of a foreign company \tThe employee is a citizen of India employed by a foreign company outside India, \tThe employee is on deputation to the office/branch/subsidiary/joint venture in India of foreign company \tThe amount bidden for remittance is the salary payable to him for services rendered to the office/branch/subsidiary/joint venture in India of such foreign company. \tThe employee should be regular employment and the said remittance does not exceed net salary (ie. after deduction of contribution to provident funds and taxes). \tThe tax would be paid for the full amount in India. Salary Credited directly to the Foreign Currency Account: In case the salary is directly credited to the foreign national’s account overseas by debit to the company’s current account held with us, the form A2 which is Application cum but Declaration, TT application form, and the declaration has to be signed by the authorized signatories of the company. Remittance of salary: The remittance of such salary amount should be in accordance with the FEMA rule. A person who is resident but not permanently resident in India and who is a \tcitizen of foreign State but other than Pakistan; or \tCitizen of India, who is on deputation to the office or branch of a foreign company or subsidiary or joint venture in India of such foreign company, may make transfer up to his net salary which will be after deduction of taxes, contribution to provident fund and other deductions. For the purpose of this item, a person resident in India on account of his employment or deputation of a specified duration (irrespective of the length thereof) or for a specific job or assignments, the duration of which is up to three years, is a resident but not permanently resident.