Schedule III — Remittance Facilities to Persons Other Than Individuals

# Schedule III (Part 2) — Remittance Facilities to Persons OTHER THAN Individuals

Where the remitter is a company, firm or other non-individual entity, the rules carve out separate purpose-wise limits. The same 'within limits = no approval; above limits = prior RBI approval' principle applies.

## 1. Gifts / Donations

Persons other than individuals may remit by way of donation. Permitted donees:

1. Creation of Chairs in reputed educational institutes;

2. Funds (not being an investment fund) promoted by educational institutes; and

3. Technical institution / body / association in the field of activity of the donor company.

Limit (lower of the two):

> 1% of foreign exchange earnings during the previous 3 financial years OR USD 50,00,000 — whichever is LESS.

Remittance in excess of this limit requires prior RBI approval.

## 2. Commission to Agents Abroad — Sale of Indian Property

Persons other than individuals may remit commission to agents abroad for the sale of residential flats or commercial plots in India.

Limit (higher of the two):

> USD 25,000 OR 5% of the inward remittance — whichever is MORE.

• Within limits → No RBI approval.
• Above limits → Prior RBI approval required.

## 3. Consultancy Services Procured from Outside India

Within the limit → No RBI approval. Above the limit → Prior RBI approval required.

## 4. Reimbursement of Pre-Incorporation Expenses

Remittances by non-individuals for reimbursement of pre-incorporation expenses of an entity in India are allowed.

Approval trigger: If remittance exceeds 5% of investment brought into India OR USD 1,00,000 — whichever is HIGHER — prior RBI approval is required.

## Quick-Recall Table