Payments relating to the recruitment of foreign technicians, the assistant of Indian technicians on board and the foreign control of raw materials, products and technology themselves are subject to separate RBI procedures and rules regarding bank statement transactions and are not subject to foreign technology cooperation authorization.  Financial cooperation refers to cooperation that concerns only equity. Financial cooperation can be ensured by the conclusion of a joint enterprise agreement with the Indian company. 2. Technical cooperation refers to cooperation when it comes to the transfer of technology by foreign personnel on compensation due. Foreign Colloboration Financial Colloboration 1 Financial Collaboration Techinical Colloboration Financial cooperation refers to the cooperation in which there is participation. Payment terms under foreign technology cooperation, which can be approved by automatic and government authorization, include technical know-how, design and underwriting costs, payment of engineering services and royalties.  com [email protected] com 09769134554 Article on Foreign Cooperation The DIPP is responsible for promoting the acquisition of technological skills in different sectors where such acquisition is necessary to promote economic development. The induction of foreign technologies is facilitated by a liberal system of cooperation abroad, either through foreign technological cooperation or through the Foreign Cooperation Agreement (FTC).
There are two types of foreign collaboration, financial cooperation and technical cooperation. 1. In order to achieve the objective of cooperation, it is therefore necessary that issues such as proper diligence, tax structure, the development of joint enterprise agreements, etc., be taken into account very well. For more information, please contact [email protected] com TAXPERT Professionals Www. taxpertpro. om [email protected] com 09769134554 Article on Annex I of Foreign Cooperation Source: dipp. Nic. IN/ DISCUSSION PAPER SUBJECT: APPROVAL OF FOREIGN/TECHNICAL COLLABORATIONS IN CASE OF EXISTING VENTURES/ TIE-UPS IN INDIA 1. As a result, Category I banks may authorize the drawing of foreign currency by individuals for the payment of royalties and lump sum payments under technical cooperation agreements without the authorization of the Ministry of Trade and Industry, Government of India [w.
f 16 Dec 2009]. Source: rbidocs. Rbi. in/rdocs/content/PDFs/AFE130510RC. Pdf To sum up, the success of any cooperation depends on the synergies that are fuelled by both parties. ) Even in cases where the foreign investor had a joint venture or technology/brand transfer agreement in the same area, A prior government agreement would not be required in the following cases: venture capital fund investments registered with the Security and Exchange Board of India (SEBI) or (ii) where the existing joint venture investments of one of the parties were less than 3% or iii) where the existing venture/collaboration no longer exists or is ill (d) (d) to the extent that it was a joint venture, which should be concluded after the date of the press release, which could include a “conflict of interest” clause to protect the interests of the joint venture partners if one of the partners wishes to create another joint venture or a wholly owned subsidiary , in the same area of economic activity. 2. 7 PRESS NOTE 3 (2005 SERIES) TAXPERT Professionals Www.