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Seeking Advice on Business Account for Freelance Income

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Hey everyone,

I've been working as a freelancer for a while now, and my foreign remittance is currently around 50 LPA. Up until now, I've been receiving all my remittances in my personal savings account with IDFC, where I enjoy a flat 7% return on funds exceeding 5 lakhs.

However, I've recently decided to switch to a partnership firm. The challenge I'm facing is that banks don't allow businesses to open savings accounts; only individuals can do so. I'm looking for the best strategy in this situation.

I plan to regularly invest the funds in mutual funds and some in the stock market. Nevertheless, I'll still miss out on some interest benefits for the funds left in my bank account, as I won't be deploying all of it.

I'm aware of sweep-in fixed deposits, but they tend to offer low rates. So, I'm seeking advice on which bank to go with. Currently, I'm considering RazorpayX, which seems to provide some additional benefits compared to traditional bank accounts.

Any insights or recommendations would be greatly appreciated!

Thanks in advance.
 
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I think it would be nice if someone provides with bank transaction data and then we will have the whole picture of whats better.
I guess bank should be a better solution, but again, dont have the data.

Thanks for sharing the details.
 
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I tried to engage with banks again in understanding how much will one receive in hand while making a swift transfer to thier account with charges+GST+FIRX, but no luck.

Private banks near my area do not have a forex breakup understanding and IOB being sarkari is not interested in discussing.

The way I see it without knowing for sure, direct transfer from client to bank via swift might be the best case as the only fees is $5 for swift + some conversion GST charge + FIRC charge (some bank provide for free, some charge like IOB takes 250 per copy).
Though no proof as yet.
 
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I still think the currency exchange part should be handled by an entity outside India (Indian Banks are not efficient in this)

Then you can just report the INR correctly.

P.S. If anyone is interested in the topic, I have made a group as its not discussed much anywhere else:

www.technofino.in

About International Banking

Anyone dealing with USD/EUR etc. Just send me the screenshot of TransferWise/Payoneer / or any other app/statement showing USD/EUR etc. Can also send (e) FIRC if you have them.
www.technofino.in www.technofino.in
 
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_amit_ said:
I tried to engage with banks again in understanding how much will one receive in hand while making a swift transfer to thier account with charges+GST+FIRX, but no luck.

Private banks near my area do not have a forex breakup understanding and IOB being sarkari is not interested in discussing.

The way I see it without knowing for sure, direct transfer from client to bank via swift might be the best case as the only fees is $5 for swift + some conversion GST charge + FIRC charge (some bank provide for free, some charge like IOB takes 250 per copy).
Though no proof as yet.
Click to expand...


I was later able to get the details about charges from IOB forex team with component wise breakup. The breakup is limited to the transaction and do not include additional service charges like IOB charges 250 INR extra for eFIRC.

_amit_

Post in thread 'Best bank for inward remittance USD'

I sent an email to fedcar@iobnet.co.in requesting charges schedule and gave them a sample figure of $5000.

Amount in USD$5000
Rate83.23
Total in INR416150
For Amount >1L and <10L316150
For Remittance 1000 + (316150/200)2581
FCY conversion GST (18% of 2581)465
GST on remittance (150 +18%)177
Total deduction642
...
  • Like
 
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_amit_ said:
I was later able to get the details about charges from IOB forex team with component wise breakup. The breakup is limited to the transaction and do not include additional service charges like IOB charges 250 INR extra for eFIRC.

_amit_

Post in thread 'Best bank for inward remittance USD'

I sent an email to fedcar@iobnet.co.in requesting charges schedule and gave them a sample figure of $5000.

Amount in USD$5000
Rate83.23
Total in INR416150
For Amount >1L and <10L316150
For Remittance 1000 + (316150/200)2581
FCY conversion GST (18% of 2581)465
GST on remittance (150 +18%)177
Total deduction642
...
  • Like
Click to expand...
IOB is best in the market. No doubt about that.
I always tell the guy I know in IOB, that they should promote this more. They will get much more customers, even HNIs from other banks
 
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_amit_ said:
I tried to engage with banks again in understanding how much will one receive in hand while making a swift transfer to thier account with charges+GST+FIRX, but no luck.

Private banks near my area do not have a forex breakup understanding and IOB being sarkari is not interested in discussing.

The way I see it without knowing for sure, direct transfer from client to bank via swift might be the best case as the only fees is $5 for swift + some conversion GST charge + FIRC charge (some bank provide for free, some charge like IOB takes 250 per copy).
Though no proof as yet.
Click to expand...

I've been using Skydo since the last 5 months now and my experience have been pretty good with them. I get to know the amount I am going to receive upfront with no drama for FIRC and all those things. They provide the best rates and even after deducting their fees (flat $29), it's still a cheaper option for me with all compliances being followed
 
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sidsonn said:
I've been using Skydo since the last 5 months now and my experience have been pretty good with them. I get to know the amount I am going to receive upfront with no drama for FIRC and all those things. They provide the best rates and even after deducting their fees (flat $29), it's still a cheaper option for me with all compliances being followed
Click to expand...
How much is 29$ of the actual transaction amount? Unless it above 5000$ you might just be getting ripped off
 
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Dragon_slayer said:
How much is 29$ of the actual transaction amount? Unless it above 5000$ you might just be getting ripped off
Click to expand...

For me, it varies. Sometimes it's above and sometimes it's below $5k.
But I don't think I'm getting ripped off as all my compliances are sorted, I don't have to go to the bank to open a separate account (HDFC give me a whole list of steps I need to perform for opening a special account for inward remittance) and on top of that, the rates are better here + automated FIRC document.
 
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sidsonn said:
For me, it varies. Sometimes it's above and sometimes it's below $5k.
But I don't think I'm getting ripped off as all my compliances are sorted, I don't have to go to the bank to open a separate account (HDFC give me a whole list of steps I need to perform for opening a special account for inward remittance) and on top of that, the rates are better here + automated FIRC document.
Click to expand...
Yep, thats a nice way to put it.
However, HDFC might just be making it more complicated than what it is because savings account is enough. Maybe bank was doing it for charging you for something non "special".



The average differences that comes between iob and Skydo revolves around ~INR 1500 for varying amounts of exchanges where iob is better for less and skydo for higher in comparison to iob.

iob is good for less amount and skydo for higher amount.

Skydo gets an edge in higher amount because of live forex as difference of even 10p in higher amount will come into play even thought Skydo charges a lot more than Banks.
 
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moneyMaker said:
where dies idfc fits in all this.
Click to expand...
Private banks needs negotiation.

IDFC and HDFC were open to 20p less than IBR rate, which is close to IOB rate as IOB (as per what I have seen lately) revolves around 15p (and might go ~20p or more sometimes).
So one can negotiate with them to give better rates if they want to stick to private banks, but they require negotiation and also one needs to check what they actually gave, which i think is not worth now, as there are good alternatives available in market.


IOB is good anyhow as there is no need to negotiate the price and same with apps.


Also the edge Skydo gets in higher amount can be seen as insignificant, as its ~1500 INR as per me and same for IOB for less amounts.
Skydo charges a lot relatively, and banks only charges GST, and thats how final amount is not that different.
 
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sidsonn said:
Nope, for me it would be FIRC as I am a software engineer providing exports of software as a service. For my particular use-case, a FIRC is what I require.

Source: https://support.tazapay.com/is-fira-different-from-a-foreign-inwards-remittance-certificate-firc
Click to expand...
I am not sure why you shared a link showing the difference between FIRA or FIRC.

As per skydo terms, they only provide FIRA with the payment invoice.
So I was confirming if skydo is also providing you with FIRC or you have asked them for FIRC explicitly.
 
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