indiabizsolutions - TECHNICAL COLLABORATIONS & ROYALTY

FOREIGN TECHNICAL COLLABORATIONS & ROYALTY

Foreign technology collaborations that are eligible for approval are :

Technical know-how fees.
Payment for designs and drawings.
Payment for engineering services.
Other royalty payments.

The Reserve Bank of India (RBI) accords automatic approval to foreign technology agreements in all industries, within certain prescribed monetary limits. There are separate limits for lumpsum payments, royalty payments, etc.

Our Corporate Advisory Team comprises of professionals who have wide and extensive experience in structuring collaboration and royalty proposals for corporates and in advising and assisting on various matters in connection therewith. Our range of services includes :

Identification of Indian partner for technical collaboration.
Vetting of proposals received from Indian companies / parties for technical collaboration
Drafting of technical collaboration / royalty agreement considering Indian legal, tax and exchange control implications, special and pre-emptive rights
Obtainment of approval (where necessary) and registration from Reserve Bank of India
Advising on withholding tax, transfer pricing regulations in relation to technical know-how fees, royalty, engineering / designs & drawing fees and fees for technical services