As an Indian exporter, navigating the complexities of international transactions and compliance can feel like solving a complex puzzle. Today, we'll explore a crucial piece of that puzzle: FIRC

FIRC full form is Foreign Inward Remittance Certificate. It is a document issued by banks as proof of receiving international payments. Over the years, regulations around FIRC have changed significantly, creating confusion and mystery around this important document. Let's clear the air and decode the what, who, and why of FIRC.

What is FIRC? FIRC Full Form, Meaning and More

As we've covered, the full form of FIRC is a Foreign Inward Remittance Certificate and it serves as a proof of foreign transfers. Until 2016, <a href="https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF?no_follow=true/">AD Category I Banks</a> were authorised to issue FIRCs to exporters for receiving international payments. This document was essential for exporters to obtain after each cross-border payment. It served not only as proof of payment receipt but also as a crucial document for claiming export-related incentives, such as tax exemptions on foreign currency payments received in India.

Changing RBI Guidelines: From FIRC to FIRA

FIRA is often still referred to by its old name, FIRC. While both documents serve the same purpose, FIRC is technically only issued for returns on&nbsp;Foreign Direct Investment (FDI )or Foreign Institutional Investment (FII). For all other export collections, FIRA is what you need.

For clarity, we'll use the term FIRC moving forward, but it refers to FIRA throughout.

Anyone receiving foreign payments needs FIRC.&nbsp; Beyond goods and service exporters engaging in international trade, many individuals and entities may receive international payments without realising it.&nbsp;

Overall, the following typically require a FIRC:

Beyond compliance, here’s why FIRC is crucial for exporters:

FIRCs are issued by AD Category I banks. You can contact your bank to get your FIRC after receiving your foreign payment. <a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Alternatively, you can also use platforms like Skydo to get your FIRC instantly after every payment.&nbsp;</a>

This is a sample FIRC document. All crucial remittance details have been masked for security purposes. Now let’s break the content of a FIRC down: 

Receiving your export payment directly through your bank can make obtaining an FIRC a lengthy process. You need to submit a request to the bank, and the bank typically takes 7-15 days to provide the FIRC. You may also need to follow up multiple times, and banks often charge at least INR 400 to issue the FIRC, depending on the institution.

<a href="https://www.skydo.com/blog/how-to-get-firc-certificate-online">Getting a FIRC</a> might sound like a hassle, but with Skydo, it's a breeze. Our fully automated payment system along with built-in partnerships with banks, ensures effortless compliance with RBI guidelines, without needing any manual intervention.

When you receive an export payment through Skydo, we automatically generate the required FIRC for you at no extra cost. Just log into our user-friendly dashboard, and you'll find your FIRC ready to download, complete with all the details you need. 

In conversations around FIRC, there are a few more terms that get frequently mentioned, one of them being eFIRC. So what exactly is <a href="https://www.skydo.com/blog/efirc-firc-brc-essentials-differences">eFIRC?</a>

What is the difference between eBRC and FIRC?

Generally speaking, e-BRC applies mostly to goods and software exporters (under <a href="https://stpi.in/en/home?no_follow=true/">STPI</a>). If you are one of them, you can use this simple decision tree to understand which documents you will need:

Exporting goods and services is considered Zero-Rated Supply, meaning it is subject to 0% GST. However, to claim a GST refund for the input tax credit, exporters must provide the required documents including FIRC. These documents authenticate that the business is claiming a refund because it exported services and couldn't offset its input tax credit as it would in normal domestic business. Without FIRC, claiming a GST refund may not be possible

As we surge in cross-border transactions, ensuring compliance and safeguarding against illicit activities has become a pressing concern. However, at Skydo, we believe your focus should be on advancing your business, not on grappling with compliance challenges.

With Skydo, enjoy seamless international payments, delivered promptly and without any hidden fees. But that's just the beginning! Every time you receive a cross-border payment, an auto-generated FIRC is readily available for you to download, relieving you of compliance burdens so you can devote your energy to what truly matters: driving your business forward.

Dive into the world of FIRC. Explore the full form, importance, and process of obtaining FIRC for your international transactions

Foreign Inward Remittance Certificate (FIRC): Full form, meaning and RBI guidelines

Prashanth

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Prashanth Kumar

If you're a freelancer or a business owner working with international clients, you need an efficient and cost-effective payment processor for your global payments.

While <a href="https://www.paypal.com/in/home">PayPal</a> and <a href="https://stripe.com/in">Stripe</a> are popular payment solutions, they might not be the best fit for every business. Choosing the wrong payment gateway costs you money and your valuable time.

It's essential to be mindful of their drawbacks, including high transaction fees, substantial conversion charges, and regulatory complexities.&nbsp;

Despite their widespread usage, Stripe and PayPal charge high transaction fees, typically ranging from 1% to 4% of the transferred amount, in addition to currency conversion fees based on the payer's country. This complex fee structure poses challenges in accurately estimating overall costs beforehand.

Moreover, for Indian merchants, obtaining <a href="https://www.skydo.com/blog/all-you-need-to-know-about-FIRC-a-complete-guide?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Foreign Inward Remittance Advice (FIRA)</a> documents from Stripe and PayPal can be cumbersome, often taking several days to process. These delays in FIRA document processing lead to transaction delays, causing frustration and potentially hindering business growth.

These collective factors can hinder your profitability and growth. Numerous users of these platforms for digital payments have reported experiencing payment delays.

Here are some excerpts from unsatisfied customers highlighting their experiences.

Skydo: A cost-effective and more efficient alternative

Skydo is a cutting-edge international payment processor designed to streamline international transactions, offering you the best value for your money. It's designed to empower you to expand your business globally stress-free.

Why you should choose Skydo for your international payments

Skydo charges a flat fee of 19 USD for transactions up to 2,000 USD and 29 USD for transactions above 2,000 up to 10,000 USD. That's it – no hidden charges, no percentage games.&nbsp;

Skydo uses real-time exchange rates, offering an entirely transparent pricing model. Unlike Stripe and PayPal, there are no processing fees or FX markups. You receive the maximum value of your online payment and know your cost before transferring funds.

With Skydo, you can <a href="https://www.skydo.com/blog/automated-firc-simplifying-international-payments-compliance?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">download all your FIRCs instantly</a> with just one click. It eliminates delays and ensures compliance.

We believe in complete transparency. With our <a href="https://www.skydo.com/blog/real-time-tracking-of-international-payments?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">real-time tracking feature</a>, you can monitor the status of your funds anytime you want.&nbsp;

You can check, generate, and send invoices, reminders for recurring payments, and up-to-date ledgers.&nbsp;

Using efficient payment solutions like SWIFT and NEFT, Skydo ensures your funds move promptly and securely. You can expect the funds in your virtual bank account to reach your Indian bank account in 18-24 hours.&nbsp;

Our customers endorse us for our transparency.

“Skydo is a fintech platform which brings transparency, speed &amp; efficiency to B2B cross-border payments. We, at Primathon, recently started using it. We made a USD 50k net worth of transactions so far and the experience is just wow 😍 ! From the onboarding process to transactions, everything is as optimised as it could be with added transparency. Folks in the B2B industry should learn from them! Other fellow founders in the services industry, give them a shot!” - Sagar Patidar, Founder &amp; CEO, Primathon on <a href="https://www.linkedin.com/posts/sagarpatidar_fintech-b2bpayments-appreciation-activity-7086641698872672256-Kd6s?utm_source=share&amp;utm_medium=member_desktop">LinkedIn</a>.

Skydo emerges as the best alternative to Stripe and PayPal in cost, transparency, and speed. You also get free <a href="https://www.skydo.com/blog/transforming-your-invoicing-experience-with-skydo?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">online invoicing</a>, instant FIRC and custom payment reminders.

With its transparent pricing structure, Skydo stands out from other payment processing companies. You can <a href="https://www.skydo.com/blog/cut-international-transaction-costs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">unlock substantial savings of up to Rs. 10 lakh per annum</a> with Skydo.

Focus on your business as Skydo takes care of your global payments. It is secure, efficient, affordable, and reliable.

<a href="https://www.skydo.com?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Start your free trial today</a> and grow globally with Skydo!

Disclaimer: Please note that the information provided is accurate as of February 2024.

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If you are familiar with <a href="https://www.skydo.com/blog/differences-between-neft-and-rtgs?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">NEFT and RTGS payments</a>, you must have seen a number attached to every executed transaction under NEFT or RTGS. The number called a UTR number, plays a crucial role in tracking, reconciling, and ensuring the secure movement of funds within the banking system.

A Unique Transaction Reference Number, commonly known as a UTR number, means a 16-digit (for NEFT) and 22-character (for RTGS) unique code assigned to every transaction executed under the National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS) systems.&nbsp;

When you make a digital transaction using NEFT or RTGS, the system automatically assigns a <a href="https://www.nobroker.in/forum/what-is-utr-no-in-rtgs/">UTR number to the completed transaction</a>, which generally looks something like XXXXR786890657897654XX. The main reason behind assigning a UTR number to every transaction is to track the completed transactions easily for future reference.&nbsp;

UTR numbers typically consist of around 22 characters, although the exact length can vary slightly between banks. The structure of a UTR number usually includes alphanumeric characters, combining letters and numbers, including:&nbsp;

To track the UTR number for a transaction, you can do UTR no. tracking by visiting the following places.

In certain situations, UTR numbers might be unavailable or delayed, causing inconvenience for individuals and businesses. One common scenario is during weekends, bank holidays, or after banking hours when transaction processing is suspended until the next working day.

Additionally, the bank executing the payment may see some technical glitches in the NEFT or RTGS system, leading to delays in generating UTR numbers for executed transactions. Furthermore, if the transaction is initiated through third-party payment platforms or non-banking financial institutions, obtaining the UTR number may require additional time due to intermediary processes.

However, if you are unable to find the UTR number, you can always contact the bank for clarity. For a better approach to UTR record-keeping, collecting or downloading the confirmation receipt is essential. These documents typically contain the UTR number along with other transaction details.&nbsp;

For further information and resources regarding NEFT, RTGS, and UTR numbers, you can refer to the <a href="https://www.rbi.org.in/">Reserve Bank of India (RBI) website</a>, which provides comprehensive guidelines and FAQs on electronic fund transfers.&nbsp;

Additionally, you can access your bank's website and read about their specific terms and conditions and redressal processes relevant to NEFT, RTGS, and the resulting UTR number.&nbsp;

Digital transactions such as NEFT and RTGS have become the core of the Indian payment system, especially for entrepreneurs running businesses. With the frequent sending and receiving of payments, it is almost impossible to visit the bank and execute physical transactions.&nbsp;

However, digital transactions under the NEFT and RTGS come with a unique transaction identifier called the UTR number, which can prove helpful in tracking transactions and complying with tax laws. While its availability may be subject to occasional delays or technical constraints, maintaining accurate records of UTR numbers is crucial for individuals and <a href="https://www.skydo.com/blog/top-6-strategies-for-team-alignment-with-business-mission?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">businesses to ensure seamless financial transactions.</a>

Ans: No, the UTR number for <a href="https://www.remitfinder.com/blog/utr-number-everything-you-need-to-know">NEFT UTR is 16 digits</a>, while the UTR number for RTGS is 22 characters. Hence, you can differentiate between the NEFT and RTGS UTR numbers based on their format.&nbsp;

Ans: No, the IFSC code is a unique alphanumeric code assigned to each bank branch participating in India's NEFT and RTGS systems. The UTR number is a unique identifier assigned to individual NEFT and RTGS transactions. It is generated by the bank that processes the transaction and serves as a reference number to track and identify that specific transaction.

Ans: The UTR number is generated by banks when a user transfers money to another <a href="https://www.skydo.com/blog/seamless-payment-experience-with-international-bank-accounts?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">bank account</a>. As part of processing the transaction, the sending bank assigns a unique UTR number to that particular transaction. This UTR number serves as a distinctive identifier for tracking and reconciling the transaction.

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Imagine this: you put a lot of effort, time, and creativity into a project for a client, only to get delayed or ignored when it comes to payment. Freelancers face this common and frustrating problem, especially when working with new or unreliable clients. A staggering<a href="https://www.chaserhq.com/blog/87-of-businesses-paid-late-insights-from-2022-late-payments-report"> 87% of businesses reported being paid late</a> in 2022.&nbsp;

Late payments can hurt your cash flow, motivation, and reputation as a freelancer. Then, how can you deal with this issue and ensure you get paid on time for your work?&nbsp;

This blog post shares some tips and strategies that can help you prevent and handle late payments and some communication strategies to use when dealing with the same.

How To Prevent Late Payments In The First Place?

Here are some tips to help you avoid payment delays and ensure timely payments from your clients.

Despite your best efforts, you may still get late payments often. Follow the steps below to handle the situation professionally and effectively.

Communication Strategies To Use When Dealing With Late Payments

Communication is key to managing and resolving late payment issues. Here are some ways to communicate with your clients effectively and professionally about payments.

If the client doesn’t resolve the late payment issue after following the steps above, you may need to escalate the matter and take more drastic measures. However, before you do so, you should consider the following factors.

Late payments are a common challenge for business owners and freelancers, but you can mitigate them with proper communication and preventive measures. To deal with late payments, start by preventing them with reliable clients and clear contracts.&nbsp;

If payments are late, evaluate the situation, resend invoices, and consider halting work. Finally, maintain open communication, offer incentives, and escalate the issue if necessary.

Q1. How do you tell a client they are late on payment?

Ans. By sending a friendly and polite reminder via email, phone, or text message, you can notify the client that they are late on their payment. Attach the invoice copy for reference, along with the invoice number, amount, and date. You should ask them to acknowledge receipt and inform you of the payment status.

Q2. How do I professionally ask for a late payment?

Ans. You can professionally ask for a late payment by following the communication strategies mentioned above, such as offering incentives, highlighting the due date, sending reminders, approaching the client with empathy and professionalism, and presenting solutions.&nbsp;&nbsp;

Q3. How do I assess the financial reliability of potential clients before engaging in a project?&nbsp;

Ans. To determine their financial stability and creditworthiness, consider using credit check services or financial analysis tools. You can also ask your network for referrals from freelancers or professionals.

Q4. How can technology and software help in managing and tracking payments efficiently?&nbsp;

Ans. Technology and software can enhance your ability to manage and track payments. For example, invoicing software can automate invoicing, send reminders, track payments, and generate reports.&nbsp;

Accounting software can help you manage your income, expenses, and cash flow. Payment gateways can facilitate online payments and provide secure and convenient payment options for your clients. Project management tools can help you track the progress of your projects and the associated payments.

Remember, dealing with late payments is a common challenge for many businesses and freelancers. However, with the right strategies and tools, you can ensure timely payments, maintain healthy client relationships, and improve your financial well-being.

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Imagine landing your first international client for your handmade jewelry, only to have your shipment held up at customs because your IEC (Importer Exporter Code) status shows "pending verification." This scenario plays out frequently for Indian businesses and freelancers who overlook IEC verification (an initiative by the government of India), leading to costly delays, storage charges, and potentially lost clients. The good news? A simple online verification process can help you avoid these headaches and ensure smooth international shipping.&nbsp;

This guide will explain how to check your IEC status online, understand different verification statuses, and prepare your business for hassle-free international trade.

An IEC is your passport for international trade. The Directorate General of Foreign Trade (DGFT) gives this unique 10-digit number to businesses and freelancers who want to trade internationally.

You need to verify your IEC details because:

There are two simple ways to verify your IEC

Step 1: Open your web browser and go to the <a href="https://www.dgft.gov.in/CP/">DGFT</a> website

Step 2: Look for the Login button at the top of the page. Type in your username and password

Step 3: Find and click on Services in the menu. Now look for IEC Management and click on it

Step 4: Here, you need to put in your PAN details and click Submit to see your IEC status or download your IEC certificate

Step 1: Visit the <a href="https://www.icegate.gov.in/">ICEGATE website</a>

Step 2: Find and click User Login under Services.&nbsp;

Step 3: After logging in, look for Check IE Code/BIN Status. Type in your IEC number, complete the captcha, and click IE Code @ ICEGATE to see your status

What are the Different Statuses of IEC Code Verification?

When you check your IEC application status, you'll see one of these status messages:

It means your application is being processed. You need to wait for four days to get the next update. During this time, DGFT officers review your documents and verify your international business details. You can use this waiting period to set up other aspects of your export business, like preparing product catalogs or finalizing your pricing strategy.

It means something wasn't quite right about your application process, and it got rejected (for example, maybe your address proof wasn't clear enough in the application). The next step could be to fix the issues and apply again (no extra fees needed). The good news is that the system will highlight which documents or details need correction, making fixing it easier. Most rejections are resolved within one resubmission, so don't get discouraged if this happens to you.

It means the DGFT has approved your <a href="https://www.skydo.com/blog/iec-code-apply-online">IEC application</a> and sent it to customs. The next step is to wait three days for customs clearance. During this time, your information is being integrated into the customs database, allowing you to ship goods internationally. You can track this status daily on the ICEGATE portal to know exactly when your code becomes active.

Registered by DGFT and Accepted by ICEGATE

It means you're all set to start your import and export operations. This status confirms that DGFT and customs systems recognize your IEC as valid and active. You can now register with shipping companies, apply for export benefits, and start accepting international orders and gigs with confidence that your documentation is complete and valid.

What are the Benefits of IEC Code Verification?

Picture losing a ₹5 lakh international project because your IEC verification wasn't current—it happens more often than you'd think. Understanding the benefits of IEC verification isn't just about following rules; it's about protecting your business and unlocking opportunities that could take your export activities to the next level.

When your IEC is verified, you'll breeze through customs checks without delays. A verified status means your documentation moves much faster, saving you time and money.

A verified IEC builds confidence in your business relationships. International clients can easily confirm that you're a legitimate freelancer. For businesses, shipping companies are more likely to process your orders quickly (keep the shipping bills handy), and banks view you as a credible business partner for financial services.

Regular verification acts as a security measure for your business. You can quickly spot if someone tries to misuse your IEC number for unauthorized trades. This verification status also serves as solid proof of your legitimate trading activities if questions ever arise.

With a verified IEC, you can easily access government export schemes for businesses like yours. Banks are more willing to offer export financing options, and you can confidently register for international trade shows. Plus, claiming benefits like duty drawback becomes much smoother.&nbsp;

What are the Common IEC verification issues and their fixes?&nbsp;

Below are some of the common IEC verification issues and their fixes you must know of:&nbsp;

If the status isn't updating: The system typically needs 24 hours to reflect changes, so patience is key. Early morning hours often work best for checking status updates. If you're still having trouble, try clearing your browser data for a fresh start.

Having login troubles: Most login issues have simple solutions. Check if you typed your username correctly. If you can't get in, use the password reset option. A common oversight is having caps locked on, so watch out for that. Always use the email address you registered with.

Website issues: The best time to check is early morning, between 6 AM and 8 AM, when there's less traffic. If you're using your phone, try switching to a computer instead. Sometimes, the problem is as simple as an unstable internet connection.

What Happens if I Don’t Verify my IEC Code?&nbsp;

Here are the potential consequences of not verifying your IEC Code number:&nbsp;

Receive Export Payments Seamlessly with Skydo&nbsp;

Having a verified IEC is your ticket to smooth international trade. However, it's equally important to manage your global payments efficiently. While traditional payment methods can reduce earnings through high fees and exchange rates, modern solutions like Skydo offer better rates for local receiving accounts.&nbsp;

<a href="https://www.skydo.com/">Get started with Skydo!&nbsp;</a>

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IEC Code verfication 

Form W8 BEN and Form W8 BEN-E are crucial for Indian residents and businesses earning income from U.S. clients. These IRS forms ensure you don’t pay more tax than necessary by letting you claim reduced withholding rates under U.S. tax treaties.

For individuals, <a href="https://www.skydo.com/blog/w8-form-explained-what-indian-residents-must-know">Form W8 BEN</a> is the go-to form, while businesses need Form W8 BEN-E. Though they might seem complicated at first, filling them out is much easier than it looks.

In this article, we’ll walk you through how to complete these forms, highlight common mistakes to avoid, and share tips to simplify the process. If you're a Skydo user, our <a href="https://www.skydo.com/contact-us/support">customer support team</a> is also available to assist you every step of the way.&nbsp;

How to Fill Form W8 BEN as Indian Freelancers?

Form W8 BEN, also known as the "Certificate of Foreign Status," is for Indian individuals earning certain types of income from the U.S., including royalties or passive income.

This form proves you're a foreign person, Indian resident in this instance and ensures your income is taxed correctly. You’ll need to submit it when asked by the payer or withholding agent, basically your client or employer in the US. even if you’re not claiming a reduced tax rate or exemption from the standard 30% withholding.

This is how a Form W8 BEN&nbsp; looks like:

Part I: Identification of Beneficial Owner

This section contains your personal details as an Indian resident earning income from the U.S. Here’s how to complete it:

This is the most critical section. It allows you to claim tax treaty benefits under the <a href="https://www.irs.gov/pub/irs-trty/india.pdf">India-U.S. Tax Convention </a>to reduce or eliminate U.S. withholding tax.

Submit the completed form to your employer or client. If you’re a Skydo user, our <a href="https://www.skydo.com/contact-us/support">customer support team</a> is available to assist you in filling out the form and addressing any concerns you might have.

You can also download <a href="https://www.irs.gov/pub/irs-pdf/fw8ben.pdf">Form W8 BEN right here</a>

Do Indian freelancers need to file a W8 BEN?

Yes, Indian freelancers working with U.S. clients must file Form W8BEN and submit it to their clients. This certifies their status as Indian residents and allows them to claim a 0% tax withholding rate under the India-U.S. Tax Treaty.&nbsp;

How to fill Form W8 BEN E as an Indian Business?&nbsp;

The W8 BENE form serves a similar purpose as the W8 BEN but is specifically designed for Indian businesses and entities rather than individuals. Like individuals, income earned by foreign entities from U.S. sources is also typically subject to a 30% withholding tax. However, by submitting a correctly completed W8 BENE, Indian businesses will qualify for a reduced withholding rate as per the India-US Income tax treaty.&nbsp;

Here’s what the first page of Form W8 BEN E looks like:

Part I: Identification of the Beneficial Owner

This section captures your business details:

Part II: Disregarded Entity or Branch Receiving Payment

This section applies only to Foreign Financial Institutions. For most Indian businesses, you can skip this section.

This is the most critical section of the form, as it deals with claiming tax treaty benefits under the <a href="https://www.irs.gov/pub/irs-trty/india.pdf">India-U.S. Tax Convention.</a>

Most of the remaining sections deal with specific entities like financial institutions, banks, and international organizations. These sections don’t apply to regular Indian businesses providing services to U.S. clients.

Filling out the W8 BEN E can feel intimidating at first, but when you focus only on the sections relevant to your business, it becomes much simpler. Take it step by step, and you’ll be done in no time!

Can I file a W8 BEN and W8 BEN E without a U.S. TIN?

Yes, most Indian freelancers and businesses working with U.S. clients likely won’t have a U.S. TIN (Tax Identification Number). Instead, they can use their PAN or GSTIN as their FTIN (Foreign Tax Identification Number) when filing Form W-8BEN or W-8BEN-E.

How to Avoid Common Mistakes When Filling Out W8 Forms?

Filling out W8 Forms isn't really complicated. However, it is important to avoid some common mistakes to&nbsp;ensure your submission is accurate and hassle-free:

There are five types of W-8 Forms, but most Indian freelancers and businesses will need Form W-8BEN or Form W-8BEN-E.

Choosing the correct form based on your status—individual or entity—is essential to avoid payment delays or incorrect tax withholding. Always double-check before submitting.

It is important to share your Tax Identification Number on the W8 Form. If you don’t have a U.S. TIN, use your PAN or GSTIN as your FTIN. Ensure the number matches your official records.

It is important to quote the correct tax treaty clause to be able to claim reduced tax withholding or exemption.&nbsp;For Indian residents, cite Article 15 (Independent Personal Services) or Article 7 (Business Profits) of the India-U.S. Tax Treaty. Clearly state your claim for a reduced or 0% withholding rate.

Selecting the wrong entity type or failing to declare your financial status can become a problem. Most Indian businesses are Active NFFE (Non-Financial Foreign Entity). Select the correct classification to avoid rejection.

W8 forms should always be submitted to the withholding agent requesting it, not directly to the IRS.

Receiving payments from U.S. clients can be complicated. Banks often charge hidden fees, add forex markups, and require multiple follow-ups to ensure payments arrive on time.

Skydo offers a simpler solution. With a virtual U.S. account, your clients can make local payments, eliminating SWIFT charges. Payments are converted at live exchange rates, ensuring you keep more of what you’ve earned.

If you need help filling out your W-8 form, our support team is here to assist. Once completed, receiving payments from the U.S. becomes straightforward and efficient with Skydo.

Focus on your work, not payment hassles. Let Skydo handle the rest.

How to Fill W-8BEN and W-8BEN-E Forms: A Guide for Indian Freelancers & Businesses