Foreign Inward Remittance Certificate (FIRC) is a key term for anyone in India receiving payments from abroad,&nbsp; be it exporters shipping goods overseas or freelancers offering services to international clients. 

FIRC full form is Foreign Inward Remittance Certificate, and it serves as an official proof that money has been remitted into India from a foreign sourceskydo.com. In simpler terms, a FIRC is a document issued by an Indian bank to verify and record details of an incoming foreign payment – including the sender, recipient, amount, and purpose of the transactiondbs.com. 

This certificate is crucial in the Indian context as it ensures your foreign earnings are transparent, properly documented, and compliant with regulations. In this guide, we’ll explain what FIRC means, why it’s important, how it works under RBI rules, and how Indian businesses or freelancers can obtain and use FIRC effectively.

FIRC stands for Foreign Inward Remittance Certificate, and as the name suggests, it is a certificate provided by banks in India to verify a foreign currency remittance received in the country. The FIRC contains important information such as the amount received, the foreign sender’s and Indian recipient’s details, and the reason for the payment. Essentially, it’s a tangible proof of an inward remittance – functioning as a testimonial that an individual or business in India has received a payment from abroad.&nbsp;

FIRCs have historically been issued by Authorized Dealer (AD) banks whenever an export payment or any foreign inward payment came in. For example, if an exporter in Mumbai sells goods to a buyer in Europe and receives the payment in USD into her Indian bank account, the bank would issue a FIRC confirming that the foreign payment was received. This document legitimizes the transaction and is often required by various authorities for reference. Only banks licensed as Authorised Dealer Category I by the Reserve Bank of India (RBI) can issue FIRCs, since they are the ones permitted to handle foreign exchange transactions in India.&nbsp;

It’s important to note that “FIRC” is sometimes used informally to refer to similar documents like Foreign Inward Remittance Advice (FIRA) or Foreign Inward Remittance Statement (FIRS). We will discuss these terms later, but broadly speaking, all of them serve a similar purpose: proving that a foreign remittance was received. In summary, a FIRC (Foreign Inward Remittance Certificate) is the official proof of foreign money coming into India, making it an indispensable document for cross-border payments.

Whether you are an Indian exporter, a service provider, or a freelancer, obtaining a FIRC (or its equivalent advice) for your foreign earnings is very important. Here are the key reasons why FIRCs matter:

In summary, the FIRC is more than just a piece of paper – it is essential for compliance, for availing financial benefits, and for maintaining clean financial records of foreign income.&nbsp;Especially in India’s tightly regulated foreign exchange environment, this certificate (or its modern digital equivalent) becomes a cornerstone for anyone dealing with international payments.

FIRC in India: RBI Guidelines and the Switch to FIRA

It’s important to understand how FIRCs are handled in India today, because there have been regulatory changes in the past decade. Historically, banks issued a physical FIRC on security paper for every foreign inward remittance received against exports. However, since 2016, the RBI changed the process for most cases. Let’s break down what that means:

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>

Two acronyms often discussed together are FIRC and BRC. They are related but not the same thing. We’ve explained FIRC (proof of receiving foreign payment). BRC stands for Bank Realisation Certificate. Here’s how they differ and how they work together, especially for exporters:

In summary, BRC is the second step in the documentation chain for exports: first get your FIRC/FIRA (proof of payment), then that leads to a BRC (proof that payment matches an export transaction). Both are important for exporters, but they serve different (complementary) purposes.&nbsp; This decison tree will help you decide if and when will you need FIRC/BRC

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: 

How to Obtain a FIRC (Procedure to Get the Certificate)

Obtaining a FIRC or the equivalent remittance certificate is not an automatic process in many banks – often, you need to request it. Here’s a step-by-step on how Indian businesses or freelancers can get their FIRC/FIRA from the bank:

<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. 

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.

What is FIRC? Learn the full form, meaning, and how Indian exporters & freelancers can get FIRC or FIRA to claim tax benefits and stay RBI-compliant.

FIRC Full Form, Meaning & Guide for Exporters

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

Imagine you’ve just landed a big overseas software contract,&nbsp; exciting, right? Now, whether you’re an individual developer or run a full IT agency, the SOFTEX form is something you might need to deal with. 

Softex actually stands for “Software Export Declaration”.&nbsp; It’s an RBI-regulated document that tracks when Indian businesses export software or IT-enabled services. In simple terms, the Softex form is like a digital “shipping bill” for software exports. The RBI uses it to ensure that your foreign income is legitimate and is eventually brought back to India (typically within 270 days).

The Softex form acts as a declaration of:

Once filed, the Softex form is certified by STPI or SEZ authorities and then submitted to your Authorized Dealer (AD) bank, completing the export reporting process under RBI guidelines.

Softex filing is a regulatory requirement set by the Reserve Bank of India (RBI) to track and certify the export of software and IT-enabled services (ITeS) from India. This obligation applies not only to large IT companies but also to individual freelancers and small businesses.

Practical scenario where Softex will be required:&nbsp;

A SaaS (Software as a Service) company based in India, registered under Special Economic Zone (SEZ), sells subscriptions on a recurring basis to international clients. The software is delivered purely online via cloud hosting, and customers access the platform through their web browser or a mobile app. Payments from clients arrive in USD via Stripe, PayPal, or direct wire transfer to the company's Indian bank account. In this case, the company will have to file a SOFTEX form, as it is registered under SEZ, and the software service is likely not covered under P0802.

Some transactions and service types are exempt from Softex filing:

It might feel like extra paperwork, but filing Softex pays off in a few big ways:

Step 1: Generate Softex Number from RBI

Before you can file any Softex form, you need to obtain a Softex number from the Reserve Bank of India. Visit the <a href="https://rbi.org.in/scripts/EDF_UserDetails.aspx">RBI website</a> and generate either single or bulk Softex numbers. This RBI-generated number will be used to link your export declaration to the banking system&nbsp;

Step 2: Access the STPI Online Portal

Log in to the <a href="https://rbi.org.in/scripts/EDF_UserDetails.aspx">STPI online portal</a> using your registered credentials. If you have not registered your unit, you can follow this detailed <a href="https://stpionline.stpi.in/unit/unitadmin/UserManual/STPI-User-Guide%20for%20New%20Unit%20Registration.pdf">user guide</a> to learn how it’s done. Log in to the portal using your credentials. Click on the Export button on the left side of the dashboard, and then Export Certification (Softex)

Step 3: Fill Out the Online Softex Form

Download the CSV format, which consists of details like contract number, contract date, invoice number, invoice date, currency code, export value and more. We have shared the entire list below:

Fill the CSV file accurately and upload it to the online portal. Once that is done, you will find a View option to upload the following documents:

After you have uploaded all the documents, you will see a Final Submit button. Tap on the button, and you will see another screen open. Here, you must upload the RBI letter related to the Softex numbers, the Internet bill, and the location of the unit from which the goods were exported. Click on the Final Submission button.

Step 6: Digital Signature and Softex PDF document

Once the final submission is done, you will see the application number displayed under the Submit Request screen. Click on the application number, and a PDF document will be generated, which you must download to your computer. On the last page of the downloaded document, you must add your digital signature. Now go back to the screen, and upload this digitally signed PDF. Click on the Final Submit button to complete the process.

The form goes through a maker-checker process where a designated approver from your company digitally signs and submits the application to STPI officials for final certification.

Generate Softex numbers, single or bulk from the <a href="https://www.rbi.org.in/scripts/EDF_UserDetails.aspx">RBI EDF portal</a>. These are mandatory for every Softex submission and must be included in the SEZ system.

Ensure "Unit Maker" and "Unit Approver" roles are set up with access to the Softex module in the SEZ Online system.

The Unit Maker must log in to the <a href="https://sezonline-ndml.co.in/">SEZ Online portal </a>and open the Softex form. Enter export details, invoice period (maximum 90 days), authorized dealer name and code, and select Single or Bulk Softex, depending on the number of buyers. In case you are unaware of the authorized bank information, you can use the search picker denoted by a magnifying glass 🔍

Download Excel templates from the SEZ Online website and fill in the invoice and royalty data as required. You can upload the Excel templates using the system's invoice uploader; the system will confirm once the upload is successful

Step 5: Enter Declaration and Save

In the next step, go to the Declaration tab. Confirm remittance details and declaration of export compliance, and save the form to generate a Request ID

Step 6: Submit for Internal Approval

The Unit Approver must review the saved Softex form. If all details are correct, they confirm and digitally sign using a Digital Signature Certificate (DSC). The form is then submitted to the Development Commissioner’s (DC) office

Step 7: Respond to Queries (if any)

If the DC office raises queries or marks deficiencies, the form is sent back for corrections. Make required changes and resubmit through the same process

Step 8: Get Approval and Certification

Once verified, the DC office certifies the Softex form. You may take a printout (Original, Duplicate, Triplicate) from the portal for your records

Send the certified Softex form to your Authorized Dealer bank. This completes the RBI reporting and foreign remittance compliance process

Failure to file (or late filing) has serious consequences:

Bottom line: Filing Softex on time safeguards your business reputation and keeps your cash flow healthy.

There are a few common misconceptions about Softex filing. We have picked the top three and set the record straight :

“All service exporters need to file it” — This is not true. Only exporters exporting software and IT-enabled services (ITeS) from India, and not covered under purpose code P0802, need to file softex

“My bank takes care of it” — This is partly correct. Banks handle the processing of foreign remittance documents, but do not file the Softex form on your behalf.&nbsp;

“Freelancers need to worry about it” — Not necessarily. Suppose you’re a freelancer or service provider exporting software and IT-enabled services (ITeS) from India and not covered under p0802, you will need to file SOFTEX.&nbsp;

Why Exporters Choose Skydo for Simpler Compliance

Whether or not Softex filing applies to your business, staying audit-ready and compliant is non-negotiable when you’re dealing with international clients.

Skydo takes the paperwork and uncertainty out of your export operations — so you can focus on building your business, not chasing documents.

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Filing income tax returns is usually straightforward for salaried employees – they rely on Form 16 for a neat breakdown of income and TDS, then fill out ITR-1 and they’re done. However, freelancer tax in India can be much more complex. If you’re a developer, designer, consultant, or marketer working independently, the process is not the same as for salaried individuals. Different Income Tax Return (ITR) forms apply, there are Goods and Services Tax (GST) considerations, advance tax rules, and even foreign payments handling (like FIRA documents) that add to the confusion.

But don’t worry – this single guide will help put all that confusion to rest. By the end of this blog, you will understand:

Are Freelancers in India Required to Pay Taxes?

Yes – freelancers in India are subject to income tax just like anyone else. The Income Tax Act doesn’t explicitly define the term “freelancer,” but it treats your freelance earnings as “Profits and Gains from Business or Profession” (PGBP)&nbsp;similar to income from a business or self-employment. 

In other words, if you work independently and earn money by providing services (software development, graphic design, content writing, digital marketing, consulting, etc.), you are considered a self-employed professional – essentially a freelancer – for tax purposes.

If you earn income independently by providing professional or technical services – such as writing code, designing graphics, consulting, writing content, marketing, etc. – and not as a salaried employee of a company, then you’re a freelancer. In tax terms, you’re a self-employed individual carrying on a profession or vocation that requires intellectual or manual skill. Even if the Income Tax Act doesn’t use the word “freelancer,” this is the bucket your income falls into.

You are required to file an income tax return (and pay any tax due) if your total income in a financial year exceeds the basic exemption limit. For the financial year 2024-25 (relevant to AY 2025-26), the limit is ₹2.5 lakh under the old tax regime (for individuals below 60). If you opt for the new tax regime, the basic exemption limit is ₹3 lakh.

This is the minimum threshold under the Income Tax Act for requiring a return. On top of that, the government provides rebates that effectively make income up to ₹5 lakh (old regime) and ₹7 lakh (new regime) tax-free&nbsp;In other words, under the old regime you get a ₹12,500 rebate (Section 87A) and under the new regime a ₹25,000 rebate – meaning you don’t have to pay any tax on income up to ₹5,00,000 and ₹7,00,000 respectively. 

However, you still need to file an ITR if your income exceeds the basic exemption (₹2.5L/₹3L), even if the rebate makes your net tax zero.

Absolutely. A Permanent Account Number (PAN) is mandatory for all taxpayers in India, including freelancers. You will need an active PAN to file your income tax return and comply with all freelancer tax rules in India. If you don’t have one, be sure to apply for a PAN before attempting to file your taxes.

Freelancers in India typically need to choose between two ITR forms, depending on their income and accounting method:

Note: The presumptive scheme we’re referring to is under Section <a href="https://www.skydo.com/blog/44ada-of-income-tax-act">44ADA of the Income Tax Act.</a> It applies to specified professions (including legal, medical, engineering, accountancy, technical consulting, architecture, interior design, etc.), which cover most freelance activities. If you are in one of these professions and your gross receipts are within the limits stated, you can use this simplified scheme.

What Is Presumptive Taxation (Section 44ADA)?

Presumptive taxation under Section 44ADA is a simplified tax scheme designed for professionals like freelancers. If your gross receipts from freelancing do not exceed the threshold (₹50 lakh, or up to ₹75 lakh with minimal cash transactions as noted), you can opt for this scheme to ease your tax filing. Here’s how it works:

For example, if you earned ₹10 lakh from freelancing in the year, under Section 44ADA, you can straightaway treat ₹5 lakh (50% of ₹10L) as your taxable income. You would then calculate your income tax on ₹5 lakh as per the applicable slab rates (old or new regime). You are not required to itemise or prove that you actually spent ₹5 lakh on business expenses – it’s automatically given.

However, presumptive taxation ceases to be available if your freelance receipts exceed ₹75 lakh in the year (or if you’re not in the list of professions allowed). In that case, you must switch to the regular provisions and file ITR-3. Under the regular scheme, you’ll compute your actual profit by deducting actual expenses from your income, maintain proper books, and you may need to get a statutory audit of your accounts (for instance, if your turnover exceeds ₹50 lakh for a profession, as per Section 44AB audit rules).

Note: Section 44ADA’s presumptive scheme is only for certain professions (legal, medical, engineering, architecture, accountancy, technical consultancy, interior decoration, etc.). Other presumptive sections exist for businesses (<a href="https://www.skydo.com/blog/44ad-of-income-tax-act">44AD for small businesses,</a> 44AE for transporters), but those are not applicable to typical freelancers in professional services.

If you opt for presumptive taxation (44ADA), half your income is taxable and the rest is presumed as expenses. If you feel your actual expenses are much higher than 50%, you might be better off not using 44ADA – but then you’ll have more compliance to do (books and audit). Also note that once you opt into presumptive taxation for a year, if you later opt out (say your income grows beyond the limit or you decide to maintain books for a more accurate profit), you might be barred from re-opting the presumptive scheme for the next 5 years. So choose wisely.

How to Calculate Your Freelance Taxable Income

When it comes to calculating how much of your freelance earnings are taxable, you have two options:

Here’s a comparison of the two approaches for the same income, to illustrate the difference:

As you can see, if your actual expenses are relatively low, the presumptive scheme can significantly reduce your taxable income (and paperwork). On the other hand, if your business expenses are high (well above 50% of income), you might save more tax by claiming actual expenses – but you’ll need diligent record-keeping and possibly an audit. Assess your situation to decide which route is more beneficial.

Advance Tax for Freelancers: Do You Need to Pay?

Advance tax means paying your income tax in instalments throughout the year instead of waiting until the end. The idea is to help the government get a steady revenue stream and to help taxpayers avoid a huge lump-sum payment at filing time.

Do freelancers have to pay advance tax? Yes, if your total tax liability for the year is expected to exceed ₹10,000, you are required to pay advance tax. This rule applies equally to salaried folks, freelancers, self-employed professionals, and business owners. If you’re a freelancer making a decent income, you’ll likely cross this ₹10k tax threshold and need to budget for advance tax. For example, if after calculating your taxable income you find you owe, say, ₹50,000 in income tax for the year, you shouldn’t wait until filing time to pay it – you need to pay it in instalments as the year progresses.

Special case – Presumptive Taxpayers: If you are using the presumptive scheme (44ADA), the tax laws let you pay your entire year’s tax in one go by 15th March of the financial year (instead of quarterly instalments). This is a big relief for freelancers on presumptive taxation – you can just estimate your total tax for the year and pay 100% of it by March 15, and you’re done with advance tax(Of course, you could also choose to pay in instalments earlier if you want, but the point is there’s no interest penalty as long as it’s all paid by 15th March.)

For freelancers not under presumptive scheme, advance tax is paid in four scheduled instalments during the year, as shown below:

Who needs to adhere to these? All taxpayers with a &gt;₹10,000 tax liability (except those on presumptive scheme who choose to pay all by March 15) should pay according to the above schedule. Salaried individuals often don’t worry about this because their employers deduct TDS evenly through the year. But as a freelancer, it’s on you to calculate and pay advance tax. Missing these deadlines can result in interest charges (discussed next).

What If You Miss the Advance Tax Deadlines?

If you forget or fail to pay the required advance tax by the stipulated dates (or underpay the instalments), the Income Tax Department can levy interest penalties under Sections 234B and 234C of the Income Tax Act:

These interest charges are in addition to your tax – basically a cost of not paying on time. So it’s in your best interest to stay on top of advance tax if it applies to you.

How to File Income Tax Return (ITR) as a Freelancer

Filing your ITR as a freelancer may seem daunting, but it’s quite manageable if you prepare well. Here’s a step-by-step guide to walk you through the process:

Being smart about taxes can help you hold on to more of your hard-earned money. Here are some tips to legally reduce your tax burden as a freelancer in India:

By utilizing these strategies – either the presumptive scheme or careful tax planning under the old regime – you can minimize your tax outgo and also avoid any last-minute scrambles. Always stay informed about the latest tax provisions, since rules can change with new budgets (for instance, thresholds or deductible limits may be updated).

What Happens If You Don’t File Your Freelancer Taxes?

Failing to file your income tax return as a freelancer can lead to a host of problems – some immediate and some long-term. Here are the key consequences if you miss the tax filing deadline (typically July 31 of the assessment year):

In summary, not filing (or delaying filing) your freelancer taxes can cost you money in penalties, deprive you of tax benefits, invite unwanted scrutiny, and limit your financial opportunities. It’s definitely best to file your returns on time each year, even if you think you don’t owe any tax.

Get the Most Out of Your International Freelance Income with Skydo

Handling taxes is just one part of a freelancer’s juggle. If you work with international clients, you also have to manage cross-border payments – raising invoices, following up on payments, dealing with high bank fees, unfavourable exchange rates, and obtaining the FIRA (Foreign Inward Remittance Advice) from banks for each payment. It’s a lot to handle on top of your core work.

This is where Skydo can be a game-changer. Skydo simplifies your international freelance payments by providing you with virtual foreign account details and a seamless platform. Here’s what Skydo offers to make your life easier:

By streamlining the collection of your international payments, Skydo lets you focus on your work rather than on administrative hassles. Many freelancers lose a chunk of their income in bank fees or waste time with paperwork – you don’t have to be one of them.

This tax season, give Skydo a try and see the difference it makes in managing your freelance income. It’s designed for professionals like you. Sign up for a demo and make your international freelancing smoother and more profitable!

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If you’re billing overseas clients, from a SaaS subscription to a consulting invoice, you want three things: a. the payment to land on time, b. The INR you receive to be predictable, c. and the paperwork to be airtight.

This guide explains how Cashfree handles international payments, what it costs, what documents you get, and when a specialised exporter platform (like Skydo) might fit better.

Cashfree is a Bengaluru-based payments company. Domestically, it’s an RBI-licensed Payment Aggregator. For cross-border, it offers two ways to collect and settle in INR:

Let's take a moment to understand both these methods.&nbsp;

1) Global Collections Account (virtual accounts + local rails)

Best for: Invoices from overseas clients (freelancers, agencies, IT/consulting, SaaS).

In short: Feels like a “local bank account” for your client; you receive INR in India with per-payment FIRA.

2) International Payment Gateway (cards/APMs)

Best for: Online checkout flows (eCommerce, digital goods, subscriptions, SaaS).

In short: Optimised for conversion at checkout with multi-currency presentation; compliance comes as period summaries.

Cashfree International Payments Charges — what to expect

Use the International Gateway when:

Quick comparison: Global Collection Account vs Payment Gateway

A focused alternative for exporters: Skydo

While Cashfree gives Indian businesses multiple ways to collect payments, it’s still built to serve both domestic and international flows.
If you’re an exporter or freelancer who deals primarily in foreign payments, Skydo might be a better fit because it’s designed only for that.

With Skydo, you get global bank accounts in your business’s name across major currencies like USD, EUR, GBP, CAD, and AUD.
Your clients can pay you through their local payment methods, ACH in the US, SEPA in Europe, Faster Payments in the UK, and the funds reach your Indian account at live forex rates with zero markup.

If your client’s in the US, you can even share an InstaLink; they can pay instantly via card (5%) or ACH debit (2%) at midmarket rates without any markup

Every payment comes with an instant FIRA and eBRC (for Amazon sellers).

In short, Skydo takes care of the entire export payment journey,&nbsp; from collection to compliance, without the guesswork or hidden forex costs. So try Skydo today and let us take on of your payment worries

Cashfree International Payments (2025): Global Account, Gateway, Charges & Alternative

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What is Remitly—and how does USD→INR work?

Your <a href="https://www.skydo.com/blog/how-to-receive-money-from-usa-to-india">US-based clients</a> can use Remitly Business to pay you if they are a US-based business. For USD→INR:

Practical tip: For any payout, compare Remitly’s quoted rate with the mid-market rate (the “Google rate”). The difference indicates your effective FX cost for that transfer.

How much does Remitly charge for USD to INR transfers?

Remitly’s fees appear straightforward at first, but the exchange rate significantly impacts the amount you actually receive.

The mid-market rate (the “Google rate”) is the real USD→INR rate without markup.
Remitly’s offered rate is usually slightly lower. For example, if the mid-market rate is ₹85.00 per USD, Remitly might offer ₹84.50—a ₹0.50 difference applied to every dollar sent. On a $5,000 transfer, that’s about ₹2,500 less received.

Remitly’s markup on USD→INR transfers generally falls between 0.4% and 1.4%, depending on the amount, market movement, and transfer speed.

Even if there’s no visible fee, the markup affects your payout.
Compare Remitly’s quoted rate with the mid-market rate before confirming a transfer; the gap between them is your true FX cost.

Real cost breakdown: what you actually receive

To understand how exchange rates affect your payout, here’s an example using approximate numbers for common transfer amounts.

*Based on a mid-market rate of ₹85.01 per USD, assuming an average forex markup of around 0.9%.
Actual markups can vary,&nbsp; and in some cases, may be higher,&nbsp; depending on transfer size, timing, and exchange-rate movement.

Once transfers exceed $1,000, the flat fee becomes less significant. The exchange rate markup continues to determine how much ultimately reaches your account.
On a $2,000 transfer, that difference translates to roughly ₹900 less received. Multiply that across recurring invoices or multiple clients, and the impact compounds quickly.

💡 Note: Exchange rates fluctuate throughout the day. Always check Remitly’s live USD→INR rate against the mid-market rate (the rate visible on Google or XE.com) to know your exact cost before confirming a transfer.

Remitly Business offers two ways to transfer funds, and your choice affects both how quickly you receive the money and the rate you get.

Typically takes up to 5 business days to reach your Indian bank account, but it usually comes with a more favourable exchange rate. This option works well for planned or recurring business payments where timing is flexible.

Deliver funds faster, often within a few hours or by the next business day. The trade-off is that Express transfers may use a slightly lower exchange rate compared to Economy.

In short, Economy favours value; Express favours speed. Choosing between them depends on whether you prioritise timing or maximising your payout.

Remitly Business deposits funds directly into your Indian bank account. They work with all major banks, including HDFC, ICICI, SBI, Axis Bank, and others.

Your client initiates the payment on their end through Remitly Business. Once processed, the money appears in your account - no need to visit a branch or collect cash.

Transfer limits and verification requirements

Remitly Business typically allows transfers of up to about $30,000 per transaction from the US to India. For most freelancers, agencies, and small businesses, this covers regular project or retainer-based payments comfortably.

However, this limit can vary. The actual cap depends on your verification tier, the transfer method used (Economy or Express), and Remitly’s risk assessment of your account. It’s always best to check your current limit in the app before your client initiates a large transfer — limits can change as your usage grows.

When you first set up Remitly Business, you’ll complete a basic verification process using your business and tax details. As your transaction volume or frequency increases, Remitly may request additional verification to comply with regulatory standards.

These checks are part of standard KYC (Know Your Customer) and KYB (Know Your Business) processes required for licensed money-transfer providers. They aren’t unique to Remitly; they apply across the financial industry.

If your expected payment exceeds your transfer limit, you have two options:

Keep in mind that splitting payments can lead to additional FX markups being applied to each transfer. For example, two × $20,000 transfers may cost slightly more overall than a single $40,000 payment on a platform with a higher limit.

💡 Tip: If you frequently receive large invoices or recurring international payments, explore solutions that offer higher limits and transparent flat-fee pricing, so your total costs remain predictable.

Compliance: India-specific rules that matter

When receiving international business payments, compliance is as important as speed or cost. For transfers from the US to India, it’s essential to use the correct Remitly service and maintain proper documentation for Indian regulations.

Consumer Remitly is for personal use only

The standard Remitly app operates under the Reserve Bank of India’s <a href="https://www.skydo.com/blog/what-is-lrs">Liberalised Remittance Scheme (LRS</a>), which is intended solely for personal remittances, for example, family support, gifts, or education expenses.

Using Consumer Remitly to receive business payments or export proceeds isn’t permitted. It falls outside LRS guidelines and also violates Remitly’s own user terms, which prohibit commercial transactions such as freelance payments, service exports, or product sales.

For legitimate business transactions, the sender (your US client) should use Remitly Business. It’s designed for US-registered companies, LLCs, corporations, or sole proprietors paying overseas vendors, contractors, or service providers.
This ensures the payment is correctly classified as a commercial transaction, keeping both sender and recipient compliant with US and Indian regulations.

Even when payments are made via Remitly Business, recipients in India must meet compliance obligations under RBI rules. Each inbound business payment requires:

Remitly doesn’t issue FIRA or eBRC; these must be requested from your Indian bank after each payment. Keeping these documents ensures your foreign income is properly recorded for <a href="https://www.skydo.com/blog/decoding-gst-on-foreign-exchange">GST filings</a>, audits, and export compliance.

Missing or delayed documentation can lead to complications during tax assessments or while claiming export benefits. The responsibility to maintain compliance lies with the recipient, not the payment platform.

💡 Tip: Always verify whether your client is using Remitly Business before accepting payments, and ensure you or your accountant collects FIRA/eBRC promptly after each transfer. Or consider platforms like Skydo, which take care of these compliance docs on your behalf.&nbsp;

A business-grade alternative: Skydo for Indian exporters

If you regularly receive payments from US clients, Skydo is built specifically for Indian businesses, freelancers, agencies, and SaaS exporters who want transparency, faster settlements, and built-in compliance.

Skydo provides the live mid-market exchange rate, the same one you’d see on Google, with zero markup.
Instead of adding hidden margins, it follows a simple flat-fee model:

This makes every transaction predictable; you know your exact cost before receiving the funds.

Skydo gives you two flexible options to receive payments:

Each Skydo payment automatically generates FIRA, and for Amazon Global sellers,&nbsp; eBRC is automated too.&nbsp; You don’t have to contact your bank or follow up manually; all compliance documentation appears in your dashboard and inbox as soon as funds are processed.

Let’s see how Skydo compares on a standard $10,000 invoice.

*Based on a mid-market rate of ₹85.01/USD. Actual results depend on live exchange rates.

Remember, we are assuming a 0.9% markup; the real markup can be more as well. Even with a small markup, the difference adds up. On a $10,000 transfer, you keep about ₹2,000 more with Skydo — plus, your FIRA and eBRC are generated automatically, saving hours of manual follow-up.

💡 Insight: Flat-fee, zero-markup pricing becomes more cost-effective as your transfer amounts increase, especially for recurring invoices or larger export payments.

However, for smaller transfers, Remitly can be a more cost-effective solution, although note that you still have to figure out compliance documents on your own.&nbsp;