What’s a FIRC/FIRS , and why do you should have it?
The FIRC (Foreign Inward Remittance Certificate) is an essential document that acts as proof that you’ve received money from a foreign country. Numerous authorities in India accept this as evidence, and you could need it in certain situations.
The FIRS document is issued on the letterhead of the bank that includes the details of the inward remittance made through the bank.
The certification can be obtained by any individual or company: whether it’s a private limited firm, partnership firm, sole proprietorship business, or any other.
This is a crucial reference for anyone who is an Indian working in foreign currencies. If you’re one of those who earn foreign currency, take the time to read this guide and pass it on to others who earn money from countries outside of India.
NOTE: The article requires some revisions and advice from professionals. This article is guideline only and talk about this with your certified accountant when you require. There are some technical errors in this post, as I do not have a lot of experience with the subject. When I know more about this, I’ll make changes to this reference material.
What are the reasons you should have FIRC/FIRS?
The document FIRC/FIRS contains all crucial details regarding the inward transfer including:
- Sender details
- The amount on foreign currency
- Convert amount to INR
- UTR number
- Account number
- Date
Since foreign inward remittances can be often used for money laundering and money laundering, this document will be useful in the event that the account you are using or your transaction should be classified as suspect. These kinds of incidents are not uncommon which is why having a FIR/FIRC could help. If you’re one who receives funds from countries outside of the United States regularly it is recommended that obtaining a FIRC/FIRS be a part of your financial process.
If you’re thinking of what you can do to get the FIRC/FIRS certification We will explore this in the coming section. But first we will discuss that if you are a freelancer blogger, digital marketer , or any other person who falls into similar categories, what kind of document do you need to get.
- The FIRC is issued to facilitate outward remittances for Foreign Direct Investment or Foreign Institutional Investment (FDI/FII).
- In the case of exports of products and services, FIRS/FIRCis created by the recipient banks or payment portals like Paypal, Payoneer. Most of the cases bloggers, freelancers, and e-commerce sellers fall under the same category.
How to Obtain FIRC/FIRS:
The process of obtaining FIRC/FIRS isn’t nearly as difficult as it was in the past and in this article I’ll highlight some of the most effective ways to get the FIRC/FIRS.
Received FIRCs from Payoneer:
Payoneer is among the most preferred methods for receiving international payments because of its low cost. Users of Payoneer can access the FIRC document by following the steps:
1. Login to Payoneer.
2. Click on the notification icon and then look for an FIRC message. FIRC message.
3. Click on the message to open it and then click on the embedded link to download the document.
To view the document, you’ll require the password. To get the password, send an email to customer service.
Payoneer provides FIRC at no cost.
Additional information from Payoneer
- Automated Digital FIRC Service by Payoneer (Free)
Receiving FIRCs from PayPal:
PayPal is among the most popular and well-known payment systems in India for foreign transactions. However the process of getting FIRC through PayPal is exhausting.
A few nitty-gritty details on PayPal FIRC request:
- PayPal accepts payments via Citibank as well. FIRC is issued through Citibank.
- This FIRC will be mailed to your bank account. You must notify your relationship manager, or your local branch about the same.
- It may take 7-10 days for FIRCs to be issued.
- You will need to make an electronic request to apply for FIRC issuing (Process as outlined below)
- For requests that exceed 20 transactions, FIRC/Advice will be charged by transaction: 100 INR plus 18 percent GST
- For requests that exceed twenty transactions Citibank can issue an bulk FIRC/Advice that will be priced at 22,000 INR plus 18 percent
The entire process and steps to PayPal FIR here.
NOTE: Considering Payoneer offers the issuance of FIRC for free and PayPal costs a significant amount of 100 INR plus 18 percent GST for each certificate, you should think about making use of Payoneer to pay whenever it is possible. In my investigation of Payoneer against PayPal, I have observed that Payoneer can help you save significant amounts of money over the long time.
Receiving the FIRS certification From Bank:
If the sender has wired transferred funds directly to your bank account You can reach out to the relationship manager of your your local bank account to request the issuance of the FIRS. ICICI bank recently introduced the possibility of downloading directly the i-FIRS application from their corporate web banking portal. It’s very easy to use and comes at no cost.
Here are some pages on the most well-known banks of India:
Note: I couldn’t get more information from other banks regarding the issue of payment advice or FIRS.
Be aware that this article could be faulty due to my being not an expert in this field. But, having knowledge of the FIRC/FIRS, and collecting it can help in the future.
It is also important to know about the SEIS scheme which can allow you to earn an additional 3 to 5 percent.
