TYPES OF TRANSACTIONS

PLAN – A
LEGAL TRANSACTION

 Money has to be transferred from a current account (Philippines) to a current in India.

Advantages – All the capital money will be transferred through RBI guideline values. So will be
having clear transaction history of source fund for the Business.

Disadvantages – We need to give a large amount as percentage to the GOVT as service charge (33%
- 40% approx.) Apart from this there will be an undercut given to the Bank officials. We mean the
money has to get deposited in the Indian current account for that we have to bribe the manager.
For that we have to register the new firm in our name You, Muthu & Myself.

Duration:- for entire operation will be minimum of 4 to 6 months.

If we go for Plan A there will be loss of time & money.

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PLAN – B
TRADING ACCOUNT TRANSACTION

 The transaction will be done through a Trading account which is in Hong Kong.

Advantages – In this process the service charges percentage will be lesser than Plan A that is 15%.
The person who is involved in this plan is reliable and personally well-known person.

Disadvantages – The transferred money will reach us in liquid cash. Expenditure of the liquid cash
can’t be downed in a single flow. It will take its own time. (As Partners we have a suggestion to be
discussed in this. The Capital amount can be broken into 2 parts, one can be routed through this
trading account and remaining half can be executed via Plan A)

Duration:- for entire operation will be 1 or 2 weeks.

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PLAN – C
LIQUID CASH TRANSACTION

 The whole sum of money has to be given to a concern person in overseas (Philippine)
meantime his fellow will hand over the cash to us in India after the deduction.
Advantages – Whatever the money we are going to hand it over will reach us in short span of time
other than Plan A or Plan B. Service charge will be 12% - 18%.

Important things to be noted is - Whatever the process going to be Plan A or Plan B or Plan C,

How the service charges of transaction will be bared within us??

The sum detected cost of the total value will.be considered as the total cost.

For example on 3 croeres if the service cost of 60nlakshs detecting 60 laksh the capital cost will 2
crore and 40 laksh. This 2 crore and 40 laksh is the capital cost will be utilised for the business cost.