{"id":2487,"date":"2026-10-07T17:33:16","date_gmt":"2026-10-07T12:03:16","guid":{"rendered":"https:\/\/blog.remitcircle.com\/?p=2487"},"modified":"2026-10-07T17:38:32","modified_gmt":"2026-10-07T12:08:32","slug":"p0017-sale-of-intangible-assets-by-indian-companies-patents-copyrights-trademarks","status":"publish","type":"post","link":"https:\/\/blog.remitcircle.com\/purpose-codes\/p0017-sale-of-intangible-assets-by-indian-companies-patents-copyrights-trademarks\/","title":{"rendered":"P0017 : Sale of intangible assets by Indian companies (Patents, Copyrights, Trademarks)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2487\" class=\"elementor elementor-2487\">\n\t\t\t\t<div class=\"elementor-element elementor-element-47e67fbd e-flex e-con-boxed e-con e-parent\" data-id=\"47e67fbd\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-bcfd6cd elementor-widget elementor-widget-text-editor\" data-id=\"bcfd6cd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><b>What is Purpose Code P0017?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">P0017 is used when an Indian company or individual permanently sells or assigns ownership of intangible assets &#8211; patents, copyrights, trademarks, trade secrets, or similar intellectual property &#8211; to a foreign buyer, and receives the sale consideration in India. This is a Capital Account transaction because it represents the permanent transfer of an asset, not the ongoing licensing of it.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This distinguishes P0017 from IP licensing income (which would fall under the Intellectual Property group codes P0901\/P0902). The critical distinction is ownership transfer versus usage rights: P0017 is for when you sell the IP outright and it is no longer yours. If you retain ownership and merely license it for use, the recurring royalty income falls elsewhere.<\/span><\/p>\n<p><a href=\"\/category\/purpose-codes\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"page\" data-id=\"351\">See all RBI purpose codes<\/a><\/p>\n<p>\u00a0<\/p>\n<p><!-- \/wp:post-content --><!-- wp:heading {\"className\":\"u005cu005cu005cu0022wp-block-headingu005cu005cu005cu0022\"} --><\/p>\n<blockquote>\n<h2><b>When to Use P0017<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Use P0017 when an Indian entity permanently transfers ownership of intellectual property to a foreign buyer and receives payment. Common scenarios:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">An Indian technology company selling a patent portfolio outright to a foreign corporation<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian software developer assigning copyright ownership of a software product to an overseas buyer<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian brand or startup selling its trademark to a foreign entity as part of an acquisition or brand sale<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian pharmaceutical company divesting a drug patent to a foreign pharma group<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An Indian creator or author permanently assigning copyright of a creative work (music, literature, design) to a foreign publisher or media company<\/span><\/li>\n<\/ul>\n<p><strong style=\"font-size: 16px;\">Quick check: <\/strong><span style=\"font-weight: 400;\">Are you permanently transferring ownership of your IP to the foreign party? Use P0017. If you are retaining ownership and licensing the IP for royalties, use P0902 (licensing of trademarks\/patents) instead.<\/span><\/p>\n<p>\u00a0<\/p>\n<h2><strong><strong><strong>Wrong Code? Use These Instead<\/strong><\/strong><\/strong><\/h2>\n<\/blockquote>\n<p><!-- \/wp:heading --><!-- wp:table --><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>If your money is from\u2026<\/b><\/p>\n<\/td>\n<td>\n<p><b>Correct code to use<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Licensing \/ royalties &#8211; retaining IP ownership, charging for use<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0902<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Franchise services income from abroad<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0901<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Software services \/ consulting income (not IP sale)<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0807<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Sale of a foreign subsidiary or equity stake<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0001 or P0004<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Other capital receipts not elsewhere classified<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0018<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<h2><strong><strong>Documents to Keep Ready<\/strong><\/strong><\/h2>\n<p><!-- \/wp:table --><!-- wp:table --><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Document<\/b><\/p>\n<\/td>\n<td>\n<p><b>Why you need it<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>IP assignment \/ sale agreement<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Primary legal document confirming the permanent transfer of IP ownership to the foreign buyer<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>IP valuation report<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Independent valuation of the patent, copyright, or trademark &#8211; required for pricing and FEMA compliance<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Registration \/ ownership proof of IP<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Patent certificate, copyright registration, or trademark registration confirming Indian ownership<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>RBI \/ FEMA compliance confirmation<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Sale of intangible assets to non-residents is a Capital Account transaction requiring compliance<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>e-FIRA<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Official proof of inward remittance tagged P0017 &#8211; important for tax and accounting records<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Tax clearance \/ CA certificate<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Capital gains tax may apply on IP sale &#8211; CA computation and advance tax payment should be addressed<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<h2><strong>What is an e-FIRA &#8211; and Why Does It Matter?<\/strong><\/h2>\n<p><!-- \/wp:table --><!-- wp:paragraph --><\/p>\n<p>An e-FIRA (Electronic Foreign Inward Remittance Advice) is the official proof that foreign money entered India. It confirms the nature and purpose of the inflow, which matters for tax treatment, FEMA compliance, and audit trails.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Your bank generates it automatically once the funds land. You can usually download it from your internet banking portal or request it at your Forex desk. The e-FIRA will reflect the correct purpose code, which your CA or accounts team will reference during filings.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:quote --><\/p>\n<blockquote>\n<p><!-- wp:paragraph --><\/p>\n<p>\u00a0<strong>Did you know? <\/strong>Some banks take days to issue an e-FIRA. With Remit Circle, you can download yours instantly at no charge the moment your payment is credited. \u2192 Get your free e-FIRA via Remit Circle<\/p>\n<p>\u00a0<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<\/blockquote>\n<p><!-- \/wp:quote --><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2><strong>Receive Inward Remittances Compliantly with Remit Circle<\/strong><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Getting the purpose code right on an inward remittance isn&#8217;t just a formality, a mismatch can cause payment holds, RBI queries, or incorrect tax treatment. Remit Circle is built to handle this for you.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p><strong>Instant e-FIRA &#8211; <\/strong>Download your Foreign Inward Remittance Advice the moment funds are credited. No waiting on the bank, no Forex desk visits. Free.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p><strong>Correct purpose code, every time &#8211; <\/strong>Remit Circle flags the right code for your transaction type before the payment is processed, so there are no mismatch holds at the bank.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p><strong>Multi-currency support &#8211; <\/strong>Receive in USD, EUR, GBP, AUD and more. Funds settle directly into your Indian bank account at competitive rates.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p><strong>Compliance-ready records &#8211; <\/strong>Every transaction comes with a clean audit trail purpose code, amount, date, counterparty so you and your CA are always on the same page.<\/p>\n<p>\u00a0<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:pullquote --><\/p>\n<figure>\n<blockquote>\n<p><strong>Start receiving international payments with Remit Circle<\/strong><\/p>\n<p><cite>Open a free account in minutes. No minimum balance, no hidden fees. Get your e-FIRA instantly on every inward remittance.<br \/><strong>\u00a0<a href=\"https:\/\/remitcircle.com\/authentication\/login\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/remitcircle.com\/authentication\/login\">Open your free Remit Circle account \u2192<\/a><\/strong><\/cite><\/p>\n<\/blockquote>\n<\/figure>\n<p data-interaction-id=\"d64be8d\">\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d8e7e80 e-con e-atomic-element e-flexbox-base e-default-div e-34e9be0 \" data-id=\"d8e7e80\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"d8e7e80\">\n    <div class=\"elementor-element elementor-element-5300da9 e-con e-atomic-element e-flexbox-base e-default-div e-5300da9-bbbee06 \" data-id=\"5300da9\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"5300da9\">\n    <div class=\"elementor-element elementor-element-49dde89 e-con e-atomic-element e-flexbox-base e-default-div e-49dde89-f2d7342 \" data-id=\"49dde89\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"49dde89\">\n    <div class=\"elementor-element elementor-element-44dca1b e-con e-atomic-element e-flexbox-base e-default-div e-44dca1b-f5247e8 \" data-id=\"44dca1b\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"44dca1b\">\n    \t\t\t<h2 data-interaction-id=\"377444f\" class=\"e-377444f-832a370 e-heading-base e-default-h2\"><strong>Frequently Asked Questions<\/strong><br><\/h2>\n\t\t\t\t<div class=\"elementor-element elementor-element-bddf283 elementor-widget elementor-widget-n-accordion\" data-id=\"bddf283\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:200,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1990\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-1990\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What is RBI purpose code P0017? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1990\" class=\"elementor-element elementor-element-228f82c e-con-full e-flex e-con e-child\" data-id=\"228f82c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base e-default-p\" data-interaction-id=\"537e917\">P0017 is used when an Indian company or individual permanently sells or assigns ownership of intangible assets - patents, copyrights, trademarks, or similar IP - to a foreign buyer and receives the sale proceeds from abroad. It is a Capital Account transaction covering the outright sale of IP, not recurring licensing income.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1991\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1991\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What is the difference between P0017 and P0902? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1991\" class=\"elementor-element elementor-element-96133d5 e-con-full e-flex e-con e-child\" data-id=\"96133d5\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base e-default-p\" data-interaction-id=\"8983f0c\">P0017 is for the permanent sale or assignment of IP ownership - after the transaction, the Indian entity no longer owns the patent, trademark, or copyright. P0902 is for licensing arrangements where the Indian entity retains ownership but grants usage rights to a foreign party in exchange for royalties. One is a capital event (sale); the other is ongoing income (licensing).<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1992\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1992\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Is there a FEMA approval required to sell IP to a foreign buyer under P0017? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1992\" class=\"elementor-element elementor-element-46fa98b e-con-full e-flex e-con e-child\" data-id=\"46fa98b\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base e-default-p\" data-interaction-id=\"67c8248\">The sale of intangible assets by Indian companies to non-residents is a Capital Account transaction under FEMA. Such transactions are generally permitted under the automatic route, but must be reported through the AD bank. Certain categories of IP sale (particularly in regulated sectors) may require prior approval. Your AD bank and a FEMA specialist should review the transaction structure before proceeding.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1993\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1993\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: How is the sale of IP to a foreign buyer taxed in India? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1993\" class=\"elementor-element elementor-element-96f6c48 e-flex e-con-boxed e-con e-child\" data-id=\"96f6c48\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base e-default-p\" data-interaction-id=\"f286cfb\">The sale of IP is a capital transaction and may attract capital gains tax in India. The tax treatment depends on whether the IP is classified as a short-term or long-term capital asset (based on holding period), the nature of the IP (self-generated vs. purchased), and the applicable income tax provisions. Self-generated IP has specific tax rules. Your CA should compute the capital gains liability before the transaction closes.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1994\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1994\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Can an Indian startup use P0017 when acquired by a foreign company that buys its IP? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1994\" class=\"elementor-element elementor-element-185697f e-flex e-con-boxed e-con e-child\" data-id=\"185697f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base e-default-p\" data-interaction-id=\"1b60923\">Yes. If a foreign acquirer purchases the Indian startup's IP - patents, brand, technology, code - as part of an asset purchase transaction (rather than a share acquisition), the proceeds would be tagged P0017 for the IP components. If the acquirer is buying shares of the Indian company, that would be P0001 (equity exit). The structure of the deal determines the correct code.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-1995\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"6\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-1995\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Does P0017 apply to the sale of domain names or social media accounts to foreign buyers? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-1995\" class=\"elementor-element elementor-element-03c5478 e-flex e-con-boxed e-con e-child\" data-id=\"03c5478\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base e-default-p\" data-interaction-id=\"c3e741b\">Domain names and established social media handles may be considered intangible assets in certain contexts. If an Indian entity sells a domain name or digital property to a foreign buyer and receives payment from abroad, P0017 could be argued as the appropriate code. However, the classification of digital assets under FEMA is evolving - consult your AD bank and CA for guidance on specific digital asset transactions.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"An Indian company is selling or permanently transferring ownership of intellectual property &#8211; patents, copyrights, or trademarks &#8211; to a foreign buyer\nand receiving the sale proceeds in India\nIndian companies, inventors, creators, and IP owners who sell or assign their intellectual property rights to overseas buyers\nInward remittance (money coming into India)","protected":false},"author":260895650,"featured_media":2277,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_page_reading_time":"","csco_page_toc_navigation":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1384],"tags":[],"class_list":["post-2487","post","type-post","status-publish","format-standard","has-post-thumbnail","category-purpose-codes","cs-entry","cs-video-wrap"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/phhXOC-E7","jetpack-related-posts":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/blog.remitcircle.com\/wp-content\/uploads\/2026\/09\/P0017.png?fit=1200%2C800&ssl=1","_links":{"self":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/users\/260895650"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/comments?post=2487"}],"version-history":[{"count":4,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2487\/revisions"}],"predecessor-version":[{"id":2491,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2487\/revisions\/2491"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media\/2277"}],"wp:attachment":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media?parent=2487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/categories?post=2487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/tags?post=2487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}