Huge Issue for Indians to run a business, will Cyprus company w. bank work?

[cosmo]

Hi new to all this stuff,


As an Indian we are facing the following problems with the latest paypal changes:

With effect from 1 March 2011, you are required to comply with the requirements set out in the notification of the Reserve Bank of India governing the processing and settlement of export-related receipts facilitated by online payment gateways ("RBI Guidelines").
In order to comply with the RBI Guidelines, our user agreement in India will be amended for the following services as follows:


1. Any balance in and all future payments into your PayPal account may not be used to buy goods or services and must be transferred to your bank account in India within 7 days from the receipt of confirmation from the buyer in respect of the goods or services; and


2. Export-related payments for goods and services into your PayPal account may not exceed US$500 per transaction.
Click to expand...

As a small company this limits our possibilities to do any international business, because, we can't pay anyone for any service above $500 if it is outward payment, we can't charge anyone more thatn $500 if it is foreign... what can we do now?


We run a honest online business from India and have paypal payments to be made for sub contractors above $500 also our products sold costs sometimes more than $500 we can't charge this is the near future.


I was wondering will it make sense to open Cyprus company with Cyprus bank account to avoid these limitations?


How will PayPal accept a Cyprus company and bank account in Cyprus, I read it is possible but not how it can be done?

 

[JohnLocke]

If you make use of a Cyprus VPN then it may be possible to open an PayPal account with a Cyprus company and bank account in Cyprus, however, you will also have other options like 2co, RBS WorldPay and many other payment processors with a Cyprus company.

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[EliasIT]

It makes things complicated to use a VPN, but as Admin also mentioning then there are various other payment companies available once your are incorporated in Europe.

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[alibran]

I don't think it's necessary to use a VPN every time you access your PP account once it's set up, so you should only need it when you open your Cyprus PP account (although, having said this I've only accessed my UK PP account from countries within Europe, so I'm not sure if they're so relaxed about access from further afield). If you do go down this route, make sure you use a private VPN, not a shared one. PP seem to be aware of a lot of shared VPN services, and I know people who have had their accounts limited when using them, presumably because PP treat anyone who accesses their account through a known VPN as having something to hide.