Exchange controls decide whether a business can convert local currency and send it abroad, and what evidence the bank needs first. The UK, UAE and Saudi Arabia impose no general controls. India allows current account payments but controls capital flows under FEMA; China requires documents for outbound payments; Nigeria and Egypt have liberalised their markets since 2023 but still depend on documentation and bank processing.
Free-currency markets
The UK has had no exchange control legislation since 1979, and Saudi Arabia does not limit remittances of profits, capital or debt service other than through withholding taxes. The UAE has no restrictions on payments and transfers for international transactions beyond security-related ones. In these markets the practical limits are sanctions screening, anti-money-laundering checks and tax withholding, not currency approval.123
India and China: current account open, capital account controlled
The rupee is fully convertible only for current account transactions, with partial capital account convertibility. The US State Department reports that profit remittances are permitted once taxes are paid, though some foreign financial firms report difficulty obtaining approval. Foreign investment rules are notified as the FEMA (Non-debt Instruments) Rules, and the RBI's Master Directions on imports and exports, updated in 2026, govern how banks process trade payments.
In China, SAFE administers foreign exchange. Current-account payments may be remitted when supported by contracts, invoices and tax payment or exemption certificates, which the bank reviews.456789
Nigeria and Egypt: reformed markets that still need paperwork
Nigeria liberalised its market in June 2023 and achieved exchange rate unification in 2024; in October 2023 it lifted the bar on importers of 44 product categories using official foreign exchange. Dividends can be transferred freely after 10% withholding tax, with evidence that income was earned and tax paid, and transfers usually take no more than 48 hours. Capital must come in through an authorised dealer so that a Certificate of Capital Importation is issued; the NIPC Act guarantees transfer of dividends, loan servicing and sale proceeds.
Egypt adopted a flexible exchange rate in March 2024. Its Investment Law provides for free transfer of profits in a convertible currency.10111213141516
| Market | Regime | Repatriation condition | Source |
|---|---|---|---|
| United Kingdom | No exchange control since 1979 | Sanctions, AML and tax only | Finance Act 1987 s68 |
| UAE | No restrictions on international payments | Security-related restrictions only | US State Department |
| Saudi Arabia | No limits on remittances | Withholding taxes | US State Department |
| India | Current account convertible; capital account partial | Permitted once taxes paid; some report approval delays | US State Department |
| China | SAFE administers foreign exchange | Contracts, invoices, tax certificates | PwC summary |
| Nigeria | Unified market since 2024 | CCI, evidence of tax paid; 10% withholding on dividends | US State Department; NIPC |
| Egypt | Flexible rate since March 2024 | Free transfer under Investment Law | GAFI; US State Department |
Decisions to make
- Is the payment a current account item (trade, services, dividends) or a capital account item (investment, loan principal)?49India and China treat the two differently.
- Was the original investment documented when it came in?1314Nigeria's Certificate of Capital Importation supports later access to foreign exchange.
- Has tax on the profit been paid and evidenced?129Nigerian banks require evidence of income and tax paid before dividend transfers; Chinese banks require tax certificates.
- Is the market one with no exchange control?132In the UK, UAE and Saudi Arabia the timetable depends on AML and tax, not currency approval.
Documents usually needed
- Evidence of the original investment (FDI reporting in India; Certificate of Capital Importation in Nigeria)
- Board resolution declaring the dividend and audited accounts showing distributable profits
- Tax payment or exemption evidence and any treaty certificate
- Commercial contracts and invoices for trade and service payments
- The bank's remittance application form
Common mistakes
- Bringing capital into Nigeria outside an authorised dealer, leaving no Certificate of Capital Importation
- Treating loan principal or share buy-backs in India as if they were current account payments
- Assuming reforms in Nigeria and Egypt remove the need for supporting documents
- Ignoring sanctions and AML checks in markets without exchange control
Questions businesses ask
Can an Indian subsidiary pay dividends to its foreign parent freely?
The rupee is fully convertible for current account transactions, and the US State Department reports that profit remittances are permitted once taxes are paid, although some foreign financial firms report approval difficulties. Confirm the classification and documents with the authorised dealer bank.45
What this guide does not yet confirm
These points need checking with a qualified local professional before you rely on them.
- Bangladesh could not be researched: the US State Department page for Bangladesh could not yet be checked and Bangladesh Bank pages were not reachable.
- Central Bank of Nigeria and Central Bank of Egypt pages could not yet be checked; Nigerian and Egyptian points rely on the US State Department and investment agency sources.
- The RBI Master Directions themselves could not yet be checked, so the documentary requirements for Indian import payments are not set out.
- China's capital account rules for foreign debt and profit remittance were not confirmed on SAFE's site.
Sources and review status
Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.
The Exchange Control Act 1947 ceased to have effect under section 68 of the Finance Act 1987, so there is no general UK exchange control legislation restricting capital movements or profit repatriation. Sanctions, anti-money laundering rules and tax withholding still apply to cross-border payments. Section 68 preserves a Treasury certificate power only for acts done before 13 December 1979.
The abolition is confirmed from the statute; the second half of the statement (no other general exchange control law) is an inference not stated on a current official page. Reused from market guide claim gb-banking-g01.
Saudi Arabia does not limit remittances of profits, debt service, capital, capital gains, returns on intellectual property or payments for imported inputs, other than certain withholding taxes, and there are no waiting periods for remitting investment returns through normal legal channels.
Secondary (foreign government) source; consistent with Article 4 of the Investment Law (claim sa-banking-001). Reused from market guide claim sa-banking-g03.
The UAE has no restrictions on making payments and transfers for international transactions, other than security-related restrictions, and currencies trade freely at market-determined prices. Federal, as reported from the IMF by the source. The dirham is pegged to the US dollar.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
The Indian rupee is fully convertible only for current account transactions; India maintains partial capital account convertibility, under which foreign exchange transactions on capital account are controlled. Central rule (RBI under FEMA). The FEMA definitions of current and capital account transactions could not yet be checked.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
The US State Department reports that India permits remittance of foreign companies' profits once taxes have been paid, but that some foreign financial services firms have complained of difficulty obtaining approval to repatriate funds to their headquarters. Central rule (RBI under FEMA), as described by a foreign government source. Some sectors carry lock-in periods, and some transactions, such as remittance of share sale proceeds, may need RBI approval.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
FDI policy issued by DPIIT through the Consolidated FDI Policy, Press Notes and Press Releases is notified by the Department of Economic Affairs as amendments to the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 under the Foreign Exchange Management Act, 1999. Central rule.
Reused from market guide claim in-banking-001.
The RBI's Master Direction on Import of Goods and Services is shown as updated as on 12 January 2026, and its Master Direction on Export of Goods and Services as updated as on 17 July 2026. Central rule (RBI). These directions govern how authorised dealer banks handle import payments and export receipts.
;.
Foreign exchange transactions are administered by the State Administration of Foreign Exchange (SAFE) and its branches.
Secondary source; SAFE English homepage was opened but does not summarise the regime. Reused from market guide claim cn-banking-001.
Current-account payments may be remitted overseas when supported by proper contracts, invoices and tax payment or exemption certificates. Current-account items such as trade payments, service fees and dividends; banks review the documents.
Secondary source. Reused from market guide claim cn-banking-002.
The Central Bank of Nigeria liberalised the foreign exchange market in June 2023 on a willing-buyer, willing-seller basis, and Nigeria achieved exchange rate unification with an average divergence of less than 2 percent in 2024. National. The naira was devalued in late January 2024 and stabilised at about 1,500 per US dollar by the end of 2024.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
In October 2023 the Central Bank of Nigeria repealed the restriction that had barred importers of 44 product categories from accessing foreign exchange in the official market. National.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
Nigeria guarantees unrestricted transfer of dividends abroad, subject to 10 percent withholding tax, but a company must show evidence that it earned the income and paid taxes before repatriating; money transfers usually take no more than 48 hours. National. Through authorised dealer banks; withholding rate as stated by the source and to be confirmed under the Nigeria Tax Act 2025.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
Foreign capital imported into Nigeria must come through an authorised dealer, typically a bank, and the resulting Certificate of Capital Importation entitles the investor to open a foreign currency account and access foreign exchange for repatriation. National.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
The NIPC Act guarantees foreign investors unconditional transferability, through an authorised dealer in a freely convertible currency, of net dividends, loan servicing payments and sale proceeds.
Official NIPC summary, stated to be not legally binding; the underlying Act could not yet be checked directly. Section references in the booklet are inconsistent in places. Reused from market guide claim ng-banking-001.
In March 2024 Egypt devalued its currency, for the fourth time since March 2022, and adopted a flexible exchange rate. National. Foreign firms report greater access to hard currency since the March 2024 IMF agreement; some report short delays in repatriating profits because of processing steps.
Secondary (foreign government) source: US Department of State 2025 Investment Climate Statement. Central bank pages for this country could not yet be checked.
Investors may transfer their profits abroad, and cash transfers for foreign investment are to be freely transferable in a freely convertible currency. Investors under Law No. 72 of 2017.
Unofficial English translation published by GAFI; the Arabic text prevails. Reused from market guide claim eg-banking-001.
Questions on this topic
16 statements on exchange controls and repatriation
