setting up of a branch office outside india

[yoganand l]

can some one pls provide me the procedure for setting up of a branch office outside india

regards,

yogan.

[arjun harithas]

Hi,

Indian entity can open branch outside India for business purposes. It can open foreign currency bank account with foreign bank and remit funds from India for maintenance of branch (check the rules and redulation regarding the foreign currency account).

The opening of foreign branches is subject to following conditions:

(i) Overseas branches can be established only to conduct normal business activities of Indian enterprise.
(ii) Total annual remittance from India for meeting branch expenses can not exceed-

o 15% of average annual sales/income or turnover during last two accounting years or up to 25% of the net-worth, whichever is higher, where the remittance are made for initial expenses.
o 10% of such average annual sales/income to meet recurring branch expenses.

(iii) The branch shall not undertake any activity in contravention of Indian exchange control regulations, such as no financial liability should be created, no immovable property can be purchased without specific approval of RBI etc.

However, there are no specific provisions in FEMA for opening a branch outside India.

Pls correct me if am wrong


Best Regards

 

Arjunharithas
 

 

 

 

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Arjun

[Devesh Pandey]

Please go to the following link:

http://cacscorporatelaw.blogspot.com/2011/03/checklist-for-establishment-of-liaison.html

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[Vivek Aggarwal]

Dear Yoganand

I think the attachment will be useful for you.

 

Regards
CS Vivek Aggarwal

---

From: yoganand l <cs.y...@gmail.com>
To: company_secretary <company_...@yahoogroups.com>; CharteredSecretaries <CharteredS...@yahoogroups.co.in>; csmysore <csmy...@googlegroups.com>; csch...@googlegroups.com
Sent: Wed, 16 March, 2011 11:09:48 AM
Subject: [CSMysore] setting up of a branch office outside india

can some one pls provide me the procedure for setting up of a branch office outside india

regards,

yogan.

--

[yoganand l]

sir, attachment is missing

kindly send the same.

regards,

yogan.

[yoganand l]

sir,

is it required to take prior approval of rbi for opening of a branch office outside india

kindly guide.

regards,

yogan.

 Wed, Mar 16, 2011 at 11:21 AM, arjun harithas <ahari...@gmail.com> wrote:

[arjun harithas]

Dear sir,

 

   RBI approval is necessary  to open an branch office outside the country. as per my knowledge.

 

 

Pls correct me if am wrong.......

 

Regards

ARJUNHARITHAS

[R V SECKAR]

Dear Mr.Yogan,

If the company is a new company with no track record , then you have to get the approval from RBI.

If the company is an existing company with track record , then , it will fall under automatic route and you may approach your authorised dealer and they are empowered to accord approval for such expenses and to transfer funds to meet the expenes of your foreign branch.

R.V.Seckar

R.V.Seckar

Pl do visit my blogs :

http://www.rvseckarcompanylaw.blogspot.com/

http://rvseckarfema.blogspot.com/

http://rvseckarindianlaws.blogspot.com

[R V SECKAR]

Dear Mr Arjun

As per recent RBI master circular , no prior approval is needed from RBI for opening a branch office in abroad.

Please click the following link to know more about the subject:


http://rvseckarfema.blogspot.com/2011/02/procedure-for-opening-branch-liaison.html

R.V.Seckar

Pl do visit my blogs :

http://www.rvseckarcompanylaw.blogspot.com/

http://rvseckarfema.blogspot.com/

http://rvseckarindianlaws.blogspot.com

[yoganand l]

which master circular has this reference

kindly tell me

regards,

yogan.