Checklist to Open Branch Office of Company in India

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Komal Mehta

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Jan 16, 2013, 5:26:15 AM1/16/13
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Dear All,
Please Checklist to Open Branch Office of Company in India.




Regards,
Komal Mehta

c k raja

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Jan 16, 2013, 5:33:22 AM1/16/13
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Dear Komal,

ESTABLISHMENT OF BRANCH OR OFFICE IN INDIA

 

·         No person resident outside India shall, without prior approval of Reserve Bank of India (RBI) establish in India a branch or a liaison office or any other place of business by whatever name called.

 

·         Application in Form FNC-1 has to be made to RBI, to get the above mentioned approval

 

·         However, no approval is be necessary for a Banking company, if such company has obtained necessary approval under the provisions of the Banking Regulation Act, 1949.

 

·         Setting up of liaison office (Representative Office) will also require RBI approval, even if it does not undertake business activity in India.

 

·         However, Foreign Insurance Companies can establish liaison offices in India, if they have obtained prior approval from Insurance Regulatory & Development Authority (IRDA)

Project Office in India without permission of RBI in certain cases:

·         A Foreign Company may open a project office in India without prior permission of RBI, if it has secured from an Indian Company a contract to execute a project in India, and

 

v  The project is funded directly by Inward remittance from abroad (or)

v  The project is funded by bilateral or multinational international financing agency (or)

v  The project has been cleared by an appropriate authority (or)

v  A company or entity in India awarding the contract has been granted term Loan by a Public Financial Institution or Bank in India for the project.

 

·         Project office of foreign company in India can open foreign currency account for project offices in India without permission from RBI, if contract provides for payment in foreign currency. Intermittent remittances are permissible.

Branch Office in SEZ

·         Branch Office can be established in SEZ to undertake manufacturing and service activities, without permission of RBI in those sectors where 100% FDI is permitted.

 

 

 

Account by Branch / Project Office / Liaison office or person resident out of India

Ø  Person resident outside India opening a branch / project / liaison office can open a Rupee Bank Account in India in NON-INTERST BEARING ACCOUNT.

 

Ø  If there are temporary surplus funds, these can be kept as deposits for a period not exceeding 6 months. However, this facility is not available to shipping / airline companies.

Permitted activities by branch in India

·         Export / Import of goods.

·         Rendering Professional / Consultancy Service

·         Carrying out Research work, in which the parent company is engaged

·         Promoting technical / financial collaboration between parent company and Indian companies

·         Representing the parent company in India and acting as buying / selling agent in India

·         Rendering services in Information Technology and development of software in India

·         Rendering technical support to the products supplied by parent / group companies

·         Foreign airline / shipping company

Restrictions under Company law on branches of foreign companies

·         Foreign Companies carrying on business in India have to file prescribed documents to Registrar and file its annual accounts every year.

 

Form NO

Contents

44

Documents to be delivered by Foreign Company for registration

52

·         Change in the Particulars of the Authorized Person

 

·         Change in the Principal Place of Registered Office

 

·         Annual Accounts & List of Place of Business

 

·         Cessation of Business

 

·         Further, Department of Company affairs has clarified that if the foreign company has only liaison office in India and has obtained RBI permission, it should only produce copy of letter of RBI and statement of receipts and payments made by Indian branches of the foreign company. Such statement should be certified by Chartered accountant and authorized representative of the company.


rRaja CK



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With Regards

C K Raja

R V Seckar

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Jan 16, 2013, 5:35:00 AM1/16/13
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Hello,
 
You have to get the prior approval from RBI.
 
 
 
For procedures, Please visit the following link:
 
Regards
 
R.V.Seckar

 

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