Whether permission of RBI or any authority required to open proprietory concern in Hong Kong, FEMA

[RAVINDER GAMBHIR]

my client resident indian wants to open a proprietory concern in Hongkong.Is permission from RBI or any other authority required.

Posts / Replies

[Rama Krishana]

As such there is no restriction for opening a branch outside India by a person who is resident in India. But, if you are dealing with branch or through branch in financial terms, the outflow of foreign exchange occurs, capital account transactions are involved, properties are purchased etc. etc. RBI through the provisions of FEMA, foreign exchange management act, governs these issues. Therefore, you need to refer all these provision which are application in different circumstances in different manner.