TMI BlogApproval for opening a branch office or a liaison office or a project office or any other place of business in IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... iterion: i. For Branch Office - a profit making track record during the immediately preceding five financial years in the home country and net worth of not less than USD 100,000 or its equivalent. ii. For Liaison Office - a profit making track record during the immediately preceding three financial years in the home country and net worth of not less than USD 50,000 or its equivalent. Provided that a person resident outside India that is not financially sound and are subsidiaries of other companies may submit a Letter of Comfort (Annex A) from their parent company subject to the condition that the parent company satisfies the prescribed criterion for net worth and profit. b. Permissible activities A person resident outside I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years subject to the provisions of Regulation 4 d (III). The non-resident entity may apply to the Authorised Dealer Category-I bank concerned for extension of the validity period of approval, and upon receipt of such an application, the Authorised Dealer Category-I bank concerned may extend the validity period of approval for a period of three years from the date of expiry of the original approval / extension granted, subject to such directions issued by the Reserve Bank in this regard. II. The application for extension of the validity period of the liaison office of banks and entities engaged in insurance business has to be directly submitted to the Department of Banking Regulation (DBR), Reserve Bank and the Insurance Regulatory and D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pose of this Regulation, i. 'a bilateral or multilateral International Financing Agency' means the World Bank or the International Monetary Fund or similar other body. ii. Public Financial Institution is a public financial institution as defined in Section 4A of the Companies Act, 1956 . II. A person from any country other than Pakistan who has been awarded a contract for a project by a Government Authority/ Public Sector Undertaking may open a bank account with an Authorised Dealer Category-I bank without any prior approval from the Reserve Bank. g. Registration with State Police Authorities A person from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau opening a branch office or a liaison o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e statutory auditor s certificate showing the manner of arriving at the remittable surplus and confirming that sufficient provisions have been made to meet the liabilities in India including Income Tax, etc.; and iii. An undertaking from the project office that the remittance will not, in any way, affect the completion of the project in India and that any shortfall of funds for meeting any liability in India will be met by inward remittance from abroad. j. Acquisition of property Acquisition of property by branch office/project office shall be governed by the guidelines issued under Foreign Exchange Management (Acquisition and transfer of immovable property outside India) Regulations. k. Transfer of assets A person reside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice/liaison office may be submitted to the Authorised Dealer Category - I bank along with the following documents: i. Copy of the Reserve Bank's/Authorised Dealer Category-I bank s approval for establishing the office. ii. Auditor's certificate : 1. indicating the manner in which the remittable amount has been arrived at and supported by a statement of assets and liabilities of the applicant, and indicating the manner of disposal of assets; 2. confirming that all liabilities in India including arrears of gratuity and other benefits to employees, etc. of the office have been either fully met or adequately provided for; 3. confirming that no income accruing from sources outside India (including proceeds of exports) has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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