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Approval for opening a branch office or a liaison office or a project office or any other place of business in India

Regulation 4 - Regulation - Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016 - Regulation 4 - 4. a. Eligibility A person resident outside India can establish a branch office or a liaison office in India provided it meets the following criterion: i. For Branch Office - a profit making track record during the immediately preceding five financial years in the home country and net worth of .....

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on for net worth and profit. b. Permissible activities A person resident outside India permitted by the Reserve Bank under these Regulations to establish a branch or liaison office in India may undertake or carry on any activity specified in Schedule I or II (Annex B), as the case may be, but shall not undertake or carry on any other activity unless otherwise specifically permitted by the Reserve Bank. c. Application form A person resident outside India desiring to establish a branch office or a .....

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d. In cases where the person resident outside India is not able to open the office within the stipulated time frame due to reasons beyond their control, the Authorised Dealer Category-I bank may consider granting extension of time for setting up the office by a further period of six months. Any further extension of time shall require the prior approval of the Reserve Bank in this regard. d. Extension of the validity period for liaison office I. A person resident outside India may establish in In .....

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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 Development Authority (IRDA) respectively. III. Entities engaged in construction and development sectors and which are Non-Banking Finance Companies are permitted to open a Liaison Office .....

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a desiring to establish additional branch office or liaison office may submit to the Authorised Dealer Category-I bank a fresh FNC Form along with the justification for the need for additional office/s. f. Project office I. A foreign company may open project office/s in India provided it has secured from an Indian company, a contract to execute a project in India, and i. the project is funded directly by inward remittance from abroad; or ii. the project is funded by a bilateral or multilateral I .....

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ancial 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 liaiso .....

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idelines issued by the Reserve Bank in this regard. i. Remittance of profit or surplus I. Branch office may remit outside India profit of the branch net of applicable Indian taxes, on production of the following documents to the satisfaction of the Authorised Dealer Category-I bank through whom the remittance is effected: i. A certified copy of the audited Balance Sheet and Profit and Loss account for the relevant year. ii. A Chartered Accountant s certificate certifying 1. the manner of arrivin .....

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ng 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 offic .....

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nk shall be guided by the instructions laid down by Reserve Bank in this regard. l. Annual Activity Certificate (AAC) The branch office/liaison office may submit the Annual Activity Certificate (Annex D) as at the end of March 31 along with the audited financial statements including receipt and payment account on or before September 30 of that year. In case the annual accounts of the office are finalized with reference to a date other than March 31, the AAC along with the audited financial state .....

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