Foreign branch of a pvt. ltd. company
This query is : Resolved
08 December 2009
hello everybody,
My company is a private limited company registered under company act 1956 and now i want to establish a branch in usa. can some body tell me process of establishing branch in usa.
My company is a private limited company registered under company act 1956 and now i want to establish a branch in usa. can some body tell me process of establishing branch in usa.
08 December 2009
If you are establishing a branch from scratch, RBI has delegated powers to your Authorised Dealer to approve your branch setup. You can choose any one of your bank (AD) as a designated AD for purpose of your investments in branch office abroad and you can incorporate a new company or takeover an existing one. Once you choose AD all your remittances and reporting will have to be through this one AD only. The ceiling is upto your Nett Worth. If the remittance is over $5 million for taking an existing company, you have to get valuation approved by SEBI approved valuator for this purpose. For below this amount CA certification is sufficient.
In case you wish, you can also remit for taking property on lease to set up office abroad without incorporating a company. However, you can remit only upto your nett worth. beyond that you have to apply to RBI through your AD.
You will have to comply with laws of the other country for incorporating a new company or take over of existing company. You may also need to register your Indian company with the companies department abroad if you are opening a branch or liaison office.
In case you wish, you can also remit for taking property on lease to set up office abroad without incorporating a company. However, you can remit only upto your nett worth. beyond that you have to apply to RBI through your AD.
You will have to comply with laws of the other country for incorporating a new company or take over of existing company. You may also need to register your Indian company with the companies department abroad if you are opening a branch or liaison office.
CA. Anuj Gupta
(Expert)
09 June 2011
The process is pretty simple ,you just need to send the money to foreign account opened outside India.However there may be compliances to be done for opening branch in USA.
Anuj
+91-9810106211
femaquery@gmail.com
Anuj
+91-9810106211
femaquery@gmail.com
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