opening of branch office [Resolved]

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2010 What is the procedure for opening the branch office in foreign country by the Indian Private company?

Whether RBI permission is required?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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11 March 2011 RBI permission is not required if following conditions are met:
a. The overseas office should not create any financial liabilities contingent or otherwise for the head Office in India.
b. Exchange released by the authorized dealer should be strictly utilized for the purpose(s) for which it is released. They unused exchange may be repatriated to India under advice to the authorized dealer.
c. The details of bank account opened in the overseas countries should be promptly reported to the authorized dealer.
d. The approval granted for the purpose should be made valid for 6 months from the date thereof, within which time the applicant should open its overseas office or post representative abroad. In case the overseas office is not opened or the representative is not posted abroad within this period, intimation in writing to the effect should be sent to the authorized dealer immediately after expiry of 6 months period. Fresh application for release of exchange should be submitted to the authorized dealer as and when the overseas office is desired to be opened.
e. Profits, if any, earned by the overseas office/s should be repatriated to India.

Anuj
9810106211

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