Opening of Liaison Office: Actual procedure

Dear All,

Hi. I am a recent member in the group. Please tell me as to what exactly the procedure is for opening of Liaison Office in India.

As I understand from Master Circular of 2009 issued by the RBI, the application for opening of Liaison office in India has to be routed though category 1 AD bank. When approached, the bank refused to entertain the application on the sole ground that applicant foreign company since being not a customer of the bank can not be considered for checking the credentials of the applicant by the bank. And also for that KYC norms are hit since the applicant foreign co. is unknown or not being a customer of the bank. The bank eventually refused to forward the application. On the otherhand, application can not be directly submitted to the RBI also since circular prescribes otherwise. Is there some way out to knock door first at RoC by getting establishment of business & names of the foreign co. for opening of liaison office registered and come back to the bank with earlier request.

Please suggest the way-out.

Thanks & regards.

Rabin Majumder
Advocate & Attorney
NuDelhiLawFora
At:
Ch. 91, Sh. AK Sen Chambers Block,
Supreme Court of India
New Delhi - 110001
Also at:
Lawyers’ Consultation Room /
2nd Floor, Bar Room
Delhi High Court
New Delhi – 110003
+ 91 98992 59811
+ 91 9013307807
+ 91 11 65955548

Dear Rabin,

you are require to follow the above mentioned procedure to open a liaison offce:

Apply to RBI for permission to open a liaison office in India.

The application for permission should be made to Reserve Bank, Central Office in Form FNC 1 specified under the FEM (Establishment in India of a Branch Office or other Place of Business) Regulations, 2000.

File with Registrar of Companies the following documents within 30 days of establishment of place of business.

Form 44 of the Companies (Central Govt.’s) General Rules & Forms, 1956.
Demand draft of Rs 5000/- as filling fee.
RBI permission to establish Liaison office in India
Certified copy of the certificate of incorporation and MOA and AOA of the Foreign Company. (English Translation of these documents required if they are in any other language.)
Power of Attorney in favor of a person resident in India, authorizing him to accept on behalf of a company service of process and any notices or other documents required to be served on the company.
A list of directors of the Company, containing particulars regarding name & surname in full, his usual residential address, nationality, business occupation and if he has no business occupation but holds any other directorships, particulars of that directorship or of some one of those directorships.
A list of secretary(s) of the Company, containing particulars regarding name & surname in full, his usual residential address.
Extracts of Board Resolutions of the Foreign Company
Documentary Proof of Establishment of office (E.g.: - Rent agreement, lease deed etc.)
Certified True Copy of Certificate of change in object/name etc. of the Foreign Company.

The Documents mentioned in point 4,5,6,7,8 should be notarized and Consularised in the Foreign Country.

After being satisfied that all the relevant requirements have been complied with, the Registrar Of Companies will issue a Certificate of Establishment of Place of Business in India

Regards

Vishal

9871084820