![]() The documents must be in English, if not then the same must be translated, notarized and cross-verified or attested by the Indian Embassy or Consulate in the home country. The Certificate of IncorporationRegistration, Memorandum of Association and Articles of Association copy attested by the Notary Public in the country of registration.The documents required for the opening of the Branch or Liaison Offices are as follows: On fulfilling the eligibility criteria, the parent company must submit an application in Form FNC (As per Annex B of Foreign Exchange Management Regulations, 2016) for the establishment of a Liaison Office/ Branch Office/ Project Office or any other place of business. Greater than or equal to USD 100000 or its equivalentĪ track record showing profit during the immediately preceding 5 financial years in the home country. Greater than or equal to USD 50000 or its equivalentĪ track record showing profit during the immediately preceding 3 financial years in the home country. Government Route: If the principal business of the foreign parent company does not fall under the 100 sectors where 100% FDI is permissible under the automatic route or the application is from companies that are Non- Profit Organisations/ Non – Government Organisations / Government Bodies/ Departments, such applications will be considered by the RBI in consultation with the Ministry of Finance, Government of India.Īdditionally, the RBI will also consider the following criteria while sanctioning the Liaison office/ Branch office of a parent company. Reserve Bank Route: If the principal business of the foreign parent company falls under the 100 sectors where 100 % Foreign Direct Investment (FDI) is permissible under the automatic route, applications will be processed by RBI. The applications in Form FNC will be considered by the RBI under two routes: The parent company must obtain permission from the Reserve Bank of India (RBI)under provisions of Foreign Exchange Management Act, 1999 (“FEMA”) when it is desirous of opening a Liaison or Branch Office. Only receive inward remittances from the parent company through normal banking channels.Īll the expenses of the Branch office will be incurred using the funds received from abroad or the income generated by the branch. The following table illustrates the circumstance in which the above offices can undertake inward remittances: Liaison Office The primary condition for opening a project office India is that the parent company must have secured a contract from an Indian company. The project office can only undertake the activity relating and incidental to the project. The RBI grants the parent company situated abroad to have project offices in India for representing the interests of the parent company executing projects in India but excludes Liaison Office. Operate as a foreign airline or shipping company.Rendering support (technical) for the products supplied by the parent company.Providing services in information technology and software development in India.Representing the company in India and acting as an agent for trading.Encourage technical/financial collaboration between parent or group companies and Indian companies.Performing research work in which the parent company is engaged.Providing professional or consultancy services.The branch office can undertake only the following activities in India: The major restriction being carrying out manufacturing activities although the same can be subcontracted to Indian Manufacturers. They can carry out all the trading activities that a parent company does. Branch offices can carry on substantially the same business as the parent company. ![]() The offices are established to perform similar business operations as the foreign parent company at different locations in India.
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