Whether permission of RBI or any authority required to open proprietory concern in Hong Kong

[RAVINDER GAMBHIR]

my client resident indian wants to open a proprietory concern in Hongkong.Is permission from RBI or any other authority required.

[Rama Krishana]

As such there is no restriction for opening a branch outside India by a person who is resident in India. But, if you are dealing with branch or through branch in financial terms, the outflow of foreign exchange occurs, capital account transactions are involved, properties are purchased etc. etc. RBI through the provisions of FEMA, foreign exchange management act, governs these issues. Therefore, you need to refer all these provision which are application in different circumstances in different manner.

AI Summary

Resident Indian Seeks Guidance on Opening Proprietary Concern in Hong Kong; Review FEMA for Compliance on Financial Dealings. A resident Indian wants to open a proprietary concern in Hong Kong and inquires whether permission from the Reserve Bank of India (RBI) or any other authority is required. The response indicates that while there is no restriction on opening a branch outside India, financial dealings involving foreign exchange, capital account transactions, or property purchases may require compliance with the Foreign Exchange Management Act (FEMA) provisions. It is advised to review these provisions as they apply differently depending on the circumstances.