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

Foreign exchange control: opening a proprietorship abroad may be allowed, but overseas remittances and capital transactions are governed by FEMA. Opening a proprietorship abroad by a resident Indian is not inherently restricted, but outbound remittances, capital account transactions, foreign property purchases and other cross-border financial dealings are regulated by the Reserve Bank of India and the Foreign Exchange Management Act; specific permissions, reporting and compliance depend on the nature of the transactions.