TaxTMI 
TaxTMI 
Terms & condition for Approval for opening a branch office or a liaison office or a project office or any other place of business in India
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....lish a branch office or a liaison office in India provided its fulfil the following condition • For Branch Office - • A profit making track record during the immediately preceding five financial years in the home country and • net worth of not less than USD 100,000 or its equivalent. • For Liaison Office - • A profit making track record during the immediately preceding three financial years in the home country and • net worth of not less than USD 50,000 or its equivalent. • For a company that is not financially sound and are subsidiaries of other companies • may submit a Letter of Comfort (Annex A) from their parent company sub....
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....y further extension of time shall require the prior approval of the Reserve Bank in this regard. Application for opening Additional offices • A person resident outside India desiring to establish additional branch office or liaison office may submit to the Authorised Dealer Category-I bank a fresh FNC (Annex C) Form along with the justification for the need for additional office/s. Extension of the validity period for liaison office • A person resident outside India may establish in India under these Regulations a liaison office for a period of three years subject to the provisions of Regulation 4(d) (III). • The non-resident entity may apply to the Authorised Dealer Category-I bank con....
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....s secured from an Indian company, a contract to execute a project in India, and • i. the project is funded directly by inward remittance from abroad; or • ii. the project is funded by a bilateral or multilateral International Financing Agency; or • iii. the project has been cleared by an appropriate authority; or • iv. a company or entity in India awarding the contract has been granted term loan by a Public Financial Institution or a Bank in India for the Project. Explanation: i. 'a bilateral or multilateral International Financing Agency' means the World Bank or the International Monetary Fund or similar other body. ii. "Public Financial Institution" is ....
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....d project offices based on the guidelines issued by the Reserve Bank in this regard. Remittance of profit or surplus, Acquisition of property and Transfer of Assets of by the branch outside India Remittance of Profit or surplus I. Branch office may remit outside India profit of the branch net of applicable Indian taxes, on production of the following documents to the satisfaction of the Authorised Dealer Category-I bank through whom the remittance is effected: • A certified copy of the audited Balance Sheet and Profit and Loss account for the relevant year. • A Chartered Accountant's certificate certifying • 1. the manner of arriving at the remittable profit; â€....
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....t office may apply to the concerned Authorised Dealer Category-I bank for transfer of its assets to a Joint Venture/Wholly Owned Subsidiary or any other entity in India. Authorised Dealer Category-I bank shall be guided by the instructions laid down by Reserve Bank in this regard. Annual Activity Certificate (AAC) • Where annual account of office finalized as on 31st March • The branch office/liaison office may submit the Annual Activity Certificate (Annex D) • as at the end of March 31 along with the audited financial statements including receipt and payment account • on or before September 30 of that year. • Where annual account of office finalize other tha....