Dear Sir,
This is with reference in connection with opening of a Branch Office by a Foreign Company / Entity in India.
A) INTRODUCTION
1. Foreign companies/entities desirous of setting up of Branch Office (BO) are required to submit their application in prescribed form along with the documents mentioned therein to the Reserve Bank of India (RBI) through an Authorized Dealer (AD) bank.
2. The applications from such entities will be considered by the Reserve Bank under two routes
a) Reserve Bank Route – Where principal business of the foreign entity falls under sectors where 100 per cent Foreign Direct Investment (FDI) is permissible under the automatic route.
b) Government Route – Where principal business of the foreign entity falls under the sectors where 100 per cent FDI is not permissible under the automatic route. Applications from entities falling under this category are considered by the Reserve Bank in consultation with the Ministry of Finance, Government of India.
3. Additional criteria required:
a) Track record – A profit making track record during the immediately preceding five financial years in the home country.
b) Net Worth [total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name] not less than USD 100,000 or its equivalent.
4. The Branch Offices (BOs) have to file a certificate from the Auditors, as at end of March 31, along with the audited Balance Sheet on or before September 30 of that year, stating that the Branch Office has undertaken only those activities permitted by Reserve Bank of India.
5. BOs are permitted to represent the parent / group companies in India and carry the only those activities which are permitted by the RBI. Normally, the Branch Office should be engaged in the activity in which the parent company is engaged.
B) PROFESSIONAL FEES
We are pleased to inform you that the standard fees for opening a Branch Office of a Foreign Entity in India will be depend son facts of the case.
C) PLACE OF RENDERING SERVICES :
The place of rendering services generally shall be our office situated at 496B, 2nd Floor, Near KCC Classes, Kasba Peth, Pune – 411011.
For us clients are important and we are interested in keeping long term relationship with client’s always.
Kindly sign a copy of the letter/ or mail me at info@csladda.com in token of approval or you may issue separate letter accepting terms and condition of this letter.
Thanking you and assuring best professional services;
I remain,
Yours faithfully
Sd/-
Pramodkumar R. Ladda
Company Secretary
