![]() PO needs to submit the AAC to the designated AD bank. India being one of the fastest growing economy, such efforts of “Ease of doing business in India” will allow more and more foreign party(s) to establish their business in India.Closure of Liaison Office / Branch Office 15 January 2018 The concerned Project Office needs to submit along with the required document(s) AAC as at the end of March 31 each year. Any other document/s, specified by Reserve Bank of India/ AD Bank while granting approval.ĭesignated AD Category-I bank may allow remittance of winding up proceeds in respect of offices of banks and insurance companies, after obtaining copies of permission of closure from the sectoral regulators along with the documents mentioned above.ĪNNUAL COMPLIANCE - ANNUAL ACTIVITY CERTIFICATE (AAC).The designated AD Bank has to ensure that the PO had filed their respective Annual Activity Certificate(s).Confirmation from the applicant/parent company that no legal proceedings in any Court in India are pending against the PO and there is no legal impediment to the remittance.Confirming that no income accruing from sources outside India (including proceeds of exports) has remained unrepatriated to India.of the office have been either fully met or adequately provided for and ![]() Confirming that all liabilities in India including arrears of gratuity and other benefits to employees, etc.Indicating the manner in which the remittable amount has been arrived at and supported by a statement of assets and liabilities of the applicant and indicating the manner of disposal of assets.Copy of the Reserve Bank's/AD Bank approval for establishing the PO.Requests for closure of the PO and allowing the remittance of winding up proceeds of PO may be submitted to the designated AD Category - I bank (AD Bank) by the PO or their nodal office, as the case may be. PROCEDURE FOR CLOSING A PROJECT OFFICE (PO): Copy of approval letter for ‘persons’ from these countries shall be marked by the AD Category-I bank to the Ministry of Home Affairs, Internal Security Division-I, Government of India, New Delhi for necessary action and record. Registration with police authorities: However, Applicants from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong, Macau or Pakistan desirous of opening Project Office(s) in India shall have to register with the state police authorities. Any further extension shall require prior approval of RBI. For reason beyond control AD bank may grant extension for a further period of six months. The applicant is required to set up the project office within six months of receipt of approval letter.In case the permission granted has been surrendered or expired and no project office has been setup the AD Bank shall inform RBI accordingly.AD bank shall in turn inform RBI accordingly. On receipt of permission for setting up of project office in India, the applicant has to inform AD Bank, the date on which Project Office has been established.The validity period of the project office is for the tenure of the project.AD Bank after Scrutinizing the application and compliance with the extant KYC norms allow establishment of Project Office in India.Letter of Comfort (An applicant that is not financially sound and is a subsidiary of another company may submit a Letter of Comfort from its parent/ group company, subject to the condition that the parent/ group company satisfies the prescribed criteria for net worth and profit). The application for establishment of PO in India, to be submitted by the Non-Resident in Form FNC to a designated AD Category 1 Bank (AD Bank), along with the prescribed documents mentioned in the Form FNC and the LOC i.e.PROCEDURE FOR ESTABLISHING PROJECT OFFICE (PO): 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. ![]()
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