03 January 2010
i have filled the Income Tax Return and ROC Return in form-52. Now i want to know that how to report the RBI? What is the procedure? please advise step by step. thanks in advance
03 January 2010
Procedure for opening Branch/Project/Liaison Office is as follows.
1.Foreign company can set up Liaison/Branch Offices in India after obtaining approval from Reserve Bank of India. Reserve Bank of India has given general permission to foreign companies to establish Project Offices in India subject to certain conditions. 2. What is the procedure to be followed for obtaining Reserve Bank's approval for opening Liaison Office/Representative Office?
A Liaison office can carry on only liaison activities, i.e. it can act as a channel of communication between Head Office abroad and parties in India. It is not allowed to undertake any business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of foreign exchange from the Head Office abroad. The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to the prospective Indian customers.
The companies desirous of opening a liaison office in India may make an application in form FNC-1 along with the documents mentioned therein to Foreign Investment Division, Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai. This form is available at www.rbi.org.in
Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Regional Office in whose jurisdiction the office is set up. Liaison/Representative offices have to file an Activity Certificate on annual basis from a Chartered Accountant to the concerned Regional Office of the Reserve Bank of India , stating that the Liaison Office has undertaken only those activities permitted by Reserve Bank of India .
03 January 2010
thank you very much Mr. B. Chackrapani warrie for this valuable information. It explained very well. once again thanks to you. could you please provide me the format of stating that the Liaison Office has undertaken only those activities permitted by Reserve Bank of India. and any type of partiuclar form for this or in letter head of chartered accountant is sufficient for this.
03 January 2010
Format is given below. IN THE LETTER HEAD OF CHARTERED ACCOUNTANT.
Annual Activity Certificate
(To be submitted as on March 31.. on or before April 30, ) To whomsoever it May Concern
This is to certify and confirm that during the period from_________to , the Branch/Liaison Office/s with PAN No. ___________ of M/s. ______________(UIN- ) has/ have undertaken only those activities that have been specifically permitted by the Reserve Bank vide its approval letter/s No/s.____________dated______ and has/have complied with the terms and conditions specified in the above mentioned letter/s. (Signature of the Auditor/s) (Name of the Chartered Accountant) ICAI Membership No.:
CORRECTION REGARDING SUBMISSION OF FNC 1.
The application in form FNC by the foreign entity (other than those engaged in insurance and banking) for opening of BO / LO in India should be routed through a designated AD Category – I bank. The designated AD Category – I bank is required to forward the application/s, along with the relevant documents and their comments / recommendations, to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, Foreign Investment Division, Central Office, Mumbai- 400 001. The designated AD Category – I bank should exercise due diligence in respect of the applicant’s background, antecedents of the promoter, nature and location of activity, sources of funds, etc. and also ensure compliance with the KYC norms before forwarding the application together with their comments/ recommendations to the Reserve Bank.
03 January 2010
Once again i m very thankful to you by deep of my heart. please provide me your email address for get in touch with you. my email id is msmaccounting@in.com
09 January 2010
Respected. We require close the liaison office. please provide the procedure. which type of NOC required from Income Tax Department.(because we dont have any tax liabilities except tds deduction, which we paid allready). and from where we take this NOC?
10 January 2010
PLEASE GO THROUGH RBI/2009-2010/279 A. P. (DIR Series) Circular No.24 December 30, 2009 THE POWER IS DELEGATED TO BANK.
The form FNC by the foreign entity (other than those engaged in insurance and banking) for opening of BO / LO in India should be routed through a designated AD Category - I bank.
iii) Closure of Branch / Liaison Office/s With effect from July 01, 2008, the work related to closure of Branch / Liaison Offices, hitherto being done by the Reserve Bank (Central Office in the case of Branch Offices and Regional Office in the case of Liaison Offices), will be handled by the designated AD Category - I bank. The closure formalities shall be dealt with in accordance with Regulation 6 (1) (iii) of Notification No. FEMA 13/2000-RB dated May 3, 2000. In terms of the aforementioned Regulation, following documents are required to be obtained by the designated AD Category – I bank :
FURTHER IT IS STATED AS :-
c) No-objection / Tax Clearance Certificate from Income-Tax authority for the remittance/s or an undertaking from the applicant and a certificate from a Chartered Accountant as mentioned in A. P. (DIR Series) Circular No. 56 dated November 26, 2002.
09 April 2010
Respected, We have a partnership hospital with 5 partners. Now we want dissolve the firm and sale it to some other person. He agree to take over full hospital. So please advise how can we settle all the formalties. Should i have to dissolved tha partnership or we have to make a MOU between them. If MOU make what is the language of that or how is the procedure of MOU. Please provide that on urgent basis. Hospital has liability as well as fixed assets. and running from 5 years.
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