Moonlight Inc., a USA-incorporated company, has a branch office in Surat, India, and the company intends to close it. Advise on the procedure for closing the branch office in India, including necessary legal and regulato

Closure of BO/PO/LO Requests for closure of the BO / LO/ PO and allowing the remittance of winding up proceeds of BO/LO/PO may be submitted to the designated AD Category - I bank by the BO/LO/PO or their nodal office, as the case may be. The application for winding up may be submitted along with the following documents: Copy of the Reserve Bank's/AD Category-l bank's approval for establishing the BO/LO/PO. Auditor's certificate: 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; confirming that all liabilities in India including arrears of gratuity and other benefits to employees, etc. of the office have been either fully met or adequately provided for; and confirming that no income accruing from sources outside India (including proceeds of exports) has remained unrepatriated to India. Confirmation from the applicant/parent company that no legal proceedings in any Court in India are pending against the BO / LO/PO and there is no legal impediment to the remittance. A report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 2013, in case of winding up of the BO /LO in India, wherever applicable. The designated AD Category - I bank has to ensure that the BO / LO/ PO had filed their respective AACs. Any other document/s, specified by the Reserve Bank of India / AD Category- I bank while granting approval. Remittance of winding up proceeds: A designated AD Category-l 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. Accordingly, Moonlight Inc., a USA-incorporated company, is advised.