A Branch Office can be established by a body incorporated outside India, including a firm or association of persons, involved in manufacturing or trading activities. The permission to set-up a Branch Office has to be obt
CS Executive · Setting up of Business Entities and Closure · PYQS · December 2020
A Branch Office can be established by a body incorporated outside India, including a firm or association of persons, involved in manufacturing or trading activities. The permission to set-up a Branch Office has to be obtained from the RBI under the FEMA, 1999 provisions. In light of the RBI Master Circular of 2016, highlight the activities which are permitted by the RBI.
Answer & Explanation:
Permitted Activities for a branch office by the Reserve Bank of India are as under: Export/Import of goods Rendering professional or consultancy services Carrying out research work, in areas in which the parent company is engaged. Promoting technical or financial collaborations between Indian companies and parent or overseas group company Representing the parent company in India and acting as buying / selling agent in India Rendering services in information technology and development of software in India Rendering technical support to the products supplied by parent / group companies Foreign airline / shipping company.
Topics: Foreign Collaborations and Investments
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