Taxmann's FEMA Practice Manual

Page 1




Foreword

STESYE AYSS I N L E A R A H E L H I NA T TGAEEWTY S C H N EU I O I R ET T T ED EF DN R T E L I S R T T L A AA V YN EA N N G L R SG G L NH U UOEA WA A I CS O S O RI HSO C I D FACTHIC T N M E YRFNOSCE H MEG)EAAM!AT L S N OWIAGGAT NN Y T N S L N I NOOL I D E A % I P OP'E T V G A I & D CC WRR N R S A EI EI ECI E SD P LMIA MN DS A M SN OD NL BO E AESN OI A A P A N ONOI O N T S I R S L I OATE CO G T KDI U I C % CNI R S T E E E E NAD! N ) S R N L HE S A T E ) GNOHU T N R H T G CNGT I O I P I E E HI E T G 7 E S E V R T MT R N I R S R R OI NIEN E T WE S FRYISGEN L N T AME Y MHET D E T N O N V E TH MN I ENS ROIET OAEBGIA MAE T C ZT NEHRSI VD I F T O N S OD L N F E O F N I CA SOEAEGD I R A V ER D T N E E D NA T C I NN BI T NI NTNI AA ARAN LFHUE S E A I UNYEOCOM DI D X B A H L T T NRDR % T N R T W O N ) U N T O O D ONO EN R EB)PRD L I FG V A E S P HS D I A NODUY T E NN O I RR DR T E FR H OP EOAS E O C#K B MT DS & N D O RSE E NE NNEA K S OII GNDEUI N I E MOAOEHOS L C T 4 C R S BU NE LC A SA E N A R E A Y R D B E R I I G R L R M P E R E L EC T R T N L V T M ONSA I N E N E N IB S US I WUURE I LOET NDOG E RA E O N F CA T E HAIN N N MTT T OR A ET A EADNNNOH A E EMG E I I NSE R EITC D R N A O E E G N B E L I D N G H N T S I T Y ) T EE F L I SY P A L I AA G HH I TH H L A ER W! 4PS TPHBL LF A O NE RC E T N X A EN E GT NN I I T A A T M I L I C D AN F A FT O N EE VM I T P C O EL J E B V OE ED HY T L R HE T I D WR EO GE NH AT HG CN XI ET O NM A GO I I E D R R PN OR ) F N OI OF T T DE GN K NA I R T SA A T L M E N R EE TMG C N YA !A H NPC A X D SNE I A N ! G E I -D E R AO %R &T F NLFTSS A A O E WC I E N Y I N R OT O T A G I NCI T KAXSPC E R A A L LP HMS L P O E N KC FMO WO A O R A CONT A S B L R D IA SA S D I I N N N E H ) O NYAT I ALEEDA T G HA N V N N SR A E R AI UE L L E HVRE A T "EEBNI N S D O ) I I N T H ' R WE I A T T N AIEN S I HWHN T E L DTTAU R T E UC MMT N EE 3J N L I F S U YBE FON L U L R G SP A A NSS E NEO I VA N OH I T ST T AU H R R E E O E CH N HME PO DDXW WTE NEE ORL N NEBADO E N P A KX L AY N P )EE N M S A L MNSIA O OAASNT H HAOK D S N I I WN S I O H S S O E KA4N F B OT OO A I ONE E RH T ARC BT PT A A SN S SD I SN UI T H N N O T A EE CHR T FC T DM O NR UM R!IET ODEDSO C R HE R C NO T OE RE BF U E R I AT R SE) R E S U EAP D OA L HHX N RV 4#E A C H T A N I P O ' A L A M A Y H 3

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A I D N ) F O K N A " E V R E S E 2

I-5


About the Author

S D RNR EAE I A I U D R A L DF E NA F T ) 6N! R A F AO DAE HS T EI #E A R DR I E NO R T FA ) S O P TI FR G E EOO ER T D# C 2 UE RF AA T3 O I T YDOY S N " R NNA T A ) Y LC S PA I FM N NTI O OPOI U R# S R S E K H FE BO T NI FA M O W E R T EU 0"D MI E T NDR N T O E AT S SN I T I S YI U N)LCG ADONE HNSER V SAEL R O UA2O I T Y S HD C C N NN ") E ) R E I FV HD 'OL T T SOIN ATSWE N N HA DD ) EN DT UNNRE 3UAEP T S O I S E I CE D G S CHE N -! 3R) SI X DDEN ENHO T T A3IA E C) TS U A2K L D F O I .N3 N T A A L U A" D O MDFR E OOPI T ARTNM A O O I I S"LR , L HU FT A !NOI OKWH! I NDT* S S AE I' E "L LW) F O OER$ RT N O D 0R A T E C T OPE TS I R IMRM E PVEII XDS$, AAITLD T 4SDNA, N N I E O FEADI S O L N T H S A NEAC R3O N P I E R I E M DY T E DT NNAN E NH UAR) E ) OPP E# NC &MO D OOLAIN #CAYOA H N L T # S SGON N R I I I T E E D S LASE AT I L HUNETI I R R S T DN E P MR T UO E I& N S, 3C I I

= ! % & ; T C ! T N E M E G A N AS E -D EA GC NE AD H C XN %A H NT GE I E R R OO &M R DO NF AA YE CR I A L O E 0H )T $N &I G AN I D I K NR ) NO I TW R N E E PE XB EE NV AA SH I ED HN 3A N O I T A X A 4 L A N O I T A N R E T N ) D N A ! % & ) $ & E H T N O S K O O B G N I W O L L O F D E R O H T U A S A H E H 3 ( # # Y B D E H S I L B U P W E I V E R E V I S N E H E R P M O C ! n S N O I T C A S N A R 4 L A N O I T A N R E T N )

D E H S I L B U P S E M U L O V O W T N I T N E M E G A N A E G N A H C X % N G I E R O & O T E D I U ' E V I S N E H E( R P# M# OY #B

S R E T L O 7 A ( # # Y B D E H S I L B U P T N E M E G A N A E G N A H C X % N G I E R O & O T Y N EA DP I U M 'O LC A R CE I T W C U AL R 0+

F O E T U T I T S N ) Y B D E H S I L B U P A I D N ) N I T N E M T S E V N ) T C E R I A $D I NN G) I F E O R S OT &N A FT O N SU T O C EC PC S! A D LE A R CE I T T R C A AH R 0#

S E I R A T E R C E 3 Y N A P M O # F O E T U T I T S N ) F O N O I T A C I L B U 0 N O I T A X A 4 L A N O I T A N R E T N ) N O K O OA I BD DN N) AF (O

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SYXN RNA E REO A HI LOLT I P L D T E DN A A MI L E) WU R OT T R NSGCA A E A A FP T S E SROR O5 DN ET NI H OX 3N3AT A 0 UT E H X S CS SA MTE EW T DT XA RN A I GEL F R N X E OI LAP A RHE T E NMR R ORODNO I I C NI & F T E E A S D L 2O NGE N N C R RI U E TIS LO V L T U DNAR N I O S ) A A C I U HN T G E C R T N IOHA C I W#3S V L N NAO GA YADV NM R NT EE I Y A K R A E RRPT L S OEMA P E W'OC U IDS EA#R N S VO TAI N H I T G S SINN N I E D F R I EE EV ) O T S L V X NTR O EOA OEV N YMFLVI B ONOS DN ISN E A M S EH O REHI NT I A T T E I C I E A H GR A T GT NOSS I I H SO N SA I LKTE U N EE R CT C AAI L N$B VA EH TRN N T E I T N R S E I O E E I T PW MYA R M N XRT O N R EE S S R E I REEV E V R V E T ODN A NG (C AI I

I-7


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I-8

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L SA NN OO I T I I G N GE O2 CA EI R D N D) NN AR E SH DT RR A WO A. YY NB Av M D E D R A W A N E E B S A H E H S E E F T I U L T I R T E S H N T ) U ! O H # G F U O O R # H 2 T ) h. RG A N L L I I O C D HU N CL U S CO N# !I Women Empowerment through CA Profession

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Preface to Second Edition The law relating to foreign exchange is of great importance to any country. The Foreign Exchange Policy decisions are based on a detailed assessment of the global and domestic macroeconomic situation. As the economy grows the growth needs of the industry increases however, there have to be a balance between the growth of the country and the industrial growth, both has to go hand in hands and where both supplements each other. Therefore, the monetary policy has to achieve dual goal of development as well as regulation. Monetary Policies of Reserve Bank of India along with Fiscal policy of Government play a very crucial role in overall progress of economy. Number of measures taken by the Government along with RBI to put in place an enabling investor friendly FDI Policy has resulted in increased FDI inflows setting up new records. As per Economic Survey 2021-22, FDI inflows in India stood at US $ 45.14 billion in 201415 and have continuously increased since then. India registered its highest ever annual FDI inflow of US$ 81.97 billion in the 2020-21 reflecting a growth of 10 per cent as compared to the previous year. Over the last seven financial years (201421), India received FDI inflow worth US$ 440.27 billion which is nearly 58 per cent of the FDI received by the country in the last 21 years (US$ 763.83 billion). Several initiatives have been taken by the Government since April 2020 to further reform the FDI policy framework to ensure against opportunistic takeovers and acquisitions while also facilitating an increased flow of long-term capital, global technology, processes and international best practices to support the growth of these sectors. According to the World Investment Report 2021 by the UN Conference on Trade and Development (UNCTAD), India was the fifth-largest recipient of Foreign Direct Investment (FDI) in 2020 improving its rank by four places, from ninth position in 2019. While RBI (alongwith Central Government) is primary authority effectively manage, regulate and govern the Foreign Exchange, the implementation is mostly left to be ensured by Banks and professionals like Chartered Accountants, Company Secretaries and Cost Accountants through various certification requirements from these professionals, who are fully equipped to understand the intricacies of law and can guide the companies in effective compliance of Law. This Book is one place solution to all the needs of professionals and the AD banks for effective management and execution of Foreign Exchange law in India. The book deals in great details about Foreign Exchange Management Act, 1999 (‘FEMA’) being the major law regulating foreign Exchange. The book provides the comprehensive commentary on various Sections, Rules, Regulations under FEMA I-9


. / ) 4 ) $ % $ . / # % 3 / 4 % # ! & % 2 0

I-10

and is complete guide to various provisions with regard to Foreign Investment. It has been presented in the manner which is easy to understand and practical to use. The concepts like Residential Status, Capital and Current Account transactions etc. which are very necessary to be appreciated in totality to have understanding regarding the Act are discussed along with the glossary of terms under FEMA in the beginning. The book contains entity wise bifurcation of various provision under FEMA. For e.g. All the provisions which are applicable to NRI under FEMA are referred to under Chapter 17, Division 2 deals with Company. In Chapter 18 the various provisions relating to transactions/investment by resident individuals are discussed. The Schemes of investment by Foreign Portfolio Investors have been discussed in Chapter 19. Provisions relating to various Investment vehicles along with Foreign venture capital investor have been discussed in detail in Chapter 20. Unincorporated ways of investment in India have been discussed in Chapter 21 and overseas investment by Indian party has been discussed in Chapter 23. The provision relating to appeal and adjudication have been discussed in Chapter 24 and practical aspects of compounding have been elaborately by taking example from the few major big size FEMA contraventions have been discussed in Chapter 25. Chapter 22 deals with Limited Liability Partnerships. Every attempt has been made to keep the complex law simple. Pictorial representation, checklist, examples, case studies, compounding orders, have been provided for ready reference. Hope this book is useful to you. Thanks for your appreciation for the earlier versions of this book and the other books. Please give your kind feedback on how the book can be more useful to you. Willing to receive your feedback and questions. Yours Sincerely, CA. Sudha G. Bhushan sudha@taxpertpro.com || 09769033172 March 2022|| Mumbai Stay updated and connected N A H S U H B G A H D U S A C N I M O C NN AI HD SE UK N I AH L H"N D I U' SA ? HS AD P CU T T 3H


Acknowledgement

YD AN NA I E 6V O ! L #E C DN NA AD BI SU UG HS GU NO I U R N I P I T SN NO I C DS NI AH R GO NF I V S L OA L N YO I MS S OE T F O SR K0 NT AR HE T P GX I A B 4 YD R E A VE Y( MX A E4 CT AC L E P R I OD T N E) KN I L T AR DHO L SP U U P OH U 7" S Acknowledge the presence of my mother Lt. Smt. Satyabhama Gupta through almighty who is there in everything I do and who is my Role Model.

R O F D N A T N E M E G A R U O C N E S S E L D N E S I H R O F A T P U ' 0 * I R H 3 R E H T A F G N I V O L YE MM N OI T G TN C I EV PI E SL E E 2B EN MV E IE AT R DU ACH S -EI X H .S % T Y S A X R A N%W I P L G DA OR NS 'A G A'AN L I R#S A S MA-E AM)L YUTB H ND + 3 EN D K O I A S S R E -HEC S R !0N OI A T RL AD TH I C E3AU P WG I SI AK D E N DAI R DNRK N)OR AFHE I EO+H DKRT AR UNZ A T O I UF "* T A E R 7 VR G R, TE L E S F E A# T 2DR A O) EFR T HOA N YR"E O MN FI D EROE S CEKR AVN O L 0 P 'A A O "L Y T F A T EU O W KP RK I I L EO D$ TA L C R U EO TR S OA IH 7P $+

T R E P X A 4 T A M A E T C I M A N Y DH DA NH A3 DT I EK T N N ! E L A ! T H# CD UN MA I FR O A NW OI I 4 T A A CY I D E ER DH E3 HS T ET R A I A C L EU R C PI T PR AA DP NN AI EL S GA DN EO L I WS S OE NF KO CR !0 N A H S U H " H S N A D E 6 D N A N A H S U H " I H D I V U 3 n S D I K Y M F O E V O L E H T E G D E L W O N K C !

K O O B S I H T T U O G N I G N I R B R O F M A E T L A I R O T I D % R I E H T D N A . . ! 8 ! 4 O T S K N A H T L A I C E P 3

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Contents

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! % & D N A ! 2 % & N E E W T E B S E C N E R E F F I D D N A S E I T I R A L I M I 3

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L A T I P A # D N A T N E R R U # N O E C N A D I U G R O F S R E N WO I ST NC !A S DN A NR A4 NT ON I U T S O E C UC 1!

ANNEXURE 2 :

O T S U T A T 3 Y C N E D I S E 2 T N E N A M R E 0 F O T N A R G SS E R VO OS T RE PV PN A) TN E G NI I E B R AO #&

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123 ANNEXURE 1 :

120

114 2.5

105 2.3

T C ! T N E M E G A N A E G N A H C X % N G I E R O & n D N U O R G K C A B L A C I R O T S I (

106 2.4

64 2.2

3 1.2

64 2.1

4 1.3

1 1.1

Foreword

I-5

About the Author

I-7

Preface to Second Edition

I-9

Acknowledgement

I-11

Chapter-Heads

I-13

1

INTRODUCTION TO FOREIGN EXCHANGE MANAGEMENT ACT, 1999

2

CONCEPTUALISATION UNDER FEMA


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T N E M T S E V N I N G I E R O &

T N E M T S E V N I F O S E L U D E H C 3

T N E M T S E V N I F O E R U D E C O R 0

T N E M Y A P F O R E N N A -

N O I T A R E D I S N O #

T N E M T S E V N I F O E D O -

S E N I L E D I U G G N I C I R 0

S U L P R U S D N A E V R E S E 2

S E R A H S E C N E R E F E R P E L B I T R E V N O C Y L I R O T A D N A -

S E R A H S D I A P Y L T R A P D N A S T N A R R A 7

T A M R O & R E T T E , L A V O R P P !

S EN F I O , I T NA I C TF I N I ED MO TM S E R VE NH I TY NOC GDI I L E NO R OA0 F ) G#$ ) & N, I T G T AI N I I MD T S RN I E )X PF E ROE ONH F T OF YI CT O I A L R Y O T O 0P I R )R A L $OC &#R FEE O CH NR T WA U ER I UF V SR EN O 2) F

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" # % H G U O R H T S N A O L G N I S I A R R O F K R O W E M A R &

S N O I T A S N E P S I D L A I C E P 3 S R E W O R R O B E L B I G I L %

R E D N E L D E S I N G O C E 2

200

5.7

192

5.5

N O I T A L U G E 2 G N I N R E V O '

196

5.6

190

5.4

E G N A H C X % N G I E R O & R E D N U N O I T C A S N A R T E H T E T A U L A V E O T H C A O R PT PC A! TT E EN HE SM EE CG NA AN L A A "-

ANNEXURE 2 :

188

5.3

N O I T C U D O R T N )

187 5.2

182

ANNEXURE 1 :

187 5.1

179

176 4.10

164 4.8

176 4.11

171 4.9

162 4.7

158 4.5

137 4.3

160 4.6

143 4.4

130 4.2

124 3.2

129 4.1

124 3.1

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3

BALANCE SHEET APPROACH TO EVALUATE TRANSACTION UNDER FEMA

4

SHARE CAPITAL

5

EXTERNAL COMMERCIAL BORROWING


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D O I R E P Y T I R U T A M E G A R E V A M U M I N I E S U D N %

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S D E E C O R P " # % F O G N I K R A 0

S E S A C " # % H T I W L A E D O T S K N A B ) Y R O G E T A C $ ! O T D E T A G E L E D S R E W O 0 S N O I T A L U G E R " # % E H T H T I W E C N A I L P M O #

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216

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R O B I , F O L L A & S U O I R O L G N ) E H 4

T I D E R C E D A R 4

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E D A R T G N I T N A H C R E -

" # # & D N O " E L B I T R E V N O # Y C N E R R U # N G I E R O &

S D N O B E L B A E G N A H C X E Y C N E R R U C N G I E R O &

S I S A B N O I T A I R T A P E R N O N N O S T I S O P E D F O E C N A T P E C C !

E D I S T U O T N E D I S E R N O S R E P A M O R F S E I N A P M O C NR O AT I C D E NR I I YD BS SA T I N S OO PI T EA DN I FM O EO CN NR AO T F P A EI CD CN !I S I S A B N O I T A I R T A P E R N O S T I S O P E D F O E C N A T P E C C !

239

8.3

238

8.2

237 8.1

235 7.2

226 6.2

235 7.1

232 6.3

222 6.1

218 ANNEXURE 1 :

217 5.18

216 5.16

212 5.14

vis-a-vis

5.17

215 5.15

211 5.13

208 5.11

205 5.9

211 5.12

207 5.10

205 5.8

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6

TRADE CREDIT AND IMPORT

7

FOREIGN CURRENCY CONVERTIBLE BONDS (FCCBs) AND FOREIGN CURRENCY EXCHANGEABLE BONDS

8

ACCEPTANCE OF DEPOSITS


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R E T R O P X E F O S N O I T A G I L B /

S M O T S U C F O E N O Z D E I F I T O NY LT A I L I A C EM PR SO MF O& R$ F S D% N OM R MO A& I D N O HI GT A UR OA RL C DE L O S$ NR T UO FP O X T% R OT PU XO EH T EI 2W N O I T A R A L C E D M O R F N O I T P M E X %

S E C I V R E S E R A W T F O S S D O O G F O T R O P X E F O S D E E C O R P F O N O I T A I R T A P E R D N A N O I T A S I L A E 2 E G N A H C X E N G I E R O F F O N O I T A I R T A P E R F O R E N N A -

S N O I T C A S N A R T T R O P M I T R O P X E R O F S T N E M Y A P Y T R A P D R I H 4 C T E E R I H E S A E L N O S D O O G F O T R O P X %

S T R O P X E T S N I A G A E C N A V D A F O T P I E C E 2

E C N A V D A T R O P X E M R E T G N O ,

E R U T C A F U N A M O T R A E Y E N O N A H T E R O M E K A T D L U O W H C I H W S D O O G F O P I TH R OS PD XN %A S D E E C O R P T R O P X E F O D N U F E 2

S L L I B T R O P X E D E S I L A E R N U F O F F O E T I R 7

F F O E T I R W R O F S N O I T I D N O #

L A V O R P P A ) " 2 S T I M I L E V O B A Y N A R E D N U D E R E V O C T O N S E S A #

ET Y CI NR AO R H UT SU N! I T EN T E A VM I P R PL O E DV NE A$ #D 'N #A %Y R YO T BA L SU MG IE A L 2 C E FC O N TA N R EU S MN Y) AY PB FD O E T SA E L S U A G CE R NS I E FI F N O A EP! T $ I M R 2 7O ) C

N O I T A X A L E R F F O E T I R 7

E C I O V N I T R O P X E F O E U L A V N I N O I T C U D E 2

S L L I B E C N A S U F O T N E M Y A P E R P F O T N U O C C A N /

S E L B A Y A P T R O P M I T S N I A G A S E L B A V I E C E R T R O P X E F O F F O T E 3

L A I C E P 3 N I S T I N U n S T N E M Y A P T R O P M I T S N I A G A S E L B A V I E CS E: R T% R 3 O PS XE EN FO O : FC F O I M GO NN I T O T E C .% S E S A C R E H T O N )

T N E M E G N A R R A E D A R T R E T N U O #

S T R O P X E E C I V R E S D N A S T R O P X E T C E J O R 0

S T R O P X E F O E R U D E C O R 0

R E T R O P X E E R A W T F O S Y B N O I T A G I L B /

258

9.27

255

9.25

N O I T A L U G E R G N I N R E V O '

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252 9.20

253 9.22

253 9.21

252 9.19

252 9.17

250 9.15

252 9.18

252 9.16

249 9.14

248 9.12

248 9.13

247 9.11

246 9.9

245 9.7

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260 9.29

260 9.32

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373 18.10

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PENALTY, APPEAL AND ADJUDICATION


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ANNEXURE VIII :

ANNEXURE IX

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ANNEXURE X

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ANNEXURE XI

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PART IV

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S E I T I L I C A & E C N A T T I M E 2

PART III

597

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:

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PART II

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650

:

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-

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PART I

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580 25.5

575 25.3

581 25.6

576 25.4

574 25.2

566 24.5

573 25.1

568 24.6

564 24.4

I-26

25

COMPOUNDING UNDER FEMA

APPENDICES


3 4 . % 4 . / #

I-27

% ' ! 0

PART XII

:

) ) Y R O G E T A # $ ! S A S # & " . F O G N I S N E C I , :

G N I D N U O P M O #

PART XI

S E E T N A R A U '

740

:

E D A R 4

733

PART X

) $ / T N E M T S E V N ) T C E R I $ S A E S R E V / :

Y T R E P O R 0 E L B A V O M M )

PART VII

S T N U O C C ! N G I E R O & T N E D I S E R N O . :

731

:

686

PART VI

712 PART IX

681

:

" # % G N I W O R R O " L A I C R E M M O # L A N R E T X %

689 PART VIII :

664 PART V


SAMPLE CHAPTER

CHAPTER

TY N R T EN MU NO OC RW I V E NN EY SN S A E F NO I S R UE BC N EE HU T m KN CI EC HI CM OO T N EO KC I E L D DN L U A OL A WI C YO R SF OT O T I C R UY R E DA T OW WRY EPB NSR T I E OF T T O N N YE I T I N GL A NI B I C R AY E T T P N N EA EC P CM EA R ODO F NC E A N BT G I YE E T KR I RO T A N E F M NEA L GB A I I E AD R L N OI ) A F VN !A ) E C I F F / N O S I A I ,

S E I T I T N E D E T A R O P R O C N I N 5

S E I T I T N E D E T A R O P R O C N )

S 0 , ,

Y N A P M O C D E N W O Y L L O H 7

E R U T N E 6 T N I O *

E C I F F / T C E J O R 0

E C I F F / H C N A R "

LIAISON OFFICE/BRANCH OFFICE/PROJECT OFFICE

21

21.1 INTRODUCTION

L/ A I "D T I N YE I Bl I E C N HE E T P K EA S VT T AR O HE DN ON S T I SUH R EC OB I T H S NW E VAY NCT I T I V NAI H GT T I C E S A R E OI R T F E I H V OI T T TO WCY OAN DEA NHE 4 I W K AT A EI R DDE I N V O)D RNN PIU T T N O /E N " N MA ENC COY R lV I E F H /NT HED CSN NSA AED N R I S E "U l D C I NBE AEP H T S /F E ,O R A EGM N CI lD E F H /NT A T NS / R OE , SD I D A NN I , UA

E C l F O T C E J O R P F O E F I L D N A T C E J O R P F O N O I T U C E X E F O E S O P R U P D E T I M I L AT C RE OJ F O DR EP NF EO PE OR SU I N /E T 0E H ET CO lT F D O E TT C I EM J I O L RS 0I D E T A L U G E R S I D N A A I D N ) N I Y N A P M O C N G I E R O F F O S S E N I S U B F! O EC% A& L P R DE ED T N A U R OL PL RE OW CS NA I T N C U! ES R E A I N /A 0P DM NO A# /E "H T /Y ,B

21.2 REGULATION OF LO, BO AND PO

/GFY O T N I "I T S E IN /BSEA I ,SA D E B E HN I OT ET T IH ) T TFN NN O OE NHI I O D T D C A E EEAH L T T E E S A A R I RL I R T O NO B N F I A PE T S WRR S N O E OC OE F L F I S NI E S I I D I BN T V I UTO H OR C ENPI HSTH T TLENW O L E C R R !ADE O TTF F SC C F E !I ! Y I D T N I E V E ASH E R I I PN TE T C MA SHA OPAWF #MN!O O S EOI I H-S H#S T %A E A FH &B F O E STEEH K R M NE I LT OD AN N I NS5O S I 5E D V O HD T E E RG l NHI PNI I S C ED I DB E L HN E P T AT AS DTAT E ESLSR R U E S E GSA S UDEI / T0 CNRI U S EH I R R D D CN A E I T YT /HA mE 0W/ EB I R RDR" O BO N EFAF/ E V , S A//O G H0"P N D/R I EN UE 7A ,PB

450


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Para 21.3 451

T H R L E T A I T EP W DA D HA #E SR N S T TON I C T E C !E M SS E E ER I S I N E U AH Q PT E MOR OTD #GN N A I ED S HN N T FOO I P O T S C E E RS RL O O#AS N T O E A L I I T U D I N 2 D S)DS NNAE I OS HN I I T T S I C A E WP EN 3S I M U O B # FT N O G ECE I C!R ASO L E& P I ANF GAO P NM N I V O I AOT H#A R SI NT E S I I D N G E AC E PU 2 MD S OOE RI CT N NN A GI I SP E A M R OWO F # ) H) T 8E I H W8T 21.2.1 Regulation under the Companies Act, 2013 Provisions under the Companies Act, 1956:

AMHH T TI NRI I OWW H &DE T I C WRNN A AA R LT L D S A R I HG O SE C R C /EE SA 0HL N RTUI OT H2Y N /I SA "WE P L EEM & /l O , DC AN HI N A GD G UNSI E E O)C R RNl O HI FF T S /A S YE N Y NN OB AII PST N U A MB O R I T OFS T A CO I R G NEE T S GC I 2G I A E L E R OPSR E S F R I T O I N !F AF OP D TME N R EOES F M#VO I L NE HI SD D I L E E B N DBO AI T I VOT S E OTC RDE EP ES HS R T I B FAUU O QS EE ER SF F Y O AHSS DCTN N UEO SMI S HU I FT V O IC O DWOR O DP I R E E #H E H P&T T Registration under Companies Act, 2013:

E B L L A H S N O I T A C I L P P A E V O B A E H 4

N A H T I W D E T R O P P U S

YD BE S I DR EO R H I T U QU EA R E H ST I LM A VO OR RF P PN O AI T D A E YR R NA I U AL C Q FE I E D R SAS R I RL OO T A A AV L I O U R GDP N E) P R N A RI E H SC HS T EU O N S I O MS U N OB RF T F A O H OE T SC L Y A AN DLA NPP AAM HO SI SC NL OB N I AG T T I A S E L E R U GOO ETF H 2YC RNU A OP S F MO OE CV I NT GA I T E N R E OS F E HR CP UE SR Application for registration to be supported by approval from RBI: attested copy of approval from the Reserve Bank of India under Foreign Exchange Management Act

LA DL EA N R HI E S H VY T I I L N W E DA N TPO M N I EOT A MCR UNT E CG L OI A E D DR EE R EOHR HFTU T FC E NHOC I T S O S R R A R L U U O C C E CNI D TA OO R RT I A OC PM S EEEA DSH W AFT MOGN NO S I I I NA T N IR N A OO T E I IN T T T L A OA C R ECE E S T H L B#T A H YU&C NSMI R AE RH ED OW R N&N E HUNO 7NIE N OR T I A T U D A T R E E T R H S I AT G ERM R A O RR R F OT S F S I G Y RE A A R 2D T S E I H G ETF 2HO TD EI O HWI T R E E LP Ol T Alteration in the information:

RD EA R E A ER PNT E ESR R A PAH LR# L O A H) )G S) N I S EI AL I T UC D NDA ) ER NHP I CA /3Y 0HB RTD OIE W T /EI D "C NU /AA DM ,R E HO H GCT UCT OAE RNG HI T D TSN N N A O EI R S T A E A E R R PE Y L A YPI NOC ASN PSA E NN MI l OS CUH NBC A G E N I AR E I R O ODF N F ) E YS L R B TI E VIS F S %O OA TPI N D EEN B ) MY EA N T I A MT T N S SA LAT A N O I U T C NEO R AE C C NH ! lT Accounts and Audit:

H E GMT URA OOD R&E HNH T T I T N T N O N EE S S E MA R E A PT I D A YT N NS ) AA LN PI I MC Y ONN CAA NNP GlM I EO E HC R OTN F HG YTE I I R WR E O VGF %N E OH L T A Y RB A R D T E S I H G S EL I 2B A ET S HE T S HS T E I WI N S EU L l B LF L O A HS SE C A AL I P D NE ) H T NL T I E LE /AH FS 0O R E OTC S I N /LA L "AA B /# F ,&O Filing of financial statement and list of place of business:

T ) RYL S G N A N R " OAL NE I EII D T EWE Y W2N MN C W R OE)lYS EER GMAPHNFBA A C TIO NH E /HD2 R H E S I AL OT ,CU N S -BFF EA S AAO H I R ! ETI E T T B GSD C G I NENS A % AE)C!NF T & HTERTI O E A N A @ CL DX ASS L I XU EEE I N S A %G T NMRDOD N I S E T NEU)G ) N E A GROS R N O A L T I R S R I I U E NS ONE E TG R IN F O ENAV E D E T I E O &I S I C R S U RM2 E E ER P B T G S H R HS S FNESE T N E I FR OOAHLN T B H O E S I E A S C TR CX T B I T U EA S A PL B %L NI % OHAPNU FH I G O R T O TR C GE YE N C R I EA RE HE EPBT S S ROMCO A T O S FNE ELD R O P N O G I NO&O T E R E A I I A L T EH S T NEA C U A H T A U D l T B NG FC-O F l OE O FO I I O R T EY T O C GN EHNN EYC NA C B S O FAR" ANI O H B LAT O2 CE UYPRCYX SARBEA C S E RMH HF W%l2 E F C N T O Y PKO O U G N B I T SA RS N E C !" OO R E! O O ETNI J G E T&OOA CN I Vl % T LER& P I R F R C T U E O A A E A GS S L O E EN R. HESR R O 2C B O E U YS EN I ENT HT A C O I T HR A I V RD lT L T I BT E F U A ACDEGOC ANMENl F UAROI T ESO OY R N N A I S F A I A ES . E TD I VA HL C NI F NO !) GH4AO

21.2.2 Regulation under FEMA

Governing Regulation

G N I N R E V O G ! % & R E D N U S N O I S I V O R P S U O I R A V E L HI T A TT U E OD BN AI DA I ED S S N U) CN S I I D S E EI T VI AT HN EE WN G SI E HR PO AF R D G E AT R A A R PO GP NR I O WC OI N L L N O U F EE HS T E NT H )

L DA NR I AT S SU S D E N NI I S UG BI N D EA HR T T DL NA I AC T R S R E E DM NM UO C DY NN AA EE R K OA L T P R XE ED ON T U YO L T I R D A E MT T II R PM R PE UP T TO E N S S EI CE lC F l O F EO VH I C T A U T 3 N E E S T E A R PM EI L R C T AN SE I M /T S ,E V NN !I

21.3 LIAISON OFFICE

Y A D E T A D " 2 ! % & O . N O I T A C l I T O . F O N O I S S E S R E P U S N I D E U S S )


T N A V E L E R S I G N I W O L L O F N O I T I N l E D E H T N )

S S E N I S U B F O E C A L P A

N O I T A C I N U M M O C F O L E N N A H C A S A T C A O T

S E I T I T N E D N A D E L L A C E M A N R E V E T A H W Y B R O E C I F F / D A E ( R O S S E N I S U B F O E C A L P L A P I C N I R P E H T NA EI ED WN T) E N BI

I D N I R O Y L T C E R I D Y T I V I T C A L A I R T S U D N I G N I D A R T L A I C R E M M O C Y N A E K A T R E D N U T O N S E O D D HN CA I H Y WL T TC U E BR

G N I K N A B L A M R O N H G U O R H T D A O R B A M O R F D E V I E C E R S E C N A T T I M E R D R A W N I F O T U O F L E S T I S NL I E A N T N N I A A H MC

T FN SNL S RE E E A SR NE T I I A S O P H UT GS BDU T EEOI HWRM T OHO T GL R NLRF A E I T T H Y O O T E I N MNE OSYO RIT P/IM V G F,IN T O C I AV YNL I A!A E WT CR I C E T YE R S BAU Y NIDA D NW ON I I T )G Y A N CI NB I I S N NDE UO AS IRN MT T A E L MR P A OOI X C CBR E FAE S L L T O MI O T MCME GO UN E I CM D I ETYO O NT MM AS AOEA ERKH KPAT T I L AR ) I TD E C Y DT NN A) I T UN ON T ITE D OR EYNE NNNH EAAT PPCO OM) TY O N SC I A A I TD /N H ,E N GY ) NRN U N A AP OA IR TH P SSl T UI OTM HF RRO 4O POC S ENT HI OC T U T MAD O OMR RRP F OS EFT GNI NID G AN N HI A T CC Y XE N EL A LP NO GC M I E OO R T C OD E F H ET FT O IT SMU E IO CLB NEA AR N T O T O F I I E T MR A EEM R H R DTO RSF I A N WSI G NEN C I l I HF D GO I V UHO OC R RU P HS T D YFN O L A E S S E R R E L I E T I O T N M I ERN O US TET T H E 4R U M OC APN EI PA BD OI NT O) D T EN EEK) D R R E I A A S V I /TMT U C ,OEE L B FEI P O CS S O lS SF OR E /PP S N TE EDU H PAOT XEB O %(AT

F AO I D R NE ) W NO I HP S E IH L B A4 T S D E E L KL NA AC "E EM VA R N E R S E E V 2E T EA HH T FW O LY A VB S OS RE PN S PI E AS S RUA OBC I N RFI POA TET U R CE OAC L HP T N I I WRR E HE L T LO K A H N SYA AN" A I D R$ NO ! ) E/O D0T I D S AE T T RA U OOG T/E N L E,E DND I AN S E E RE R NOB OHS SCA R N E AH PR ) O"" .A2

EF VO R R E O S T E C 2E ES HE T H HT T N I WO E DT NE OS U I T AO A "2 R T T N S S I NE G O EI M R T N A NR R I E EV A T PO B OO' F OO R T O SRC DOI T T EC A EE NS M O YET NH U AT PN! R MO E OTD CN N NEU GDR I N E E E R H P OE T I F E ADE S AI M I EO D NTC U ) ON NR A I EC /H / ,4 , NA N AI A GD NS N) I N N O EFT I POA OKR RNE OAP &"O

21.3.1 Routes for opening of LO/BO/PO

a

S/Y R A O,M T G C ENK I S N N A RE B E DP) NOY URR O O SFG L L NT E A OA F I T # YA T C$ I I T L ! N P EP E H NA4 GE I HE E T T R OEU L F O B R I ES C HI ST I T FMA M R O E S O SP R T S E U E S W NIAO I EP ) S H U$T D B&R E L ET T A D A PNN G I E E UL C MK NT E I R SND PE AR V"E EN D R ))N E HTYU R C 7EON G R O I E I $A T T A C NCI G$P L I E !P R OOA &TH C EU DS AR ME D EEI B R S E NN HA O WC C

S/ R O, T G C N EI S N EE HP T O RR E O DF NN UO I ST L A L A C I F L P YP T I A T N E EH T NE GT I E U R O OR F C EI T HA T FM O O T SU S A E NE I H S T UR BE LD A PN U I Y C E L NL N I B R O I PS S E T EI U R MO E RR HE L 7PA TV O O NR P SP I )A $R &E D N U E EB R L L E A HH WS

G N I W O L L O F E H T N I D E N R I A U T S Q I E K R A S 0 I A N I I D D N E ) T F A O R O K P N R A O " C E N I V R D E S E E R E 2 T S E I H G T E F R O S L I A R V O O F R O P P N A E Z R I O T I I R C 0 A S I T N A C I L P P A E H 4 S E S A C

Prior approval of RBI

a

2 ! % & F O E E S U A L C R E D N U D E N l E D S !

-

% # ) & & / 4 # % * / 2 0 % # ) & & / ( # . ! 2 " % # ) & & / . / 3 ) ! ) ,

D E V I E C E R S E C N A T T I M E R D R A W N I F O T U O F L E S T I S NL I E A N T N N I A A H MC G ON T I DK EN R A I U B QL EA R M SR I DO NN AH G YU L T O C R EH R T I D Y NN I A RP OM YO L T C C T EN R I E D R A YP T I V M I T O C R AF

452 Para 21.3

‘Liaison Office’ means a place of business to act as a channel of communication between the principal place of business or Head Office or by whatever name called and entities in India but which does not undertake any commercial/trading/industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.

(1) Automatic Route—

(2) Approval Route


% # ) & & / . / 3 ) ! ) ,

L L YTL YT CA DR !H OA S "PND ON NDI A OETT A G I L T C AU A G ! G S N I ED N E2 I AS A S GI R YNE /TOH I I T TN T T I U F R EB O E ID RHR 0CT UNN NS OU OF #N .I O I RNT E GA /V I R E 'ER T S .WOG I O&E N(RR O EF I TD T N A NO E S E I MUT N A ANDC E I GRR 2 F E R I E T /VV R TOOE G N CC ENSA! GI E MI N% T NE I I R A RO & V T E I T R B VFC E OD OAA FEL LN 'O NTHAU ONTHN S F .EO O YI AM ES S STYHI N R I T A A T M PN N R !E AEI C$Y 2P I L # L K P L &E PYO C E H AN S W EE T HG R O 4!O N EY S R E A S HS T E RC E E DN ND UE LN A I VA OT RB P O PS AA YH NY AN T AC EP R ! I M U N QOO I ECT R A HL TC U O UG NS E LI F2 L A HAG SIN D I NK A) I N D NA NI ) E" ECE I DF H I F T S O T F U O OYS N TAN N O G EN I S DI I I H V S SO E I R L R B P YA E NT H AST E PR R MO E OFD CSN GNU O L NI A T I K A V NLO U R AG P BE P !2A

LN EA S O V E I T O HR C T E P RP S E R DAE NDD UE N LI NU A VA OTD E RBH POS PSI AAL YHB A NYS T T AN C EAE! Y R PT I Y MI U T I Q RR O O EC HO R T H HU TC T O NU!U T! LSN L FE T A I N HA ME SI ADPM I NL OP D ) O EL NN VE ) I EV EE $E DC I I $ S D F T F ND U O A N OY TN YA N R Y EAOR T DGA O I T SNL A I U E L H R G U SE I G YL E 2 NB AAE2 PT E MSCC N E AN ORR A CO R EFUU CSSS NNNN AO)) E I R T H E UA T H SL T NU F M I G OO NER !2F b

C EFRNETEvEI N O N O ) C C D T L A O N N E L UA LD I CE A L EI A 4V S M C FS VERL EOOTEPEINO CRRNFP$MIT NPPAEA RTU EPPRRTFEOA G O N E A P F A N E T h E N Y E S H A R T R E E $O T D R M N T I O I S EEAS N RD YR B I P I E E L P MY N ER E T T I N MRNDSN-E E R E H AOO E AV N E M 4 H V NE N T T S OR L I R S SW' D A WG OI R E T A OOESC V TN N S Y T ( I A N C K R RHEE ) E E S E A A G T H R S H MTUC E T N O WT CF RI E ERNR UT EEAI ANI D S S L E OA DRN*$ E U F G F E CS D 5 E G A R N EDAE E D I R T G HAC2 N U OA I OQ T ON T AT E DR E C NRI Y O " G I R E NO T DRN 3 & S E T O N E I L S T LDR BICI S R I T N A A I I N A E D L R A L L F U L I CDO EB E A I TNQ-R R T NC U F H N I OE UE SE0T AI TRD/ T O N S CA E E A E 0 E I N IEC.LR L B B D A M P N R U AAO PRTEGNYEI L ) O B C F I ON AF D F NF A E NI NV T E EN O N $) O C L V H) L E T C A RFAO A T R DH OOYB EPNT FN SHOEN STNA O M SAATR ORNAE O E E N C Y I Y S T F H RAR D IT T BL MF E I E N A NR A F N N N V I S U)O S ODUROO O E Q E I UCFI T ' O P S D S E D V C B3 S S OFR AOI E I K R LE OAE'M P NMP A S LW(ERE PTARF A A I E O VAEHER C V"P ONCTPN NI E E I R L E I R I V N S V A E R I R P0RSAPERD E B P E C E E N T EMS S3ENU EEAA HOEC SEO RHRU HO IT 2L 4C O GR T RGN E RE GA A M N-N ADR E AV -S O LN A A' R 3E E N H E T 'TH T ENI HEW M T TN OR O T A I T KPA NEL T A$U BES N )GO N YA C R OHN GCI EXS T % N A O #NT I GA I $E C !R I L EOP H&P T LA L E YE H B#T DES S ECE DIC F F R/ O A R WA LP RR L OT L F NA EEH B#S O Y H AAW I D MN S) NF OO I T K A CN A I L "I H P P LA E E AV I $D R HE N W) CS UEEF 32.O a

F S !/D N A"L A KAS NG) AN R I ,N A B IE R O 3PC OI HR. SO D E FN DS A AI L N G N NI OA AT M "A A CD NL I I N P DP ! EA D T A EN R OHA PTN RDI O ONG CAE NUR I AS T DCA EA% R E H T RT S I OR G EGO R N. SOR I I R+M OGH FNS O OA N( E + Z AD I NN T I I A C H A#U SNM I TAM N RA A)* C N N I L AI P T / PS AI 0 N EA / HH 4G, d

-

c

-

b

Para 21.3 453

(3) No approval required in following cases:

Y L E T A I D E M3 M5 IN EA HH T T GS NS I E R L UT DO DN RF OO CH ET R KR CO A7 R T T GE N. I E K H AT MD TN l A OY RR PT EN VU AO HC DE L U M OO HH SE YH T I T T N N EI S NR GA I E E Y R OL F A I AC N /A ,N Fl O T NEN E OEL R I H T A A T V R I G T U NQ S I I G E D EE S R C T I RE OR R &P O

21.3.2 Eligibility Criteria

,

Net Worth is defined to be 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.

N A C S E I N A P M O C R E H T O F O ) SE E R I U R A X I E D N I S N B! UR SE EP R S A A DY NN AA AP I M R E O T I C R T C N YE T R I L A I P B I R G I I E L E H ET HM T O YF R F S T I R T A O S F TM O O N# OF DO R OE HT T WE S, T A N AT CI I M L P B PU !S

Where eligibility criteria is not satisfied

H C R A D E T A D O . R A L U C R I # S E I R E 3 2 ) $ 0 ! D N A Y R A U N A * D E T A D 2 ! % & O . N O I T A C l I T O .

D E T A D O . R A L U C R I # S E I R E 3 2 ) $ 0 ! D N A T S U G U ! D E T A D " 2 2 ! % & O . N OY I T R A A CU lR I T B O E .&


ENOE H GTT MI D E OR T EU CO T NF I O I M B YFIA NOL N SEO AE RT I NC OA RN F A AE M ET RR IEO TT O MHF NETN NR SI A I G CD N S R I DAED C I NWl V ANF O AIOR H I HP D GC DS NU ) OUNR NRSAE F H I SM E YTOT I O Y T EI T I L L S V NU E O I R RUC T I T C T R EO AN N A SEHPI 4 S T PD E E O N NMA ) I I T D S E E UENK V I BB)R T C YOEAE NTDMP I S AET S EO R L EAUB R K OI P S S AE S T E CEO R C H l E lPT DFF O NO TT / U UH OS D CA BC T OU AU T E S D (ND F O EO O I E R T WSH A P OE L S STMT L N A MRI O EO D TP F O N RN NXFI A % S EGY I G N N A I NT I A /D AC P ,N EM HL ) CL NN O XO !I ECC A I D N ) N I S E I T I V I T C A G N I W O L L O F E H T E K A T R E D N U N A C / , N !

A I D N ) N I S E I N A P M O C P U O R G Y N A P M O C T N E R A P E H T A I D N ) N I G N I T N E S E R P E 2

S E I N A P M O C N A I D N ) D N A Y N A P M O C T N E R A P E H T N E E W T E B L E N N A H C N O I T A C I N U M M O C A S A G N I T C ! F L A H E B N W O S T I N O S T N E D I S E R N A I D N ) H T I W S T C A R T N O C Y N A O T N I R E T N E T O N L L A H S T )

G N I D E E C X E T O N D O I R E P R O F E S A E L N O T P E C X E A I D N ) N I Y T R E P O R P E L B A V O M M I Y N A E R I U Q C A TS O R NA LE L Y A HE SV TF I )

FS O L E TN U N OA TH E C MG N EI BK ON T A EB VL AA HM R /O ,N EH HG T U FO O R EH CT NY AN NA EP T M N I O A C MN G DI NE AR O NF OE I T H A T R E M PO OR F PS UE C TN E S A T EI T HM T RE OR F E SG E N S NA EH PC XX EE N EG HI T E R LO L ! F

D E N R A A EI D EN M) ON CI NE I S I DW ER VE I H E T CO ER R O NT OI I T Y A B R E D NE R UE MD EN R E RR E S HE T C I O V R YE NS A S RE OI T DV I EI GC T R A A H C/ E, BE H LT L A R HO SF SA E I ED F N ) NN OI I S E S C I I F MF MO E OH CT OY .B

YN NI A/ E, KY AB T TE O U NN LE L A V HE SR F TO ) N A I O D I T NA ) R NE I N YE T G I V O I T N C AE SB S L L E A NH I S S UE BR YE NH A4 NY T OI V YI R T R C A A CL A OI T R T DS EU WD ON L I L A R TO O L A NI C SR I AE I M D NM ) O NC I /G ,NA I I EDD A HR N 4T )

A P M O C D N A S E I N A P M O C P U O R G T N E R A P N E E W T E B S N O I T A R O B A L L O C L A I C N A N I F L A C I N H C EA T I GD NN I ) T O N I MS OE RI 0N

E B O T D E R E D I S N O C E B L L A H S E V O B A D E N O I T N E M Y T I V I T C A E H T D N O Y E B Y T I V I T C A Y N! AG% N& I F K AO T N R O E I T DN NE UV YA T R I T T N N O EC NN !I

-

A I D N ) O T M O R F T R O P M I T R O P X E G N I T O M O R 0

F R D O E N L EA A N CE NO A$ O I L T I P T D A A RE R I T E S C S I HR I OG T O SE O S H !R YT F NU FO A! O Y R MR ON A T UN /O DU 0T NO AC A " R R OE OX E H M /N ET N "N I ! C / N I L OB ,# I T U N. A A& 0 R T HM Y S I SR R I G A LO ET B & 2O AN T . I S NE E N OH OO I I T T T T A A Y GC R NI OB I L PD R P RE I S P O T E CS DA NT E N ) AA T FA I T D O I NM EN ) T O A I EB T C U DS A I I I F S I C L T T L O R U A S E OH S #! TS EF N A HO EIK N D T DN A I FS S B ) O E E L N ) YC R I I PT Y NSR OR OSO #! SEG R N E I E S T PU A !B#

[If

a

% # ) & & / 4 # % * / 2 0 % # ) & & / ( # . ! 2 " % # ) & & / . / 3 ) ! ) ,

E/ R U, T F A O NT N RE E T M O H MS I OL RB PA T ES HE T R FO O F SN T O N I ES DS EI CM ER T E N P AE H DT NG UN OI RV G I KG CE L AI BH SW T N C AT CE I L S P D PN AU OF T F NO S OE I T C A R R U E O DS I S Y NT OI V CI T EC UA DF SO E N VO I G I T )A "C O 2L ED HN 4A

454 Para 21.3

“I, subject to the condition that the parent company satisfies the eligibility criteria for net worth and profit”.

21.3.3 Permitted Activities

21.3.4 Prohibited/Restricted Activities

21.3.5 Procedure of Registration

(a) Application to be submitted

Form FNC

Other documents to be submitted with an application


% # ) & & / . / 3 ) ! ) ,

N OK I T N A A R B T S T I A G H ET R FH O T I YW R T S N N UO OT I CA L E YR R T G N N UI OK CN TA S OB HD EA HH T S NA I H RT E N KA NC AL I BP SP T A N E AH CT I L S P R PA AE EY HF T O MR OE RB F M TU R ON PE EH 2T G S R N E I KW NO AH "S

[If the applicants’ home country laws/regulations do not insist on auditing of accounts, an Account Statement certified by a Certified Public Accountant (CPA) or any Registered Accounts Practitioner by any name, clearly showing the net worth may be submitted]. c

S A E S R E V O E H T F O D A E ( E H T E S A C N I # . & M R O & F O Y R O T A N# G. I S F& O RM UR OO V& AE F H NT I G YI N EN NG RI OS T T T !O FN O S I RY E T I WT ON 0E

d

F O E S A C N I S R A E Y E V I F E E R H T T S A L E H T R O F Y N A P M O CY L TE N V AT I CC I L E P P PS AE ER HE T C I FF O F TO E N EO HS SI A EL I C NE AC L I A F F "O DH EC T I N D A UR !B

the original Certificate is in a language other than in English, the same may be translated into English and notarized as above and cross verified/attested by the Indian Embassy/ Consulate in the home country]. b

Y N A P M O C T N A C I L P P A E H T Y B N O I T A R A L C E

OSCP N T U ONO SI R E TUG KAF E R AE HY T R PT N E OOA DS T P N UYEMO U N OS YADC O NPET D AMI S N PO E R O R A T MC E O YAC CPAPI U E F TOMH F N R O EGTTN R AYO H B A Y T S PR T I AYE A T I ED I I L LM HI I T S B H TBAEC B I A U L N L HS L A YI T S R N W GT IAAB NR E TI I OA T H DT F A HN T TT )F S R O ODNT I N EP L R PAEA B C AUAI P CSIF N I LLDFO O N A P I ) PC NY N ANI T OI SI L EAEI N A B R CI I I A E F L F HYF N HI WROC F A N O S ONE S SAS E CIRA B A EL I EC N HI N EHT HCF T NOY N EA A G R DB NP I I V M N OAO O RSI PA TC f Letter of comfort

e D

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P A E H T E U S S I L L A H S K N AI A BD )N Y) R N OI G/ E" T A #/ $, !G N EI HH T S I L KB NA AS T "E ER VO R F E Y S T E I T 2N EE HT T N E MD I OS RE F R .N )O 5N EE HH T T FO O T TR P E I T E T CE EL R L A RV E O T F R !P

EE UC N DE GR NE I H S I D C A R S E D XR EA RG E E T R F A S LA L A F L HE SS T KI NG AN BY I )F S YT I R OA GS ED T N A #A D $N !U EO HR G 4K C A B S T N A C I L P P A E H T F O T C E P S E R N I E C N E G I L I D

Due diligence to be exercised by AD Bank:

-

(b) Onward submission of Form FNC to RBI by AD Bank

Para 21.3 455

-

(c) Approval Letter:

-


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L A D O . E H T S A A I D N ) N I S E CA I I F D F O N S) T N I I FS O E EI C NF F OO YS F I T T I N F EO DL I L YA AF MO S TE N I T AI CI V I L T P C PA AE EH HT 4E T A N I D R O O C L L I W H C I H W E C I F F / b Nodal office to be identified:

T DN EA T T C I I L MP RP E D PAE NEE EHN ETE BYH SBT D A G HEN T TT I A I Y HMI F T WBS UU OS T J NEK OBN I T YA I AB D DM) A Y K NN R I O A S G BE E I T )A T I V Y# I R T O$ C AG! E GT D NA I E #T K A$A T N R !G E I D S NAE UID D NE R) OF H F T SOH T KG S E NU UAO Q R E"H 2ET V K R E N S A E 2" E EV HR T E YS BE Y2 L L E A H I T T I O N T I

Compounding order on additional office

Hirose Electric Singapore Pte. Ltd.

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Additional office in Noida

% # ) & & / 4 # % * / 2 0 % # ) & & / ( # . ! 2 " % # ) & & / . / 3 ) ! ) ,

T DN NA AT X EE R UE T H A NT H T RI E W T O EI A MC D ONN RA) PI L EPN HMI T O/ FC, O G DN SN I T AH N S E L I DCB ETA CET E S S T DE N R ANO U FF /F Y "O T SI T N /E ,CE R N GUG NOE I I SR H STO I NF L B E AAH C I T T L S P E O T RPL OAA E F V HO AT I R R FP E O P T I A Y R T T C I N V YT A I T R I CG L I AS B I FM G O I R L NO E ON ET I HA # T C9 OO T L+ F AI ND I E KT NT AI BM B )U YS R E OR GE EB T A T #O $N D !E EE HN T O# T . R D&E E I T MR L TR I A MO E BFD UNE SIT EDT I BEM N B YO AT U I S MN Y SED /MA E "SR TL N S A /ES T ,MN UE LC A NOM ODU I T EC I HO D DTD ARE H GET NVO E I T H WS SO I E L (G B A N T MA S E RH ROC OFO F #N S. E T R S &A E UHR E QSE E ER H 2F T

Liaison office in Bangalore and Delhi

456 Para 21.3

Activity to start within six months of the approval:

Extension of time:

21.3.6 Application for Additional Offices and Activities

a Number of offices:

c Additional Activities:


FEMA PRACTICE MANUAL Author :

SUDHA G. BHUSHAN

Publisher: TAXMANN Edition :

2022

ISBN No.: 9789356221437 Date of Publication: APRIL 2022

Rs. 1995

Description: This is a comprehensive book on the Foreign Exchange Management Act 1999 (FEMA), which presents a wide range of complex cross-border transactions in a meaningful and straightforward manner. It helps the reader understand the intricacies of the law and guides companies in effective compliance. This book is a one-stop solution for the following: Professionals including Chartered Accountants, Company Secretaries, Cost Accountants, Lawyers, etc. Chief Financial Officers (CFOs) of Multinational & Indian Companies Authorised Dealer Banks Students Persons having an interest in international transactions The Present Publication is the latest 2022 Edition, authored by CA Sudha G. Bhushan. It is amended up to 14th March 2022, with the following noteworthy features: [Exhaustive Commentary] on various Sections, Rules, Regulations under FEMA. It also provides a complete guide to foreign investments, presented in a manner that is easy to understand & practical to use [Practical Examples] that are primarily based on real case studies have been incorporated in this book for every point [Entity-wise Bifurcation of provisions of FEMA] All provisions concerning one type of entity (e.g. NRI, Residents, Unincorporated Entities, LLPs, etc.) are discussed in the respective chapters. This makes the book useful for the practitioners who are advising their clients [Balance Sheet Approach] is used in the book to describe the applicability of provisions of FEMA, which will be particularly useful to CFOs of multinational & Indian companies [Making the Complex Law, Simple] Every effort has been made to use pictorial representations, checklists, examples, case studies, various Compounding Orders issued by the Reserve Bank of India to provide a clear understanding of the subject [Guidelines & Procedures] required for transactions have been discussed in detail

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