Can LO/BO have more than one bank account in India?
No, If an LO/BO wants to open more than one account it has to obtain prior approval from RBI through its AD Category I Bank justifying the reason thereof.
Can a LO/BO/PO acquire property for its operation?
Only BO/PO of a foreign entity are permitted to acquire property of their own use and carry out permitted/incidental activities but not leasing or renting of property.
However, entities from Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, Nepal, Bhutan, China, Hong Kong and Macau require prior approval of the Reserve Bank to acquire immovable property in India for a BO/PO.
Is LO/BO/PO required to register/report with Police authorities?
Only applicants from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong, Kong, Macau and Pakistan shall have to register with the State Police authorities.
Whether credit facility can be availed in foreign currency for PO?
Yes, the AD Bank should ensure compliance to the extent instruction issued by the Deptt.
Whether AD Bank can approve the transfer of Assets of LO/BO/PO to third party resident?
Yes, it can approve the transfer of assests.
Can a subsidiary of Indian company abroad open a BO in India and whether this will come under automatic route?
Can BO open FCY account for doing normal business transactions?
Whether a branch office (BO) or project office (PO) can send outward remittances, permissible under FEMA, through any AD Category I bank or it has to be through the designated AD Category I bank only?
Wherever the BO or PO is required to remit funds outside India, within the applicable guidelines under FEMA, they may do so not necessarily through the designated AD Category I bank but through any AD Category I bank of its choice subject to obtaining no objection certificate (NOC) from the designated AD Category I bank. The remittances have to be for transactions settling on Cash / Tom / Spot basis only. The remittance has to be through banking channel in either of the two methods:
(1) The designated AD category I bank will transfer equivalent INR amount to the transaction handling bank. The transaction handling bank can remit the amount to the overseas parent office of BO / PO through SWIFT. However, the transaction handling bank will have to ensure KYC compliance and the necessary documentation. It will also be required to share the SWIFT message along with the details like UIN No, beneficiary and remittance details with the designated AD category I bank.
(2) The designated AD category I bank will transfer equivalent INR amount to the transaction handling bank. The transaction handling bank will then credit the NOSTRO account of the designated AD Category I bank which in turn will remit the amount to the final beneficiary.