Normally, Branch Offices are opened in India for specified purpose and once such purposes are achieved, it may apply for Closure of Branch office in India .
For closure of Branch office in India and for getting approval for remittance of proceeds (after closure) of BO an application is required to be submitted with the designated AD Category – I bank by the BO/ LO.
The application for winding up/closure of Branch office may be submitted along with the following documents:
- Copy of the Reserve Bank’s approval for establishing the BO/ LO.
- Auditor’s certificate :
- Along with a statement of assets and liabilities of the applicant and indicating the manner of disposal of assets and the manner how the remittable amount has been generated;
- Confirming that all liabilities in India including arrears of gratuity and other benefits to employees, etc. of the office have been fulfilled.
- Confirming that no income accruing from sources outside India (including proceeds of exports) has remained un-repatriated to India.
- Confirmation from the applicant/parent company that no legal proceedings in any Court in India are pending against the BO.
- A report from the Registrar of Companies (ROC) regarding compliance with the provisions of the Companies Act, 2013.
- The designated AD Category – I banks will confirm that the BO / LO had done their respective compliances
- Any other document/s, required by Reserve Bank of India/AD Category-I bank while granting approval.
- Designated AD Category-I bank may allow remittance of winding up proceeds in respect of offices of banks and insurance companies, after obtaining copies of permission of closure of branch office from the sectorial regulators (like IRDA etc) along with the documents mentioned above.
The designated AD Category – I bank will report to the Reserve Bank (the Regional Office concerned for LOs and Central Office for BOs), along with a declaration stating that all the necessary documents submitted by the BO / LO have been scrutinized and found to be in order for closure of Branch Office.
Dear Mr Agrawal
One of my client company is a FC having a branch office in Gujarat. It has discontinued its operations in the current year. It has efiled Form FC 3 till the fy 31st March, 2016 but has missed out on FC 4 i.e. AR.
Would ROC Delhi insist on efiling of all the pending forms. The FC doesnot have any shareholder from Indian citizens or entities incorporated in India.
Secondly would it require permission from RBI before Form FC 2 is efiled with ROC.
I would appreciate if you may offer your comments on the above issues.
I am PCS Rohit Dudhela from Ahmedabad