PART B - OFFICES AND REPRESENTATIVES ABROAD |
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Establishment of Overseas Offices |
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9B.1 |
(i) |
Firms/Companies in India desiring to open offices (trading/non-trading) or post |
representatives abroad including offices/representatives sought to be opened/posted abroad for promotion of their exports should submit applications to their bankers (authorised dealers) in form OBR alongwith the particulars of their turnover duly certified by their auditors and also a declaration to the effect that they have not approached/would not approach any other authorised dealer for the facility being applied for. Authorised dealers may release exchange towards initial expenditure as also for recurring expenses of the office as under, provided the applicant fulfils the following conditions: |
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Category |
Initial Expenditure |
Recurring Expenditure (per annum) |
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(a) |
EEFC Account |
No limit for remittances out |
No limit for holders remittances out |
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of EEFC funds. |
of EEFC funds. |
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(b) |
Firms/companies |
Up to 2% of their average |
Up to 1% of their average annual |
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not having EEFC |
annual sales/income turnover |
sales/income turnover during last |
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accounts or not |
during last two years. |
two years. |
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having sufficient |
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funds EEFC accouts. |
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NOTES: |
A. |
The above limits are applicable for all the overseas offices of the applicant taken together. In regard to category (b) above the ceiling is inclusive of remittances, if any, allowed out of EEFC Account. |
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B. |
In the case of newly established 100% EOUs or Units in EPZs and Hardware/Software Technology Parks, exchange may be released as per their estimated requirements for initial as well as recurring expenses on verification of suitable documentary evidence during the first two years of their operation. From third year onwards, exchange may be released as per item (a) or (b) above. |
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C. |
Remittances towards actual retainer fees may be allowed to be made to the overseas agents engaged for rendering services for promotion of exports by Indian firms/companies provided (a) the applicant does not have a non-trading/trading office or representative posted at that centre, (b) the eligibility criteria as stated in (i) above is satisfied and (c) the amount of retainer fee is within the ceiling fixed for recurring expenses of all the overseas offices taken together as stated above. |
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D. |
Firms/companies wishing to take Indian goods such as floor covering, furniture and other items for office use may approach Reserve Bank for grant of GR waiver in respect of such exports. |
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