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Section 5: Permission to an Indian entity to remit funds in certain cases

the Foreign Exchange Management (Remittance of Assets) Regulations, 2016.Central Regulations · 1999

(1) An entity in India may remit the amount being its contribution towards the provident fund/ superannuation/ pension fund in respect of the expatriate staff in its employment who are resident in India but not permanently resident therein.

Explanation:

For the purpose of this Regulation, -

(a) 'expatriate staff' means a person whose provident/ superannuation/ pension fund is maintained outside India by his principal employer outside India;

(b) ‘not permanently resident' means a person resident in India for employment of a specified duration (irrespective of length thereof) or for a specific job or assignment, the duration of which does not exceed three years.

6. Permission for remittance of assets on closure or remittance of winding up proceeds of branch office/ liaison office (other than project office)

(1) A branch or office established in India by a person resident outside India may, for making remittance of assets on closure or remittance of its winding up proceeds, apply to the Authorised Dealer concerned supported by the following documents, namely:

(A) A copy of the Reserve Bank's permission for establishing the branch/ office in India, wherever applicable;

(B) Auditor’s certificate:

(i) indicating the manner in which the remittable amount has been arrived and supported by a statement of assets and liabilities of the applicant, and indicating the manner of disposal of assets;

(ii) confirming that all liabilities in India including arrears of gratuity and other benefits to the employees etc., of the branch/ office have been either fully met or adequately provided for;

(iii) confirming that no income accruing from sources outside India (including proceeds of exports) has remained un-repatriated to India; and

(iv) confirming that the branch/office has complied with all regulatory requirements stipulated by the Reserve Bank of India from time to time regarding functioning of such offices in India.

(C) A confirmation from the applicant that no legal proceedings are pending in any Court in India and there is no legal impediment to the remittance; and (D) A report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 2013, in case of winding up of the office in India.

(2) On consideration of the application made under sub-regulation (1), the authorized dealer concerned may permit the remittance subject to the directions issued by the Reserve Bank in this regard, from time to time.

Where this provision sits

Actthe Foreign Exchange Management (Remittance of Assets) Regulations, 2016.
Section5
Marginal notePermission to an Indian entity to remit funds in certain cases
JurisdictionCentral
StatusIn force as published by the source

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