OBR
[Paragraphs 9 B.1(ii) and 9 B.1(v)]
Application for permission to post a representative/
establishoffice/branch overseas
Instructions :
1. The application together with the suppporting documents should be forwardedto the
authorised dealer/Reserve Bank as indicated in paragraph9B.1of the Exchange Control
Manual.
2. Hotels,travel agents/tour operators may submit the form & other documentsin duplicate.
3. Concerned area/territory' means the countries/territories to be covered bythe proposed
branch/agent.
4, The estimates of foreign exchange expenditure should be given inunitsof foreign currency
and the appropriate rupee equivalent furnishing the exchange rate applied.
5. Full particulars of any special export regulations (e.g.exports permissible only against
confirmed letter of credit,etc.) covering the applicant's products being exported should be
furnished.
Documentation :
6. Correspondence,if any,in original together with photo copies there of regarding the
arrangement made in foreign country for posting ofrepresentative/establishment of
branch/office.
7. Bank certificates,in form BCX,together with photocopies thereof for the immediately
preceding four calendar half years insupport of export realisations (Item 7 of application)
8. In the case of a trading branch,cashflow statement in the proforma attached indicating the
value of stock to be held,percentage of marked-up price and projected income and
expected profit margin should be furnished.
PART I GENERAL
1. (a) Name and address of the applicant (a)
(b) State whether the applicant is a proprietary (b)
concern or partnership firm or limited
company or public sector undertaking
(c) Exporter's Code Number allotted by (c)
Reserve Bank
2. Nature of the applicant's business in India
(a) Exporter of commodities (a)
(b) Exporter of software (b)
(c) 100% Export-Oriented Unit (c)
(d) Consultancy organisations/Construction (d)
company
(e) Others (please specify) (e)
3. (a) Names and addresses of applicant's (a)
bankers, in India
(b) Number of the EEFC account, if any, (b)
opened by the applicant and the name of
the AD with whom it is opened
4. If the applicant is holding a registration
certificate as a Star Trading/ Trading Export
House issued by Government ofIndia, No. and
Date of such certificate
5. Particulars of foreign currency
balances/securities, if any, held by the applicant
- quote Reserve Bank's approval number and
date
PART II EXISTING BUSINESS
6. What are the present arrangements for your
representation in the country/territory
concerned ?If there is any agency arrangement,
its full details including the number and date of
Reserve Bank's approval and commission paid
during the past three years.
7. (a) Details of export realisations for the past (Rs. lakhs)
two years Half Value of exports realised
year ended
global Territories
covered by
the proposed
office
(1) (2) (3)
(b) Also furnish commodity-wise/country- (b)
wise break up of exports realised in the last Country Commodity Value of
two years exports
realised in
Rupees
__________ _________ ___________
Year year
8. Value of export outstandings as on date of
application (i.e., beyond the prescribed period
of six months).Pleasefurnish brief particulars of
such outstandings together with RBI
permission for extension, etc.
9. Particulars of existing overseas representative
offices/branches/subsidiaries/agents of the
applicant and also of their sister concerns in
India indicating the particulars of remittance
facilities from India.
PART III PROPOSAL
(To be completed wherever applicable)
10. Does the applicant want to have
(i) an agent (on fixed remuneration basis), or (i)
(ii) a trading branch, or (ii)
(iii) a representative liaison office/non-trading (iii)
branch
11. Place and country of posting of
agent/representative office/branch
12 Territories/countries to be covered by the
proposed agent/representative office/branch
13. Details of business to be conducted abroad by
the agent/representative office/branch
14. With the facility of the proposed
agent/representative office/branch what would
be the projected exports of the applicant in the
coming two years
15. When the agent is appointed or trading
office/representative office/branch is opened,
are the agency commission payment
arrangements subsisting in the concerned area
or territories to continue ?If so, reasons
therefor.
16. Will the representative office/branch result in
saving of foreign exchange which would
otherwise have to be expended ?If so give
details supported by figures and any
documentary evidence available
17. If you propose to open a trading branch,please
state
(a) its exact nature of (a)
activities.(Firms/Companies in India from
whom the trading branch will be buying
goods on principal to principal basis to be
stated)
(b) Expected increase in the value of exports (b)
to the territory concerned in the next 2
years(year-wise) in the event of facility
being granted
(c) the time within which the trading branch (c)
would become self supporting indicating
manner in which this will be achieved.
18. If a representative (on fixed remuneration)
please state
(i) Particulars of the agent/representative (i)
proposed to be appointed
(a) Name (a)
(b) Nationality (b)
(c) Permanent Address (c)
(d) Present occupation (d)
(e) Whether the agent/representative will (e)
continue the present occupation after
the proposed appointment
(ii) Remuneration proposed to be paid to the (ii)
non-resident representative/locals
appointed
(iii) In the case of a representative to be (iii)
deputed from India, give detailed break-up
of expenditure proposed to be incurred (in
rupees) viz.,
(a) Salary (a)
(b) Accomodation (b)
(c) Travelling allowance etc. (c)
19. If non trading office/trading branch, please
furnish an estimate of foreignexchange
requirements (in rupees)
(a) Initial Establishment Expenses (a)
(i) advance rental/deposit for securing (i)
office/residential accomodation
(ii) other deposits (please specify) (ii)
(iii) office equipment/furniture (iii)
(iv) car (iv)
(v) others (please specify) (v)
(b) Recurring expenses per month (b)
(i) salaries of staff (give details if more (i)
than one employee)
(ii) warehousing charges (ii)
(iii) Customs duties/charges etc. (iii)
(iv) rent, (iv)
(v) rates and taxes (v)
(vi) Telephone/telex etc., (vi)
(vii)Travelling expenses (vii)
(viii) Others (specify) (viii)
We hereby certify that :
(a) The particulars given above are true tothebestofourknowledgeand belief.No application
for release of exchange has been or will be made to any other office of Reserve Bank in
respect of permission sought under this application.
(b) Alltheexpensesofthe office/representative(s) detailed above will be borne by our
firm/company.
We undertake to strictly abide by the instructionsissuedandtheconditions that may be stipulated
by Reserve Bank.
Place : ...................... .............................................................
Stamp (Signature of Authorised Official)
Date : ........................ Name: ..................................................
Designation.........................................
(Note: Signatureonbehalfofthefirm/companyshould be that of the Senior Partner/Proprietor or
Director of the firm/company, as the case may be)
(To be completed by the representative to be sent from India)
In the event of my being posted as a representative of the company/firm,
I undertaketo notify Reserve Bank immediately of any employment (full/part time) or agency
work or business undertaken abroad by me giving full details such as source of income, total
earnings, etc.
Date: ................................. .................................................................
(Signature of the person appointed as
representative from India)
Name:......................................................
Address:...................................................
Cash-flow Statement
(In the case of trading office)
1. Projected exports to the area during 3 years Year 1 Rs.
after establishment of the office
Year 2 Rs. Lakhs
Year 3 Rs. Lakhs
2. Average value of goods to be stockedRs.Lakhs Rs. Lakhs
at the office
3. Mark-up price proposed (as a percentage to
purchase price to the office)
4. Margin of profit expected (as a percentage of
purchase price)
5. Year 1 Year 2 Year 3
Opening stock
Purchases from India
Sales
Closing stock
Gross profit
Establishment expenses
Selling expenses
Audit fees
Taxes
Net profit (+)/
loss(-)
