ECB

http://www.indialiaison.com/ECB.htm

setting up of 100% foreign subsidiaries

A foreign company can form a WOS in sectors where 100% foreign direct investment is permitted under the FDI policy. A WOS gives the most flexibility and protection to a foreign investor in India. A WOS can be defined as an entity whose entire share capital is held by foreign corporate bodies. A WOS can be formed either as a private or public company, limited by shares or guarantee, or an unlimited liability company. Considering the various exemptions available to a private company limited by shares (a “private company”) under India’s Companies Act, 1956 (the “Act”), it is recommended that a WOS be established as a private company. Key Features of WOS : In India companies are incorporated and regulated under the provisions of the companies Act, 1956 and are subjected to certain procedural formalities under the Act. The personal liability of member is limited to the amount unpaid on their shares It can undertake all types of business activities as may be permitted by its charter, which may include marketing, manufacturing, providing services, etc. No RBI approval is needed where 100% direct investment is permissible. It is treated as domestic company under Indian tax law and is eligible for all the tax deductions and benefits as provided to any other Indian company. Individual director are required to obtain DIN (Director Unique Identification Number) from the Ministry of Company Affairs. Funding can be in the form of share capital, loans and business operations.  Services required: Formation of WOS in accordance with the requirements of Ministry of Corporate Affairs Assistance in procuring office spaces Obtaining various registrations such as PAN, TAN, ESI / PF, Excise, Service Tax, VAT Registrations, etc. Assistance in managing Bank Accounts Consultancy on utilization of funds Assistance in ECB from overseas bodies and approvals from Indian Authorities Payroll Support Data Entry Support Maintenance of Books of Accounts General Advise on various law matters Ensuring proper compliance with various statutes Preparation and finalization of Balance Sheet and Profit & loss Account Tax Planning and management Filing returns as required by various applicable statutes Representation before Revenue Authority Obtaining advance rulings

export/import of foreign exchange

http://www.eximguru.com/exim/guides/export-finance/ch_14_foreign_exchange_management_act.aspx

Modification of IEC

STATUS MODIFICATION OF IEC:
In addition to updation of IEC, if there is any change in the existing IEC, like change of directors, change of name or constitution, change of address or addition/deletion of branch, the following documents are required to be submitted.

1. Request letter on Letter Head for Status Modification.
2. Application as per Appendix 2 and 3 in duplicate.
3. Documentary evidence preferably Electric bill, telephone bill, lease agreement copy, Sales Tax/Excise Certificate/SSI for change or inclusion of addresses. For change of directors please submit copy of Form-32. In case of change of name or change of constitution, ROC/Partnership deed copy as applicable should be submitted.
4. Also refer to para 9.1(b) of H.B.2002-2007 regarding change in name and constitution is reproduced below.

" If there is any change in the name/address or constitution of IEC holder/licencee/Actual User eligible for import without a licence/recognised status holders, the concerned IEC holder/licencee/Actual User/status holders, as the case may be, shall cease to be eligible to import or export against the licence/IEC N0. or any other facility permitted under the Policy and Handbook, after expiry of 60 days from the date of such change in his name or constitution, unless in the meantime,

1. the IEC holder/licencee/status holders has got the consequential changes affected in the IEC NO/licence or the recognition certificate, as the case may be , by the concerned licensing authority;
2. the Actual User has got the consequential changes affected from the concerned authority in the industrial licence issued by the Secretariat for Industrial Assistance (Ministry of Commerce and Industry) or Certificate of Registration as an Actual User issued by Director of Industries of the State Government or has received an acknowledgement for filing of a memorandum with the Secretariat for Industrial Assistance. Provided, however, the licensing authority issuing the IE Code may, condone the delay on payment of a penalty of Rs.5000/-.

However, the change in the director of a public limited company shall not be considered as a change in the constitution of the company."

1. Penalty of Rs.5000/- payable in favour of Licencing office (Jt.D.G.F.T, Mumbai in case of Mumbai office) by Challan or DD, in case of delay beyond 60 days as per para 9.1(b) of H.B.2002-2007 reproduced above is applicable in the following catagories.
   Change of address of Registered Office of the firm/company.Note: Date of change of address shall be either the date of agreement or the date of occupation of the new premises. In case of change of address of registered office to a branch/factory/residence address of the IEC holder already included in the IEC, self declaration of the IEC holder regarding date of change of address will be accepted.
2. Change of Partners.
3. Change of directors of a Private Limited Company.
4. Change of Proprietors in the Proprietorship concern.
5. Change of name of the firm/company.
6. Change of constitution.

Note: Penalty in case of delay will not be applicable in case of Inclusion/Deletion of branches/divisions/factory address

1. Self addressed envelope affixed with Rs.25/- Postal stamp.
2. Original IEC Certificate.
3. RBI declaration on the Letter Head as per sr.no.6 of Foot note to Appendix-3 in case of change of directors/partners/prop./Karta of the firm/company.
4. Self Certified copy of PAN.

10)In case of Mumbai office Submit Documents on the 2^nd floor, North East Wing, IEC Counter, between 10.00a.m. and 12.30p.m. from Monday to Friday.

(Please tag all the documents to a folder)

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application for IEC code

Definition of IEC Code

IEC Code is unique 10 digit code issued by DGFT – Director General of Foreign Trade , Ministry of Commerce, Government of India to Indian Companies.



Full form of IEC Code

Full From of IEC Code is  “Importer Exporter Code ”. To import or export in India, IEC Code is mandatory. No person or entity shall make any Import or Export without IEC Code Number.



IEC Code No Notification

Directorate General of Foreign Trade(DGFT) issued a Policy Circular No.15 (RE-2006)/2004-2009 Date: 27th July, 2006) for New System for issuance of Importer-Exporter Code Number.



Eligibility, Legal Provisions and Conditions for IEC Code Number

Eligibility condition and Legal Provisions are given for IEC Code Number Application in Foreign Trade (Regulation) Rules, 1993 Ministry of Commerce, Notification No. GSR 791 (E), dated 30-12-1993.




Application for Grant of IEC Number

An application for grant of IEC number shall be made by the Registered/Head Office of the applicant and apply to the nearest Regional Authority of Directorate General Foreign Trade, the Registered office in case of company and Head office in case of others, falls in the ‘Aayaat Niryaat Form - ANF2A’ and shall be accompanied by documents prescribed therein. In case of STPI/ EHTP/ BTP units, the Regional Offices of the DGFT having jurisdiction over the district in which the Registered/ Head Office of the STPI unit is located shall issue or amend the IECs.

Only one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation.



IEC Code Online Application Form

The application  can  be download  Form in PDF or Word. This is called "Aayaat Niryaat Form - ANF2A". Along with IEC Code Number Application Form it is necessary to submit Appendix-18B Attested by Applicant's Banker in his letter head with two passport size photo).




List Of Regional Authorities Of DGFT And The Corresponding Office of Reserve Bank Of India, Exchange Control Department

You can find the list of Foreign Exchange Control Department of the RBI as given in Appendix-18D.



Validity of IEC Code No

An IEC number allotted to an applicant shall be valid for all its branches/divisions/units/factories as indicated in the format of IEC given in Appendix- 18B. 



Duplicate Copy of IEC Number

Where an IEC Number is lost or misplaced, the issuing authority may consider requests for grant of a duplicate copy of IEC number, if accompanied by an affidavit.



Surrender of IEC Number

If an IEC holder does not wish to operate the allotted IEC number, he may surrender the same by informing the issuing authority. On receipt of such intimation, the issuing authority shall immediately cancel the same and electronically transmit it to DGFT for onward transmission to the Customs and Regional Authorities.



Application Fee For IEC Code Number

Application Fee :  Rs 250.00
Mode of Payment : In Demand Draft/ Pay Order from any designated bank in favour of Zonal Joint Director General of Foreign Trade or Payment through EFT ( Electronic Fund Transfer by Nominated Bank by DGFT Like HDFC Bank, ICICI Bank, State Bank of India, UTI Bank, Punjab National Bank, Central Bank etc) or Application fee can deposited by TR6 Challan with Duplicate Copy in any branch of Central Bank of India and TR6 Challan need to be submit along with IEC Code Application.

Specified fee shall be paid for making an application under any provision of the Policy and Handbook of Procedure Volume-I.. The scale of fee, mode of payment, procedure for refund of fee and the categories of persons exempted from the payment of fee are contained in Appendix-21B.



Territorial Jurisdiction of Regional Authorities

Every application, unless otherwise specified, shall be submitted to the Regional Authority of Directorate General Foreign Trade, as per the territorial jurisdiction of the Regional authorities indicated in Policy and Handbook of Procedure Volume-I.



Filing of Application

Application can be filed online in DGFT website, details of online links are given below.

Every application for an Import/Export licence/ certificate/ Authorisation/ permission or any other purpose should be complete in all respects as required under the relevant provisions of the Policy/Procedures and shall be signed by the applicant as defined inparagraph 9.9 of the Policy. An incomplete application is liable to be rejected giving specific reason for rejection. However in case of manual applications, the applicant would furnish a soft copy of the application in MS word format.



Profile of Importer/ Exporter

Each Importer/Exporter shall be required to file importer/ exporter profile once with the Regional Authority in Part 1 of ‘Aayaat Niryaat Form - ANF2A’. Regional Authority shall enter the information furnished in Part 1 of ‘Aayaat Niryaat Form ANF-2A’ in their database so as to dispense with the need for asking the repetitive information. In case of any change in the information given in Part 1 of ‘Aayaat Niryaat Form ANF-2A’, importer/exporter shall intimate the same to the Regional Authority.



Self Addressed Stamped Envelope

The applicant shall furnish a self addressed envelope of 40 x 15 cm with postal stamp affixed on the envelope as follows for all documents required to be sent by Speed Post:



a	Within local area	Rs. 25.00
b	Up to 200 Kms.	Rs. 25.00
c	Between 200 to 1000 Kms	Rs. 30.00
d	Beyond 1000 Kms.	Rs. 50.00


IEC No: Exempted Categories

The following categories of importers or exporters are exempted from obtaining Importer - Exporter Code (IEC) number:

1. Importers covered by clause 3 (1) [except sub-clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and (k)] of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.
2. Ministries/Departments of the Central or State Government.
3. Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture.
4. Persons importing/exporting goods from/to Nepal provided the CIF value of a single consignment does not exceed Indian Rs.25,000.
5. Persons importing/exporting goods from/to Myanmar through Indo-Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rs.25,000.
   
   However, the exemption from obtaining Importer-Exporter Code (IEC) number shall not be applicable for the export of Special Chemicals, Organisms, Materials, Equipments and Technologies (SCOMET) as listed in Appendix- 3, Schedule 2 of the ITC(HS) except in the case of exports by category(ii) above.
6. The following permanent IEC numbers shall be used by the categories of importers/ exporters mentioned against them for import/ export purposes..
   
   

   S.No	Code Number	Categories of Importers / Exporters
   1	0100000011	All Ministries / Departments of Central  Government and agencies wholly or partially owned by them.
   2	0100000029	All Ministries / Departments of any State Government and agencies wholly or partially owned by them.
   3	0100000037	Diplomatic personnel, Counselor officers in India and officials of UNO and its specialised agencies.
   4	0100000045	Indians returning from / going abroad and claiming benefit under Baggage Rules.
   5	0100000053	Persons / Institutions / Hospitals importing or exporting goods for personnel use, not connected with trade or manufacture or agriculture.
   6	0100000061	Persons importing / exporting goods from /to Nepal
   7	0100000070	Persons importing / exporting goods from /to Myanmar through Indo-Myanmar border areas
   8	0100000088	Ford Foundation
   9	0100000096	Importers importing goods for display or use in fairs / exhibitions or similar events under provisions of ATA carnet This IEC number can also be used by importers importing for exhibitions/fairs as per Para 2.29 of HBPv1.
   10	0100000100	Director, National Blood Group Reference Laboratory, Bombay or their authorized offices.
   11	0100000126	Individuals / Charitable Institution /Registered NGOs importing goods, which have been exempted from Customs duty under Notification issued by Ministry of Finance for bonafide use by victims affected by natural calamity.
   12	0100000134	Persons importing / exporting permissible goods as notified from time to time, from / to China through Gunji, Namgaya Shipkila and Nathula ports, subject to value ceilings of single consignment as given in Para 2.8(iv) above.
   13	0100000169	Non-commercial imports and exports by entities who have been authorized by Reserve Bank of India.

Note: Commercial Public Sector Undertaking (PSU) who have obtained PAN will however be required to obtain Importer Exporter Code number. The permanent IEC number as mentioned above, shall be used by non-commercial PSUs.


Guidelines for Application of IEC Code Number.


Mandatory Requirements to apply for IEC Code Number

1. Covering letter
2. Fill Part A, B & D of the application form.
3. Application must be accompanied by documents as per details given below:
   1 Bank Certificate from the bank on Bank letter head as per proforma (Part B) given in the application.
       a.  In case of Proprietorship firms, please furnish
              i) Date of Birth of individual
             ii) Number of IECs held along with their details
      b.  In case of Companies, please furnish
             i) Extract of Board of Resolution.
            ii) MOA with Form 32 and ROC in case of change in Directors.
     c.  In case of others
           i) Notorised Partnership Deed showing date of formation.
           ii) No Objection Certificate from other partners/HUF.
   3.2 Self certified copy of Permanent Account Number (PAN) issued by income Tax Authorities.
   
   3.3 Two copies of passport size photographs of the applicant. The photograph pasted on the banker’s certificate must be attested by the banker with Seal and Signature of the applicant.
   
4. The application must be submitted in Duplicate.
   
5. Each individual page of the application must be signed by the applicant.
   
6. Self addressed envelope stamped with Rs. 25 (Local Address) & for others Rs.30/-. These documents may be kept secured in a file cover.
Check List of Documents to apply for IEC Code
1. Covering Letter on your company's letter head for issue of new IEC Code Number.
2. Two copies of the application in prescribed format ( Aayaat Niryaat Form ANF 2A) must be submitted to your regional Jt.DGFT Office.
3. Each individual page of the application has to be signed by the applicant.
4. Part 1 & Part 4 has to be filled in by all applicants. In case of applications submitted electronically.
5. No hard copies of Part 1 may be submitted. However in cases where applications are submitted otherwise, hard copy of Part 1has to be submitted.
6. Only relevant portions of Part 2 need to be filled in.
7. Rs 250.00 Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms ofAppendix 21B.
8. Certificate from the Banker of the applicant firm in the format given in Appendix 18A.
9. Self certified copy of PAN issuing letter or PAN (Permanent Account Number) Card issued by Income Tax Authority.
10. Two copies of passport size photographs of the applicant duly attested by the Banker of the applicant.
11. Self addresses envelope with Rs.25/- postal stamp for delivery of IEC certificate by registered post or challan/DD of Rs.100/- for speed post.
How to submit IEC Code application
Application can be submitted in person/by Authorised Employee of the Company at the R & I counters in the office Or It can be sent by post/courier.

Processing of IEC Code Application
The application can be submitted at the counter in person at the office or it can be sent through Post/Courier. An acknowledgement in form of a receipt having File Number is generated on receipt of application. The file number is used for any correspondence/query regarding the IEC application submitted to the office. The application is then sent to IEC section where it is processed. If the application is found complete in all aspects (as per requirements prescribed) an IEC is generated, or else a deficiency letter stating the nature of deficiency is prepared and sent to the applicant. Replies are awaited in cases where deficiency letter is issued and after due compliance by the applicant the IEC is allotted.

Issue and Despatch of  IEC Code
IEC allotment letter is sent through post at the registered office mentioned by the applicant in the application. Similarly deficiency letters are sent to applicant by post.

About IEC Application Status
File No for IEC application
A new option to know the file number has been introduced for all exporter who are sending their application through Post/Courier. The applicant has to input PAN number to get the file number.

Status of IEC Application
The applicant can know the status of the IEC application using option “Status of IEC Application” on the website of CLA.
IEC issued day wise
IEC’s issued daily can be viewed on the website using option “IEC issued day wise”
File No for IEC application
Applicant’s who have sent their application through post/courier can know their file number using option “File No for IEC application”

IEC Code Number Related links
DGFT Online IEC Code Number Application Form -ANF-2A
View Your IEC Status : http://dgft.delhi.nic.in:8100/dgft/iecprint IEC Status at Custom(BIN) : http://164.100.9.176/iecstatus.html
http://www.dgft.gov.in/dgftcla
http://www.dgft.gov.in
http://www.icegate.gov.in

DGFT  Zonal Office New Delhi :- IEC Help contact
PBX No. Tel-011-23379111, 23379112, 23379113
e-mail : jdgftcla@hotmail.com
Public Relation Officer : Tel-011- 23378740

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