Saving Mantra Blog: Step-by-Step Process for NRI to Assess Health Insurance Need and Buy in India

For NRIs, health insurance in India is crucial to protect against rising medical costs and emergencies. Whether you visit India occasionally or maintain a base here, a comprehensive health insurance policy ensures financial security for you and your family.

This Saving Mantra guide explains the step-by-step process for NRIs to assess their health insurance needs and buy a suitable policy in India, including coverage options, documentation, and claims procedure.

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✔ Step 1: Evaluate Your Health Insurance Needs

NRIs should assess:

• Age and health condition
• Family members to cover
• Frequency of visits to India
• Existing insurance coverage abroad
• Hospitalization costs in India
• Critical illness or maternity coverage requirements

Use tools like health risk calculators or consult an insurance advisor to estimate ideal coverage.

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✔ Step 2: Decide Coverage Type

Common health insurance options for NRIs:

1. Individual Health Insurance: Covers a single person.
2. Family Floater Policy: Covers family members under a single sum insured.
3. Top-up/ Super Top-up Policy: Adds extra coverage above an existing policy.
4. Critical Illness Insurance: Covers severe diseases like cancer, heart attack.
5. Senior Citizen Health Insurance: For NRIs aged 60+ visiting India.

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✔ Step 3: Determine Sum Insured

• Base it on age, medical history, city-specific hospital costs
• Recommended sum: ₹10–50 lakhs depending on coverage needs
• Include room rent limits, ICU charges, and outpatient expenses (if desired)

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✔ Step 4: Check Policy Features

Essential features for NRIs:

• Cashless hospitalization network
• Pre-existing disease coverage
• Maternity and newborn benefits
• Worldwide emergency cover (if applicable)
• No claim bonus and cumulative bonus
• Premium flexibility

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✔ Step 5: Compare Policies

• Use insurance aggregator websites or consult insurance advisors
• Compare premium, coverage, exclusions, network hospitals, claim settlement ratio
• Check insurer’s track record for quick claim settlements

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✔ Step 6: Verify Eligibility for NRIs

NRIs must satisfy:

• Valid Indian PAN or proof of NRI status
• Indian bank account for premium payments (NRE/NRO)
• Address proof in India or abroad (as per insurer’s norms)
• Minimum stay requirement for policy activation (usually 180 days in India for some insurers)

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✔ Step 7: Complete Documentation

Documents typically required:

• Passport copy
• Visa / OCI / PIO card
• NRI proof and overseas address
• Existing medical records (if any)
• Nominee details
• Bank account proof (for premium payment)

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✔ Step 8: Pay Premium

• Payment can be made online via Indian bank account
• Some insurers allow international cards for premium payment
• Keep payment receipts for future claims

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✔ Step 9: Policy Issuance & Review

• Review policy schedule, terms, and exclusions carefully
• Confirm sum insured, waiting periods, co-pay, and deductibles
• Activate policy from start date

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✔ Step 10: Filing Claims

• For cashless hospitalization, approach network hospitals
• Submit documents: claim form, bills, discharge summary, ID proof
• For reimbursement claims, submit bills and medical reports to insurer
• Track claim status via insurer portal or customer service

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✔ Step 11: Annual Review & Renewal

• Check coverage adequacy annually
• Renew before expiry to avoid break in coverage
• Consider top-up policies for increased medical costs or aging

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Conclusion

NRIs must proactively assess their health insurance needs in India to cover hospitalization, critical illness, and family healthcare. By carefully evaluating coverage, comparing policies, and ensuring documentation, NRIs can secure financial protection during medical emergencies.

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Disclaimer

This blog is for informational purposes only and does not constitute financial or insurance advice. Insurance products, rules, and premiums may change. NRIs should consult licensed insurance professionals before purchasing a policy in India.

Introduction to NGO CSR-1 Filing

CSR-1 filing is a mandatory compliance for NGOs that wish to receive Corporate Social Responsibility (CSR) funds from companies. As per the Companies Act, 2013 and CSR Rules, only NGOs registered with the Ministry of Corporate Affairs (MCA) through Form CSR-1 are eligible to undertake CSR activities for corporates.

This Saving Mantra guide explains the step-by-step process for NGO CSR-1 filing in India, including eligibility, documentation, timelines, and post-registration compliance.

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What Is CSR-1 Registration?

CSR-1 registration:

• Is a one-time registration with MCA
• Allots a unique CSR Registration Number
• Enables NGOs to receive CSR funds from eligible companies
• Applies to trusts, societies, and Section 8 companies

Without CSR-1 approval, corporates cannot legally donate CSR funds to an NGO.

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Who Is Required to File CSR-1?

CSR-1 filing is mandatory for:

• Charitable Trusts
• Registered Societies
• Section 8 Companies

Eligibility conditions:

• NGO must be registered under 12AB
• NGO must have 80G registration
• NGO must have minimum 3 years of track record (except government entities)

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Benefits of CSR-1 Filing

• Mandatory eligibility for CSR funding
• Official recognition by MCA
• Increased trust among corporates
• Transparent and compliant CSR operations
• Easy onboarding with CSR partners

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Step-by-Step Process for NGO CSR-1 Filing in India

Step 1: Confirm Eligibility

Ensure the NGO has:

• Valid 12AB registration
• Valid 80G registration
• At least 3 years of charitable activity
• Proper governance and compliance history

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Step 2: Appoint Authorized Signatory

• Board / Trustee resolution authorizing CSR-1 filing
• Authorized signatory must have DSC
• PAN of authorized person required

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Step 3: Prepare Required Documents

Documents typically required:

• NGO registration certificate
• Trust deed / MOA & Bye-laws
• 12AB certificate
• 80G certificate
• PAN of NGO
• PAN & DSC of authorized signatory
• Governing body details

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Step 4: File Form CSR-1 on MCA Portal

• Login to MCA portal
• Select Form CSR-1
• Enter NGO and registration details
• Upload required documents
• Digitally sign using DSC

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Step 5: Verification by MCA

• MCA verifies details and documents
• Clarifications may be requested if discrepancies exist

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Step 6: Allotment of CSR Registration Number

Once approved:

• Unique CSR Registration Number is issued
• NGO is listed as CSR-eligible
• NGO can legally receive CSR funds

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Time Required for CSR-1 Approval

• Typical processing time: 7–15 working days
• May vary based on MCA scrutiny and accuracy of documents

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Post CSR-1 Filing Compliance

After registration, NGOs must:

• Use CSR funds strictly for approved projects
• Maintain separate project-wise records
• Provide utilization reports to corporates
• Ensure alignment with Schedule VII activities
• Continue 12AB and 80G compliance

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Common Reasons for CSR-1 Rejection

• Inactive or invalid 12AB / 80G registration
• Less than 3 years operational history
• Incorrect or mismatched details
• Improper authorization or DSC issues

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How Saving Mantra Helps NGOs

Saving Mantra provides end-to-end CSR-1 filing services, including:

• Eligibility assessment
• Documentation and resolution drafting
• MCA Form CSR-1 filing
• Follow-ups and error resolution
• CSR compliance and reporting support

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Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or professional advice. CSR laws and MCA procedures are subject to change. Readers are advised to consult qualified professionals before filing CSR-1. Saving Mantra shall not be responsible for decisions taken based on this information.

Saving Mantra Blog: Step-by-Step Process for Investment in Securities for NRI in India

Investing in Indian securities offers NRIs the opportunity to diversify portfolios, earn returns, and participate in India’s growing economy. NRIs can invest in equities, mutual funds, bonds, and derivatives subject to RBI/FEMA and SEBI guidelines.

This Saving Mantra guide explains the complete step-by-step process for NRIs to invest in securities in India, including account setup, documentation, investment rules, repatriation, and compliance.

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✔ Step 1: Understand the Investment Rules for NRIs

NRIs can invest in Indian securities via two types of accounts:

1. NRE Account (Non-Resident External)
   • Repatriable principal & interest
   • Fully convertible to foreign currency
2. NRO Account (Non-Resident Ordinary)
   • Non-repatriable without RBI approval (up to USD 1 million)
   • Suitable for income earned in India

Investment options available:

• Equity shares (listed on NSE/BSE)
• Mutual funds
• Government and corporate bonds
• Exchange Traded Funds (ETFs)
• Derivatives (if SEBI registered)

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✔ Step 2: Open Necessary Accounts

NRIs must open:

1. Bank Account (NRE/NRO) – For fund transfer
2. Demat Account – To hold securities in electronic form
3. Trading Account – Linked to Demat account for buying/selling securities

Banks and brokers often provide 3-in-1 NRI accounts integrating Bank + Demat + Trading accounts.

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✔ Step 3: Complete KYC (Know Your Customer)

KYC documents required for NRIs include:

• Passport (primary ID)
• Overseas address proof
• Indian address proof (if any)
• PAN card (mandatory)
• Photographs
• NRI declaration / PIS (Portfolio Investment Scheme) registration

Note: For investing in equities, NRIs must register under Portfolio Investment Scheme (PIS) with RBI through an AD Category-I bank.

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✔ Step 4: Register Under Portfolio Investment Scheme (PIS)

PIS allows NRIs to invest in Indian stock markets under RBI monitoring.

Procedure:

• Apply through AD Category-I bank
• Provide PAN, passport, NRI status proof
• Linked to NRE/NRO account
• Bank forwards application to RBI for approval

Once approved, NRI can invest in equities via trading account.

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✔ Step 5: Fund Your Accounts

• Transfer funds from overseas to NRE/NRO accounts
• Maintain documentation for FEMA compliance
• NRE account funds are fully repatriable, NRO subject to repatriation limits

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✔ Step 6: Start Investing in Securities

NRIs can now invest in:

• Equities – Buy/sell listed shares on NSE/BSE
• Mutual Funds – Invest in schemes allowed for NRIs
• Bonds/Debentures – Corporate or government
• ETFs & Derivatives – Eligible NRIs only

Tips:

• Monitor sector limits for FDI/FPI
• Avoid prohibited trades
• Check repatriation rules

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✔ Step 7: Repatriation of Funds

• NRIs can repatriate proceeds from NRE accounts freely
• NRO account repatriation allowed up to USD 1 million per financial year with Form 15CA/15CB
• Maintain bank records for RBI verification

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✔ Step 8: Taxation and Compliance

• Dividend income: Taxed at 20% (DTAA may apply)
• Capital gains tax:
  • Short-term: 15% on listed shares
  • Long-term: 10–20% depending on holding
• TDS applicable on dividends and gains
• File Indian income tax return if taxable income exists
• Maintain investment records for FEMA and RBI compliance

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✔ Step 9: Reporting Requirements

• RBI & AD Bank: For PIS transactions
• SEBI Compliance: Broker reports transactions
• Income Tax: TDS deducted and annual IT return

Non-compliance may lead to penalties and restrictions on trading.

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Conclusion

Investing in Indian securities is a lucrative opportunity for NRIs. By following the step-by-step process—account setup, PIS registration, investing via approved channels, and complying with FEMA and tax laws—NRIs can maximize returns safely while ensuring full compliance with Indian regulations.

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Disclaimer

This blog is for informational purposes only. It does not constitute legal, tax, or investment advice. Regulations under RBI, SEBI, and FEMA may change. NRIs should consult professionals before investing in Indian securities.

Introduction to Strike Off of Section 8 Company

A Section 8 Company, registered under the Companies Act, 2013, is formed for charitable or non-profit objectives. However, if such a company becomes inactive, non-operational, or no longer able to achieve its objectives, it may opt for strike off (closure) as per law.

The strike off process is governed by the Ministry of Corporate Affairs (MCA) and must be completed carefully to avoid penalties or future legal issues.

This Saving Mantra guide explains the step-by-step process for strike off of a Section 8 Company in India, including eligibility, documentation, procedure, and post-closure compliance.

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What Is Strike Off of Section 8 Company?

Strike off refers to:

• Removal of the company’s name from the Register of Companies (ROC)
• Legal closure of the Section 8 Company
• End of statutory compliance obligations after approval

Strike off is applicable only when the company has no assets, no liabilities, and no ongoing operations.

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When Can a Section 8 Company Apply for Strike Off?

A Section 8 Company can apply for strike off if:

• It has not commenced operations, or
• It has stopped operations for a prolonged period
• There are no pending litigations
• All statutory compliances are completed
• No assets or liabilities exist

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Eligibility Conditions for Strike Off

Before applying, the company must ensure:

• No pending ROC filings
• No outstanding loans or creditors
• No ongoing legal proceedings
• Proper closure of bank accounts
• Approval from members and directors

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Step-by-Step Process for Strike Off of Section 8 Company in India

Step 1: Conduct Board Meeting

• Convene a Board Meeting
• Pass resolution approving strike off
• Authorize director for filing application

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Step 2: Obtain Member Approval

• Conduct General Meeting (if required)
• Pass special resolution for strike off
• Record minutes and approvals

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Step 3: Settle Liabilities & Close Accounts

• Clear all statutory dues
• Settle creditors, if any
• Close bank accounts
• Prepare statement of accounts

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Step 4: Prepare Required Documents

Documents required include:

• Board and special resolutions
• Affidavit and indemnity bond by directors
• Statement of accounts certified by CA
• PAN of company
• MOA & AOA
• Copy of Section 8 license
• Latest financial statements

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Step 5: File Application with ROC

• File Form STK-2 on MCA portal
• Attach all supporting documents
• Pay prescribed government fees

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Step 6: ROC Verification & Public Notice

• ROC verifies application
• Public notice issued (if required)
• Objections invited within prescribed period

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Step 7: Strike Off Order

If no objections:

• ROC issues strike off order
• Company name removed from ROC register
• Section 8 Company stands legally dissolved

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Time Required for Strike Off

• Average timeline: 3 to 6 months
• Depends on document accuracy and ROC scrutiny

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Post Strike Off Compliance

After strike off:

• Preserve records for future reference
• Respond to any post-closure notices (if any)
• Directors remain liable for past actions

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Common Mistakes to Avoid

• Pending annual filings
• Outstanding liabilities or bank balances
• Incorrect financial statements
• Missing approvals or affidavits
• Filing without professional review

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Difference Between Strike Off & Winding Up

Particulars	Strike Off	Winding Up
Complexity	Simple	Complex
Cost	Low	High
Time	Shorter	Longer
Court Involvement	No	Yes

Strike off is preferred when the company is inactive and compliant.

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How Saving Mantra Helps

Saving Mantra provides end-to-end Section 8 Company strike off services, including:

• Eligibility and compliance review
• Board & member resolutions
• Preparation of STK-2 documents
• MCA filing & follow-ups
• Post-closure advisory support

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Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or professional advice. Procedures and requirements under the Companies Act and MCA rules are subject to change. Readers are advised to consult qualified professionals before initiating strike off. Saving Mantra shall not be responsible for decisions taken based on this content.

Saving Mantra Blog: Step-by-Step Process for Foreign Portfolio Investment (FPI) in India

Foreign Portfolio Investment (FPI) allows foreign investors, including NRIs, to invest in India’s equity, debt, and derivatives markets. FPIs bring capital inflows, improve market liquidity, and enable global investors to diversify portfolios.

This Saving Mantra guide explains the step-by-step process for investing as an FPI in India, including regulatory compliance, documentation, registration, and reporting.

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✔ Step 1: Understand FPI and Eligible Investors

FPI includes investment in:

• Indian stocks/equities
• Corporate and government bonds
• Mutual funds
• Derivatives and ETFs

Eligible Foreign Investors (Categories):

• Category I: Government and regulated entities (sovereign funds, pension funds)
• Category II: Broad-based funds, insurance companies, banks
• Category III: Private investment vehicles, hedge funds, corporate bodies

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✔ Step 2: Appoint an Indian Custodian

An FPI must appoint a SEBI-registered custodian to:

• Hold securities in demat form
• Monitor investments
• Submit regulatory reports

Popular custodians include: HSBC, Standard Chartered, Citi, ICICI Bank.

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✔ Step 3: Fulfill KYC and Documentation Requirements

KYC is mandatory for FPI registration with SEBI. Required documents:

• Certificate of Incorporation/Registration
• Memorandum & Articles of Association
• Audited financial statements (last 3 years)
• Board resolution authorizing investment
• Proof of identity and address of authorized signatories
• Foreign tax identification number

All documents must be notarized or apostilled, if applicable.

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✔ Step 4: SEBI Registration as FPI

• Submit Form A to SEBI via a SEBI-registered Designated Depository Participant (DDP)
• Submit KYC documents
• Pay registration fees (approx. USD 10,000 – 25,000 depending on category)
• SEBI issues FPI Registration Certificate (FPI-RC)

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✔ Step 5: Obtain PAN & Demat Account

• PAN (Permanent Account Number) required for all investments
• Open a demat account with the custodian for securities holding
• Open a bank account (FPI bank account) for remittance and settlements

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✔ Step 6: Register with Depository (NSDL/CDSL)

FPIs must register with National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL) to hold securities in dematerialized form.

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✔ Step 7: Fund Transfer & FEMA Compliance

• Remit funds from foreign country via AD Category-I Bank
• Comply with FEMA regulations for repatriation
• Bank issues Foreign Inward Remittance Certificate (FIRC)
• Funds are credited to FPI bank account

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✔ Step 8: Start Investing in Indian Markets

FPIs can now invest in:

• Equity shares listed on NSE/BSE
• Corporate bonds and government securities
• Mutual funds and ETFs
• Derivatives trading (if eligible and approved)

All trades must follow SEBI limits and investment caps per sector.

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✔ Step 9: Reporting and Compliance

FPIs must comply with:

• Monthly and quarterly reporting to SEBI and custodian
• Transaction reporting (buy/sell)
• Annual financial reporting
• Tax deduction at source (TDS) under Indian Income Tax Act
• Adherence to Investment limits per sector

Non-compliance can lead to penalties or suspension.

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✔ Step 10: Repatriation of Profits

• FPIs can repatriate profits, dividends, and sale proceeds freely via AD banks
• Must maintain records for tax and FEMA compliance

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Conclusion

Investing in India as an FPI provides foreign investors access to one of the fastest-growing emerging markets. With proper SEBI registration, custodian support, and compliance with FEMA and tax rules, FPIs can invest safely in equities, bonds, and derivatives.

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Disclaimer

This blog is for informational purposes only and does not constitute legal, tax, or investment advice. Regulatory and tax rules may change. Investors should consult qualified professionals before making FPI investments in India.

Saving Mantra Blog: Step-by-Step Process for LLP for NRI in India

A Limited Liability Partnership (LLP) is a hybrid business structure combining the flexibility of a partnership with the limited liability of a company. For NRIs, an LLP provides a simple, tax-efficient vehicle to invest and operate in India while minimizing personal risk.

This guide explains the complete step-by-step process, including eligibility, documents, registration, and compliance for NRIs forming an LLP in India.

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✔ Step 1: Check NRI Eligibility

NRIs or foreign citizens can be partners in an LLP in India if:

• At least one partner is a resident of India
• The LLP operates in sectors permitted under FEMA/FDI regulations
• Foreign investment complies with RBI/FEMA norms

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✔ Step 2: Obtain Digital Signature Certificate (DSC)

All designated partners must have a Class 3 Digital Signature Certificate (DSC) for filing forms with MCA.

Required Documents for DSC:

• Passport (for NRI/foreign partner)
• PAN (if available)
• Address proof (foreign passport + overseas address)
• Recent passport-size photo

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✔ Step 3: Apply for Director Identification Number (DIN)

NRIs as designated partners must obtain a DPIN/DIN through MCA SPICe+ portal.

• Fill DIR-3 form online
• Upload DSC
• Submit KYC documents

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✔ Step 4: Name Reservation of LLP

Choose a unique LLP name and submit Form RUN-LLP (Reserve Unique Name) to MCA:

• Name must be distinct
• Avoid restricted words like “National”, “Government”, etc.
• Approval is usually granted within 2–3 working days

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✔ Step 5: Prepare LLP Agreement

The LLP agreement defines:

• Profit sharing ratio
• Rights and duties of partners
• Operational and management procedures

Key points for NRIs:

• Specify capital contribution in INR
• Include repatriation clauses if applicable
• Agreement must be executed within 30 days of LLP incorporation

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✔ Step 6: File Incorporation Form with MCA (Form FiLLiP)

Submit Form FiLLiP (Form for Incorporation of LLP) online including:

• Name of LLP
• Partners’ details and DIN
• Registered office address in India
• Subscribers’ sheet
• Consent of partners

Documents to attach:

• Passport & address proof of NRI partner(s)
• Registered office proof
• DSC of designated partners
• PAN (if NRI already has)

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✔ Step 7: Receive Certificate of Incorporation (COI)

Once verified, MCA issues Certificate of Incorporation containing:

• LLP Identification Number (LLPIN)
• Date of incorporation
• Details of partners

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✔ Step 8: Execute LLP Agreement and File Form 3

Within 30 days of incorporation, file Form 3 to register the LLP Agreement with MCA.

• Attach the signed LLP Agreement
• DSC of all designated partners required
• Stamp duty paid as per state laws

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✔ Step 9: Apply for PAN & TAN

After LLP registration:

• PAN – Mandatory for tax purposes
• TAN – Required if LLP deducts TDS
• Apply online via NSDL portal or MCA assistance

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✔ Step 10: Open a Bank Account in India

• Open a current account in the LLP name
• Capital contribution from NRI partners can be remitted via AD Category-I bank
• Keep account compliant with FEMA regulations

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✔ Step 11: Post-Incorporation Compliance

NRIs and LLPs must adhere to:

• Filing Form 8 (Annual Return) – within 60 days from financial year-end
• Filing Form 11 (Statement of Account & Solvency) – within 60 days
• Statutory audit if turnover > ₹40 lakhs or contribution > ₹25 lakhs
• Maintain books of accounts and statutory registers
• GST registration if applicable

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✔ Step 12: Tax Compliance for NRI LLP Partners

• LLP is taxed at 30% corporate tax rate plus surcharge
• NRIs must declare share of profits in India if they are tax residents
• TDS on profit distribution may apply

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Conclusion

Registering an LLP in India is one of the most flexible options for NRIs to establish a business presence with minimal liability. Following the MCA process, obtaining DSC/DIN, and adhering to FEMA/FI norms ensures smooth incorporation and compliance.

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Disclaimer

This article is for educational purposes only and does not constitute legal or tax advice. Regulatory requirements, FEMA rules, and MCA norms may change. NRIs should consult professionals before incorporation.

Introduction to 12AB Registration

12AB Registration is mandatory for NGOs, charitable trusts, societies, and Section 8 companies to claim income tax exemption on surplus income under Sections 11 and 12 of the Income Tax Act, 1961.

The earlier 12AA registration system has been replaced with 12AB, introducing time-bound validity and periodic renewal to ensure transparency and accountability.

This Saving Mantra guide explains the step-by-step process for 12AB registration in India, covering eligibility, documentation, filing process, timelines, and post-registration compliance.

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What Is 12AB Registration?

12AB registration:

• Grants income tax exemption to eligible NGOs
• Is issued by the Income Tax Department
• Has limited validity (generally 5 years)
• Requires periodic renewal and compliance

Without 12AB registration, an NGO’s income becomes taxable.

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Who Should Apply for 12AB Registration?

12AB registration is required for:

• Charitable Trusts
• Registered Societies
• Section 8 Companies
• NGOs seeking 80G approval
• NGOs applying for CSR or government grants

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Benefits of 12AB Registration

• Exemption of income used for charitable purposes
• Eligibility to apply for 80G registration
• Increased donor and CSR credibility
• Legal recognition as a tax-exempt entity
• Long-term compliance stability

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Types of 12AB Registration

1. Provisional 12AB Registration

• For newly formed NGOs
• Valid for 3 years
• No activity proof required initially

2. Regular 12AB Registration

• For NGOs with existing activities
• Valid for 5 years
• Requires activity and financial records

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Eligibility Criteria for 12AB Registration

An NGO must:

• Be legally registered as Trust, Society, or Section 8 Company
• Have charitable objects only
• Not distribute profits or income
• Maintain proper books of accounts
• Use income strictly for charitable purposes

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Step-by-Step Process for 12AB Registration in India

Step 1: Ensure NGO Legal Registration

The NGO must be registered under:

• Indian Trusts Act
• Societies Registration Act
• Companies Act, 2013 (Section 8)

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Step 2: Prepare Required Documents

Commonly required documents include:

• NGO registration certificate
• Trust deed / MOA / Bye-laws
• PAN of NGO
• Details of trustees/directors
• Address proof of registered office
• Activity report (if applicable)
• Audited financial statements (if available)

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Step 3: Choose Applicable Form

• Form 10A – For provisional registration or first-time applicants
• Form 10AB – For regular registration or renewal

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Step 4: File Online Application

• Login to Income Tax e-filing portal
• Fill Form 10A or 10AB
• Upload supporting documents
• Submit application using DSC or EVC

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Step 5: Verification & Inquiry

The Income Tax Department may:

• Request additional documents
• Seek clarification on activities
• Examine genuineness of objectives

Prompt and accurate replies are essential.

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Step 6: Grant of 12AB Certificate

Once satisfied:

• 12AB registration order is issued
• Validity period mentioned clearly
• NGO becomes eligible for tax exemption

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Time Required for 12AB Registration

• Provisional registration: 15–30 days
• Regular registration: 1–3 months

Timelines may vary based on scrutiny.

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Post-12AB Registration Compliance

After obtaining 12AB registration, NGOs must:

• File income tax returns on time
• Maintain books of accounts and audit reports
• Intimate changes in objects or management
• Apply for renewal before expiry

Non-compliance may lead to cancellation of 12AB registration.

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Common Reasons for 12AB Rejection

• Non-charitable or vague objectives
• Incomplete documentation
• No genuine activities
• Financial inconsistencies
• Delay in filing replies or clarifications

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How Saving Mantra Helps NGOs

Saving Mantra provides end-to-end 12AB registration services, including:

• Eligibility assessment
• Documentation and drafting support
• Form 10A / 10AB filing
• Handling income tax notices
• Ongoing NGO compliance management

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Disclaimer

This article is for informational purposes only and does not constitute legal, tax, or professional advice. Income tax provisions and procedures are subject to change. Readers are advised to consult qualified professionals before applying for 12AB registration. Saving Mantra shall not be responsible for decisions taken based on this information.

Saving Mantra Blog: Step-by-Step Process for Branch Office for NRI in India

For Non-Resident Indians (NRIs) and foreign companies wishing to conduct business activities in India, establishing a Branch Office is an effective route. Unlike a Liaison Office, a Branch Office can earn income from permitted activities in India. This guide explains the entire step-by-step process for setting up a Branch Office in India for NRIs.

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✔ What is a Branch Office in India?

A Branch Office is an extension of a foreign company in India that allows specific revenue-generating activities while retaining the status of a foreign entity.

Permitted Activities

A Branch Office may engage in:

• Export/import of goods
• Professional consultancy services
• IT/software services
• Research work in business area
• Technical support services
• Representing the parent company in India
• Acting as buying/selling agent (permitted cases)
• Rendering services in project execution

Restricted Activities

A Branch Office cannot:

• Engage in retail trading
• Engage in manufacturing (except SEZ)
• Carry out real estate business
• Accept deposits

Manufacturing can be done via Special Economic Zones (SEZ) only.

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✔ Step 1: Check Eligibility Requirements

Before applying, ensure the foreign company meets:

• Profitability Track Record: At least 5 years
• Net Worth: Minimum USD 100,000 (certified by CPA/CA)

NRIs acting via foreign companies can also apply under these norms.

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✔ Step 2: Determine Approval Route

A Branch Office requires approval from the Reserve Bank of India (RBI) through one of the following routes:

• Automatic Route: For low-risk sectors
• Government + RBI Route: For sensitive sectors or if parent company is from country of concern

Approvals are processed through an Authorized Dealer Category-I Bank (AD Bank).

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✔ Step 3: Arrange Required Documentation

All foreign-issued documents must be notarized/apostilled/consularized.

Required Documents:

• Certificate of Incorporation/Registration
• Memorandum & Articles of Association
• Audited financial statements (last 5 years)
• Net worth certificate from CPA/CA
• Board Resolution authorizing Branch Office setup
• Proposed Indian office address proof
• KYC documents of parent company
• Details of business operations and objectives
• Banker’s report from parent company

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✔ Step 4: File Application Using FNC Form

The applicant must submit Form FNC to the Authorized Dealer Bank, which reviews and forwards the application to RBI.

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✔ Step 5: Obtain RBI Approval

If approved, RBI issues an Approval Letter specifying:

• Validity period
• Allowed activities
• Operational conditions

Only after approval can the Branch Office legally start operations.

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✔ Step 6: Open Bank Account in India

The Branch Office must open a current account, through which:

• Business receipts can be credited
• Business expenses can be paid

Unlike a Liaison Office, a Branch Office can generate revenue in India.

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✔ Step 7: Register with MCA as Foreign Company

Within 30 days of establishment, registration with Ministry of Corporate Affairs (MCA) is mandatory through:

• Form FC-1
• Attach RBI approval and corporate documents

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✔ Step 8: Apply for PAN & TAN

Every Branch Office must apply for:

• PAN (Permanent Account Number) – tax registration
• TAN (Tax Deduction Number) – for withholding tax on payments

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✔ Step 9: GST & Other Local Registrations (If Applicable)

Depending on business activity, the Branch Office may require:

• GST Registration
• Professional Tax Registration
• Shops & Establishment Act registration

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✔ Step 10: Annual Compliance Requirements

A Branch Office must comply with:

RBI Compliance:

• Annual Activity Certificate (AAC) by Chartered Accountant
• Submission to RBI & AD Bank

MCA Compliance:

• Filing of annual financials
• Annual return under Companies Act

Income Tax Compliance:

• Filing of IT return if taxable income exists
• Maintenance of books of accounts
• Statutory audits (if applicable)

Since Branch Offices can earn income, they are taxed at corporate tax rates.

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✔ Step 11: Closure/Extension Procedures

To close a Branch Office, NOC is required from:

• Authorized Dealer Bank
• Income Tax Department
• RBI

After settling liabilities, balances may be repatriated subject to FEMA rules.

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Conclusion

Setting up a Branch Office is a strong option for NRIs and foreign companies who want commercial exposure in India without fully incorporating a subsidiary. With proper documents, RBI approval, and ongoing compliance, the process is structured and manageable.

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Disclaimer

This blog is for informational purposes only. Regulatory norms may change. Please consult a legal, tax, or compliance expert before initiating the process.

Saving Mantra Blog: Step-by-Step Process for Liaison Office for NRI in India

NRIs and foreign companies often seek to explore business opportunities in India without engaging in commercial operations. Establishing a Liaison Office is the most suitable route for this purpose. It allows representation in India without generating income locally. This guide explains the complete step-by-step process for NRIs to set up a Liaison Office in India.

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✔ What is a Liaison Office?

A Liaison Office acts as a communication channel between the foreign parent entity and Indian stakeholders. It cannot undertake commercial, trading, or industrial activities in India.

Permitted Activities

A Liaison Office may:

• Facilitate communication between parent company & parties in India
• Promote import/export from/to India
• Represent parent company in India
• Promote technical/financial collaborations
• Act as a buying/selling agent (without actual trading)

Restricted Activities

A Liaison Office cannot:

• Earn income in India
• Undertake commercial, trading, or manufacturing
• Invoice for services locally

All expenses must be funded through inward remittance from the parent company.

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✔ Step 1: Check Eligibility Requirements

NRIs or foreign entities must satisfy:

• A profitable track record of minimum 3 years
• Net worth of USD 50,000 or more (confirmed by auditor)

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✔ Step 2: Determine Approval Route

In India, Liaison Offices require RBI approval via:

• RBI Automatic Route: Most sectors covered
• RBI & Government Route: If parent entity is from a country of concern or sector-sensitive industry

Applications are submitted through AD Category-I Bank (Authorized Dealer Bank).

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✔ Step 3: Prepare Required Documents

Foreign documents must be apostilled/notarized in the home country.

Mandatory Documents Include:

• Certificate of Incorporation/Registration of Parent Company
• Memorandum & Articles of Association
• Latest audited financial statements (3 years)
• Net worth certificate from CPA/CA
• Board Resolution authorizing Liaison Office
• Details of office premises in India
• NRI passport copy (if individual)
• KYC documents of parent company from home banker

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✔ Step 4: File Application via FNC Form

The applicant must file Form FNC (Foreign Nationals Company) through the Authorized Dealer Bank, which forwards it to the RBI for approval.

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✔ Step 5: Obtain RBI Approval

Upon review, the RBI issues the Approval Letter, which specifies:

• Validity period (usually 3 years)
• Permitted activities
• Compliance conditions

Only after approval can the Liaison Office set up operations.

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✔ Step 6: Open Bank Account in India

The Liaison Office must open:

• Non-Interest Bearing Current Account

All operational expenses must be funded through inward remittances from the parent company.

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✔ Step 7: Register with ROC (Ministry of Corporate Affairs)

Within 30 days of RBI approval, the Liaison Office must register as a Foreign Company with ROC using:

• Form FC-1 (filing with MCA)
• Filing of RBI approval letter
• Documentation details of authorized representatives

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✔ Step 8: Obtain PAN & TAN

The Liaison Office must apply for:

• PAN (Permanent Account Number)
• TAN (Tax Deduction & Withholding Account Number) if tax deduction is required

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✔ Step 9: Annual Compliance Requirements

A Liaison Office must comply with:

RBI Compliances:

• Annual Activity Certificate (AAC) from CA
• Filing with RBI & Authorized Dealer Bank

MCA Compliances:

• Financial statements filing
• Annual return under Companies Act

Income Tax Compliances:

• Filing of returns if applicable
• Maintaining books of accounts
• Statutory audits if required

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✔ Step 10: Closure/Extension of Liaison Office

Before the expiry of the approval period, NRIs can apply for:

• Extension, or
• Closure (after clearing liabilities and audits)

Closure requires NOC from:

• AD Bank
• RBI
• Income Tax Department

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Conclusion

Setting up a Liaison Office in India is a structured process that enables NRIs and foreign companies to establish a non-commercial presence. With proper documentation, RBI approvals, and annual compliance, NRIs can efficiently engage with the Indian market.

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Disclaimer

This article is for educational purposes only. Regulatory requirements may change. Please consult a qualified professional before making legal, tax, or compliance decisions.