Problems relating to Trade and Investment on India

4. Restrictions on withdrawal of operations
Issue	Issue details	Requests	Reference

(1) Complex and Delayed Procedures in Closure of Representative Office of Expatriates	- The procedures are too complex and time consuming for closure of local representative office established to conduct feasibility study for local entry after establishment of the local corporation.	- It is requested that GOI streamlines the procedural requirements and cuts down the time required for completing the requisite procedures.
	(Action) - While it is legally possible to close business or to liquidate operation, the procedures involving the court's intervention abound with problems and would not proceed smoothly. In general, the retreat by closure of the local corporation necessitates court liquidation or self-liquidation. In each case, it is necessary to complete the requisite procedures at the local high court of competent jurisdiction, at the expense of much time and cost. However, closure of representative office or branch office is comparatively less difficult than that of the locally incorporated legal entity. A simple submission suffices to the AD category-I bank of certain set of requisite documents designated by RBI.