Establishment of Liaison Office/Branch Office/ Project Office in India by Foreign Entities- General Permission - RBI Clarification
AS per Regulation 4 of Notification No.FEMA.22/2000-RB dated May 3, 2000 , viz., Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, as amended from time to time, in terms of which, no entity or person, being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China shall establish in India, a branch office or a liaison office or a project office or any other place of business by whatever name called, without the prior permission of the Reserve Bank.
RBI has clarified that the provisions of Regulation 4 of Notification No. FEMA 22/2000-RB dated 3rd May 2000, along with their specified conditions apply for entities from Hong Kong and Macau also.
Accordingly, applications from entities registered in / resident of Hong Kong and Macau, for establishment of Liaison/ Branch/ Project Offices or any other place of business by whatever name called shall require prior approval from Reserve Bank of India.
A P (DIR Series) CIRCULAR No. 93/RBI., Dated: January 15, 2014