RBI Circular on ‘Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission’

RBI Circular on ‘Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission’

1. The Reserve Bank of India issued a Circular on ‘Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission’ on January 15, 2014. The web-link of the said Circular is as below for ready reference:
https://rbidocs.rbi.org.in/rdocs/Notification/PDFs/93APDIR150114.pdf

2. Highlights of said Circular are as below:
A.P. (DIR Series) Circular No. 93 dated January 15, 2014 issued by the Reserve Bank of India, Foreign Exchange Department regarding ‘Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by Foreign Entities- General Permission’

In terms of 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, 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 RBI.

It is clarified that the provisions of Regulation 4 of Notification No. FEMA 22/2000-RB dated 3rd May 2000, ibid, 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 RBI.

 

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