Home > Regions > Asia Pacific > RBI’s clarification on Establishment of Liaison Office/Branch Office/Project Office in India by Foreign Entities

RBI’s clarification on Establishment of Liaison Office/Branch Office/Project Office in India by Foreign Entities

Presently, in terms of the Foreign Exchange Management (Establishment in India of Branch or Office or other Place of Business) Regulations, 2000, no entity or person, being a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China is allowed to 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.

However, the RBI vide its A.P. (DIR Series) Circular No.93 dated January 15, 2014, has also added Hong King and Macau to the above list to control and regulate indirect entry of residents of China through Hong King and Macau.

Resultantly, 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 of the RBI.