Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) in India by Foreign Entities
The Reserve Bank of India (RBI) has issued a Master Direction outlining the guidelines for foreign entities to establish a Branch Office (BO), Liaison Office (LO), or Project Office (PO) in India.
The direction provides general criteria for establishment, including the requirement for prior approval from the RBI.
The procedure for applying involves submitting an application to the RBI, along with necessary documents and information.
Once approved, the BO/LO/PO must open a bank account with an authorized dealer bank in India.
Annual Activity Certificates must be submitted by the BO/LO/PO, and the validity period of LO and PO approvals can be extended.
Registration with local police authorities is mandatory, and applications for additional offices and activities can be made.
The RBI also provides guidelines for the extension of fund and non-fund based facilities, remittance of profit/surplus, and closure of BO/LO/PO.
In the event of closure, the transfer of assets of BO/LO/PO is subject to certain conditions.
The Master Direction aims to provide a comprehensive framework for foreign entities establishing a presence in India.
Chat with the Master Direction: