Establishment of Liaison/ Branch/ Project Offices in India by Foreign Entities
This Master Circular outlines the guidelines for foreign entities to establish liaison, branch, or project offices in India.
General Criteria: Foreign entities can establish offices in India through the Reserve Bank route or Government route, subject to certain track record requirements.
Liaison Office: A liaison office can be established to represent the parent company in India, but it cannot engage in any commercial activities.
Branch Office: A branch office can be established to undertake specific business activities, subject to approval from the Reserve Bank.
Project Office: A project office can be established for a specific project, and it can open a foreign currency account and report to the Reserve Bank.
Reporting Requirements: Branch and liaison offices are required to submit periodic reports to the Reserve Bank, and project offices have additional reporting requirements.
Closure of Offices: The closure of branch, liaison, or project offices requires prior approval from the Reserve Bank.
Other Conditions: Foreign entities must comply with various general conditions, including those related to taxation, employment, and foreign exchange transactions.
Appendix: The Master Circular includes a list of notifications and circulars consolidated in this document.
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Download: Master Circular on Establishment of Liaison / Branch /Project Offices in India by Foreign Entities