Establishment of Branch/Liaison/Project Offices in India by Foreign Entities
The Reserve Bank of India (RBI) has outlined the guidelines for foreign entities to establish liaison, branch, or project offices in India.
General Criteria: Foreign entities must meet certain criteria, including having a good track record, net worth, and a letter of comfort from their parent company.
Liaison Office: Permissible activities include representing the parent company, promoting export/import, and acting as a communication channel. Liaison offices of foreign insurance companies and banks have additional requirements. The approval for liaison offices can be extended.
Branch Office: Permissible activities include undertaking business activities, and branch offices in Special Economic Zones (SEZs) have specific guidelines. Branches of foreign banks are also subject to specific regulations.
Application and Reporting: Foreign entities must apply to the RBI for undertaking additional activities or opening additional branch/liaison offices. Branch and liaison offices must submit regular reports to the RBI.
The guidelines aim to regulate and facilitate the establishment of foreign entities in India, ensuring compliance with Indian laws and regulations.
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Download: Master Circular on Establishment of Liaison / Branch / Project Offices in India by Foreign Entities