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 and other criteria.
Liaison Office: A liaison office can undertake only liaison activities, such as representing the parent company, promoting exports, and gathering market information.
Branch Office: A branch office can undertake activities similar to the parent company, such as manufacturing, trading, or providing services.
Project Office: A project office can be established for a specific project, and its activities are limited to the project’s duration.
Application and Reporting: Foreign entities must apply to the Reserve Bank for permission to establish an office, and thereafter, submit periodic reports.
Closure: The closure of an office requires prior approval from the Reserve Bank.
Other Conditions: Foreign entities must comply with various other conditions, including opening a foreign currency account, reporting requirements, and additional reporting requirements.
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