RBI/2013-14/447
A.P. (DIR Series) Circular No.93
January 15, 2014
To
All Authorised Dealer Category - I Banks
Madam / Dear Sir
Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in
India by
Foreign Entities- General Permission
Attention of Authorised Dealer Category –I (AD Category – I) banks is invited to
Regulation 4 of
Notification No. FEMA.22/2000-RB dated May 3, 2000, viz., Foreign
Exchange Management (Establishment in India of Branch or Office or other Place
of Business) Regulations, 2000, as amended from time to time, in terms of which,
no entity or person, being a citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, Iran or China shall 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 Reserve Bank.
- It is clarified that the provisions of Regulation 4 of
Notification No. FEMA
22/2000-RB dated 3rd May 2000, ibid, along with their specified conditions apply
for entities from Hong Kong and Macau also.
- Accordingly, 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 from
Reserve Bank of India.
- AD Category-I banks may bring the contents of this circular to the notice of
their constituents and customers concerned.
- Reserve Bank has since amended the subject Regulations accordingly through
the Foreign Exchange Management (Establishment in India of Branch or Office or
Other Place of Business) (Amendment) Regulations, 2013, which have been notified
vide
Notification No.FEMA.293/2013-RB dated November 12, 2013, vide
G.S.R.No.767(E) dated December 06, 2013.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 0f 1999) and
are without prejudice to permission / approvals, if any, required under any
other law.
Yours faithfully,
(C.D. Srinivasan)
Chief General Manager