Reserve Bank Of India
A. P. (DIR Series) Circular No. 31
September 17, 2012
To
All Category-I Authorised Dealer Banks
Madam / Sir,
Establishment of Liaison Office (LO) / Branch Office (BO) / Project Office (PO)
in India by Foreign Entities – Clarification
Attention of Authorised Dealer Category – I banks is invited to
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 a person
resident outside India requires prior approval of the Reserve Bank for
establishing LO / BO in India.
- In terms of
Notification No FEMA 95/2000-RB dated July 02, 2003 general
permission is granted to a foreign company to open project office in India
provided it has secured from an Indian company, a contract to execute a project
in India, and subject to satisfying certain other criteria.
- It is clarified that permission to establish offices, in India by foreign
Non-Government Organisations/Non-Profit Organisations/Foreign Government
Bodies/Departments, by whatever name called, are under the Government Route as
specified in
A. P. (DIR Series) Circular No. 23 dated December 30, 2009.
Accordingly, such entities are required to apply to the Reserve Bank for prior
permission to establish an office in India, whether Project Office or otherwise.
- AD Category - I banks may bring the contents of this circular to the notice
of their constituents/customers concerned.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions / approvals, if any, required under any
other law.
Yours faithfully,
(Rudra Narayan Kar)
Chief General Manager
RBI/2012-13/211