Section 5 in The Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016
5. Approval of the Reserve Bank in certain cases for establishment of branch office, liaison office or project office or any other place of business in India.
- Any application from a person resident outside for opening of a branch office or a liaison office or a project office or any other place of business in India shall require prior approval of Reserve Bank in the following cases where(a)the applicant is a citizen of or is registered/incorporated in Pakistan;(b)the applicant is a citizen of or is registered/incorporated in Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau and the application is for opening a liaison, branch or project office in Jammu and Kashmir, North East region and Andaman and Nicobar Islands;(c)the principal business of the applicant falls in the four sectors namely Defence, Telecom, Private Security and Information and Broadcasting:[Provided that approval of the Reserve Bank of India is not required in case where Government approval or license/permission by the concerned Ministry/Regulator has already been granted. Further, in the case of proposal for opening a project office relating to defence sector, no separate reference or approval of Government of India shall be required if the said non-resident applicant has been awarded a contract by/entered into an agreement with the Ministry of Defence or Service Headquarters or Defence Public Sector Undertakings.] [Substituted by Notification No. G.S.R. 40(E), dated 21.1.2019 (w.e.f. 31.3.2016).](d)[ the applicant is a Non-Government Organisation, Non-Profit Organisation, Body/Agency/Department of a foreign government. However, if such entity is engaged, partly or wholly, in any of the activities covered under Foreign Contribution (Regulation) Act, 2010 (FCRA), they shall obtain a certificate of registration under the said Act and shall not seek permission under this regulation.] [Substituted by Notification No. G.S.R. 827(E), dated 31.8.2018 (w.e.f. 31.3.2016).]Such applications shall be forwarded to the Reserve Bank, Foreign Exchange Department, Central Office Cell, New Delhi by the Authorised Dealer Category-I bank and be considered in consultation with the Government of India.Format of the Letter of Comfort[See Regulation 4 (a)]The Authorised Signatory,(Address of the Authorised Dealer Category-I bank)Dear Sir,Sub: Application for establishment of branch / liaison office in India by our subsidiary / group company, M/s_________________________You may kindly refer to the application made by our subsidiary / group company, M/s_____________________________to your office for establishing branch / liaison office in India.
