Section 3 in The Foreign Exchange Management (Establishment In India Of Branch Or Office Or Other Place Of Business) Regulations, 2000
3. Prohibition against establishing branch or office in India .-No person resident outside India shall, without prior approval of the Reserve Bank, establish in India a branch or a liaison office [* * *] or any other place of business by whatever name called:
[Provided that no approval shall be necessary from RBI for a company to establish a branch/unit in Special Economic Zones (SEZs) to undertake manufacturing and service activities:Provided further that--(i)such units are functioning in those sectors where 100 per cent. FDI is permitted,(ii)such units comply with Part XI of the Companies Act (sections 592 to 602),(iii)such units function on a stand-alone basis,(iv)in the event of winding-up of business and for remittance of winding-up proceeds, the branch shall approach an authorised dealer in Foreign Exchange with the documents except (A) listed in regulation 6(1)(iii) of Notification No. FEMA 13/2000-RB, dated 3rd May, 2000:][Provided that no approval shall be necessary for a banking company, if such company has obtained necessary approval under the provisions of the Banking Regulation Act, 1949:-Provided further that no approval shall be necessary for an insurance company, if such company has obtained approval from the Insurance Regulatory and Development Authority, established under section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999), for establishing a liaison office in India.] [ Added by G.S.R. 336(E), dated 7.5.2005 (w.r.e.f. 25.4.2000).]
