Establishment of foreign liaison, branch and project offices requires Reserve Bank approval and compliance with activity, reporting and closure rules. Establishment and regulation of foreign entities' offices in India require prior Reserve Bank approval through designated AD Category I banks, assessed via Reserve Bank or Government Routes based on sectoral FDI permission. The RBI considers track record and net worth thresholds, permits letters of comfort from parents for subsidiaries, and assigns a Unique Identification Number; approved offices must obtain PAN. Liaison Offices are limited to non income liaison functions and renewable by AD banks; Branch Offices may undertake specified commercial activities but not retail trading or manufacturing outside SEZ permissions. Project Offices qualify under funding or sanctioning criteria and may maintain restricted foreign currency accounts. Annual Activity Certificates and audited accounts, AD bank scrutiny, and prescribed closure documentation are mandatory for compliance and remittance of profits.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Establishment of foreign liaison, branch and project offices requires Reserve Bank approval and compliance with activity, reporting and closure rules.
Establishment and regulation of foreign entities' offices in India require prior Reserve Bank approval through designated AD Category I banks, assessed via Reserve Bank or Government Routes based on sectoral FDI permission. The RBI considers track record and net worth thresholds, permits letters of comfort from parents for subsidiaries, and assigns a Unique Identification Number; approved offices must obtain PAN. Liaison Offices are limited to non income liaison functions and renewable by AD banks; Branch Offices may undertake specified commercial activities but not retail trading or manufacturing outside SEZ permissions. Project Offices qualify under funding or sanctioning criteria and may maintain restricted foreign currency accounts. Annual Activity Certificates and audited accounts, AD bank scrutiny, and prescribed closure documentation are mandatory for compliance and remittance of profits.
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