Foreign entities from specific countries need RBI approval to open offices in India under Regulation 4 of FEMR 2000.

Foreign entities from Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong, and Macau must obtain prior approval from the Reserve Bank of India (RBI) to establish liaison, branch, or project offices in India. This requirement is based on Regulation 4 of the Foreign Exchange Management Regulations, 2000, as amended. Authorised Dealer Category-I banks are instructed to inform their clients about this requirement. The RBI has amended the relevant regulations to include entities from Hong Kong and Macau, as notified in November 2013. These directions are issued under the Foreign Exchange Management Act, 1999.

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