Establishment of Branch Office (BO)/Liaison Office (LO) in India by Foreign Entities - Eligibility Criteria and Procedural Guidelines

Branch and Liaison Office eligibility: prior Reserve Bank approval required with prescribed documentation and due diligence.

Prior Reserve Bank approval is required for establishment of a Branch Office or Liaison Office in India, considered under the Reserve Bank Route (sectors permitting 100% FDI under automatic route) or the Government Route (sectors not permitting 100% FDI automatically). Applications must be submitted in Form FNC through a designated AD Category I bank which must perform due diligence and forward recommendations. Additional criteria include prescribed track record and minimum net worth, with Letter of Comfort permitted from parent companies. A Unique Identification Number will be allotted and BOs/LOs must obtain PAN and comply with prescribed procedural, activity, extension and winding-up requirements.