<h1>Foreign Companies Need RBI Approval to Open Branch Offices in India; Restrictions on Activities Apply.</h1> A foreign company wishing to open a branch office in India must obtain prior permission from the Reserve Bank of India (RBI). These offices can engage in specific activities such as exporting or importing goods, providing consultancy services, conducting research, and promoting collaborations. However, they cannot engage in manufacturing activities directly but may subcontract them. The branch office must meet expenses through funds from abroad or income generated in India and cannot accept deposits. Applications to open a branch must be submitted to the RBI, detailing the company's global operations, proposed activities in India, and any foreign exchange implications. Profits can be remitted outside India, subject to Indian taxes and RBI guidelines.