Hong Kong and Macau Join Pak and China – Special RBI Permission
Required to Establish Office in India
[RBI
Circular No. 93 dated 15th January 2014]
Sub:
Clarification- Establishment of Liaison Office/ Branch Office/ Project Office
in India by Foreign Entities- General Permission
Attention
of Authorised Dealer Category –I (AD Category – I) banks is invited to Regulation
4 of Notification No.FEMA.22/2000-RB dated May 3, 2000, viz., Foreign Exchange
Management (Establishment in India of Branch or Office or other Place of
Business) Regulations, 2000, as amended from time to time, in terms of which,
no entity or person, being a citizen of Pakistan, Bangladesh, Sri Lanka,
Afghanistan, Iran or China shall establish in India, a branch office or a
liaison office or a project office or any other place of business by whatever
name called, without the prior permission of the Reserve Bank.
2. It is
clarified that the provisions of Regulation 4 of Notification No. FEMA
22/2000-RB dated 3rd May 2000, ibid, along
with their specified conditions apply for entities from Hong Kong and Macau
also.
3. Accordingly,
applications from entities registered in / resident of Hong Kong and Macau, for
establishment of Liaison/ Branch/ Project Offices or any other place of
business by whatever name called shall require prior approval from Reserve Bank
of India.
4. AD Category-I
banks may bring the contents of this circular to the notice of their
constituents and customers concerned.
5. Reserve Bank
has since amended the subject Regulations accordingly through the Foreign
Exchange Management (Establishment in India of Branch or Office or Other Place
of Business) (Amendment) Regulations, 2013, which have been notified vide Notification
No.FEMA.293/2013-RB dated November 12, 2013, vide G.S.R.No.767(E)
dated December 06, 2013.
6. The directions
contained in this circular have been issued under sections 10(4) and 11(1) of
the Foreign Exchange Management Act, 1999 (42 0f 1999) and are without
prejudice to permission / approvals, if any, required under any other law.