ESTABLISHMENT OF BRANCH OFFICE (BO)/ LIAISON OFFICE (LO)/ PROJECT
OFFICE (PO) OR ANY OTHER PLACE OF BUSINESS IN INDIA BY FOREIGN ENTITIES
In the present globalized scenario, where majority of businesses are operating internationally, it is inevitable for global players to set up place of business in various countries across the globe. In India setting up of place of business by foreign entity is governed by the provisions of FEMA. 1999. In this article, we will discuss the key provisions pertaining to establishment of place of business in India by foreign entity.
A Branch Office ("BO") is one of the models for a foreign company to enter India and understand the Indian market with a very strict control by the Reserve Bank of India (RBI), as it does allow the foreign companies to test and do business in India; subject to certain conditions.
Applications from foreign companies (a body corporate incorporated outside India, including a firm or other association of individuals) for establishing Branch Office/ Liason Office/ Project Office, hereinafter referred to as BO/PO/LO, in India shall be considered by the AD Category-I bank as per the guidelines given by Reserve Bank of India (RBI).