RBI/FED/2015 -16/6 FED Master Direction No.10/2015 -16

master_directions · 1934 · State unknown

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Parent: THE RESERVE BANK OF INDIA ACT, 1934 (edb4b0bb51aeed408edafc1e5ca731cd0dbe73f6)

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RBI/FED/2015 -16/6 FED Master Direction No.10/2015 -16 To, All Authorised Dealer Category – I banks Dear Madam / Sir, Master Direction -Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) or any other place of business in India by foreign entities Establishment of branch office/ liaison office / project office or any other place of business in India by foreign entities is regulated in terms of Section 6(6) of Foreign Exchange Management Act, 1999 read with 1 Notification No. FEMA 22(R)/2016-RB dated March 31, 2016 . These Regulations are amended from time to time to incorporate the changes in the regulatory framework and published through amendment notifications. Within the contours of the Regulations, Reserve Bank of India also issues directions to Authorised Persons under Section 11 of the Foreign Exchange Management Act (FEMA), 1999. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/constituents with a view to implementing the regulations framed. 1 Notification No. FEMA 22/2000 -RB dated May 3, 2000, on Foreign Exchange Management (establishment in India of Branch or office or other place of business) Regulation was repealed and replaced by Notification No. FEMA 22(R)/2016-RB dated March 31, 2016 with effect from March 31, 2016. January 01, 2016 (Updated as on May 18, 2021) (Updated as on March 29, 2019) (Updated as on February 28, 2019) (Updated as on May 10, 2018) (Updated as on May 17, 2016) This Master Direction consolidates the existing instructions on the subject of "Establishment of branch office/ liaison office / project office or any other place of business in India by foreign entities " at one place. Reporting instructions can be found

Rule TOC

1 · Notification No. FEMA 22/2000 -RB dated May 3, 2000, on Foreign Exchange Management (establishment in India of Branch or office or other place of business) Regulation was repealed and replaced by Notification No. FEMA 22(R)/2016-RB dated March 31, 2016 with effect from March 31, 2016.

1 · General criteria

2 · The principal business of the applicant falls in the four sectors namely Defence, Telecom, Private Security and Information and Broadcasting. However, prior approval of Reserve Bank of India shall not be required in cases where Government approval or license/permission by the concerned Ministry/Regulator has already been granted. Further, in the

2 · Modified vide Notification No. FEMA 22(R)(2) dated January 21, 2019 and AP (DIR Series) Circular No. 27 dated March 28, 2019. Prior to modification, it read as "The principal business of the applicant falls in the four sectors namely Defence, Telecom, Private Security and Information and Broadcasting. In the case of proposal for opening a PO relating to defence sector, no separate reference or approval of Government of India shall be required if the said non-resident applicant has been awarded a contract by/ entered into an agreement with Ministry of Defence or Service Headquarters or Defence Public Sector Undertakings. No separate approval is required from Reserve Bank of India for such cases only."

3 · Inserted vide Notification No. FEMA 22(R)(1)/2018-RB dated August 31, 2018 and AP (DIR Series) Circular No 20 dated February 27, 2019 .

2 · Procedure for applying

3 · Opening of bank account by BO/LO/PO

4 · Annual Activity Certificate by BO/LO/PO

5 · Extension of validity period of the approval of LO and PO

6 · Registration with police authorities

7 · Application for additional offices and activities

8 · Extension of fund and non -fund based facilities

9 · Remittance of profit/surplus

10 · Closure of BO/LO/PO

11 · Transfer of assets of BO/LO/PO

12 · Guidance note for the AD Category-I bank

4 · Inserted vide Notification FEMA 22(R)(1)/2018-RB dated August 31, 2018 and AP (DIR Series) Circular No 20 dated February 27, 2019 .

5 · Inserted vide AP (DIR Series) Circular No 07 dated November 23, 2020 .