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

33 A. P. (DIR Series) Circular No. 23, dated December 30, 2009

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

This circular places in public domain the eligibility criteria and procedural guidelines for the establishment of Branch Offices and Liaison Offices by foreign entities in India.

The broad criteria regarding eligibility for opening of BO and LO, documents required, etc., are given in Annex A. The scope of activities permitted and other procedural guidelines (additional offices / activities, renewal, closure) are given in Annex B.

Application for establishing a BO/LO has to be made to designated AD Category – I Bank in Form FNC given in Annex C. The same, along with the relevant documents, will be submitted by the Bank to the RBI. However, applications from foreign banks and insurance companies will continue to be received directly by the RBI. Comfort letter to be given by applicants who do not satisfy the eligibility criteria and are subsidiaries of other companies is given in Annex D.

All BO and LO (new as well as existing) will be allotted a Unique Identification Number which needs to be quoted in all references to RBI.