Master Direction - Establishment of Branch Office (BO)/ Liaison Office (LO)/ Project Office (PO) or any other place of business in India by foreign entities

Question 1

Prior approval of Reserve Bank of India shall not be required in cases where ………………………………………..has already been granted.

Answer 1

Government approval or license/permission by the concerned Ministry/Regulator

Question 2

The non-resident entity applying for a BO in India should have a financially sound track record such as.

Answer 2

profit making track record for 5 years and net worth of at least USD 100,000

Question 3

The non-resident entity applying for a LO in India should have a financially sound track record such as.

Answer 3

profit making track record for 3 years and net worth of at least USD 50,000

Question 4

The validity period of an LO is generally for ………………

Answer 4

three years (can be further extended by 3 years),
except in the case of Non-Banking Finance Companies (NBFCs) and those entities engaged in construction and development sectors, for whom the validity period is two years only (cannot be extended, need to be converted to JV or WOS).

Question 5

Project Offices can open ……………………………… type of Foreign Currency Accounts in India.

Answer 5

Non Interest bearing

Question 6

Applications for opening of LO/BO/PO also need to be forwarded to the General Manager, Reserve Bank of India, Central Office Cell, Foreign Exchange Department, 6, Sansad Marg, New Delhi - 110 001 if the principal business of the applicant falls in the four sectors namely ……………………….

Answer 6

Defence, Telecom, Private Security and Information and Broadcasting.