Prior Approval is needed for establishment of LO /BO/PO in India from companies registered in Hong Kong and Macau.

Clarification- Establishment of Liaison Office/ Branch Office/ Project Office in India by  Foreign Entities- General Permission- 

Prior Approval is needed for establishment of LO /BO/PO in India from companies registered in Hong Kong and Macau.
 
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.