Regulation 3 - Prohibition against opening a branch office or a liaison office or a project office or any other place of business in India - Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016

3. Prohibition against opening a branch office or a liaison office or a project office or any other place of business in India No person resident outside India shall without prior approval of the Reserve Bank open in India a branch office or a liaison office or a project office or any other place of business by whatever name called except as laid down in these Regulations. Provided that a. A banking company resident outside India shall not require any approval under these Regulations for establishing any office in India if such company has obtained necessary approval under the provisions of the Banking Regulation Act, 1949. b. An insurance company resident outside India shall not require any approval under these Regulations for establishing any office in India if such company has obtained approval from the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999. c. A company resident outside India shall not require any approval under these Regulations to establish a branch office in the Special Economic Zones (SEZs) to undertake manufacturing and service activities, subject to the conditions that: i) such branch offices are functioning in those sectors where 100% FDI is permitted; ii) such branch offices comply with Chapter XXII of the Companies Act, 2013 ; and iii) such branch offices function on a stand-alone basis.