Regulation 3 - Prohibition against establishing branch or office in India - Foreign Exchange Management (Establishment In India of Branch Or Office or Other Place of Business) Regulations, 2000

3. Prohibition against establishing branch or office in India:- No person resident outside India shall, without prior approval of the Reserve Bank, establish in India a branch or a liaison office 1 (***) or any other place of business by whatever name called: Provided that no approval shall be necessary for a banking company, if such company has obtained necessary approval under the provisions of the Banking Regulation Act, 1949. 2 Provided that no approval shall be necessary from RBI for a company to establish a branch/unit in Special Economic Zones (SEZs) to undertake manufacturing and service activities. Provided further that: (I) such units are functioning in those sectors where 100 per cent FDI is permitted. (II) such units comply with part XI of the Companies Act (Section 592 to 602), (III) such units function on a stand-alone basis, (IV) in the event of winding-up of business and for remittance of winding-up proceeds, the branch shall approach an Authorised Dealer in Foreign Exchange with the documents except (A) listed in Regulation 6(1)(iii) of Notification No. FEMA 13/2000-RB dated 3rd May, 2000. 3 Provided further that no approval shall be necessary for an insurance company, 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, for establishing a Liaison Office in India. ************************** Note : 1. The words, or a Project Office has been deleted vide Notification No. 095/2003 dated 2/7/2003 2. Has been added vide Notification No. 102/2003 dated 3/10/2003 3. Has been inserted vide Notification No. 134/2005 dated 7/5/2005