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Approval of the Reserve Bank in certain cases for establishment - FEMA Ready Reckoner - FEMAExtract Regulation 5 - 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 Approval of the Reserve Bank in certain cases for establishment of branch office, liaison office or project office or any other place of business in India Any application from a person resident outside for opening of a branch office or a liaison office or a project office or any other place of business in India shall require prior approval of Reserve Bank in the following cases where:- the applicant is a citizen of or is registered/incorporated in [ Clause (a) ] Pakistan; (For Pan India) the application is for opening a liaison, branch or project office in [ Clause (b) ] Jammu and Kashmir, North East region and Andaman and Nicobar Islands; then required prior approval from reserve bank if the applicant is a citizen of or is registered/incorporated in Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau. If principal business of the applicant falls in the four sectors namely [ Clause (c) ] Defence, Telecom, Private Security and Information; and Broadcasting: Exception :- No need approval of the Reserve Bank of India In case where Government approval or license/permission by the concerned Ministry/Regulator has already been granted. In the case of proposal for opening a project office relating to defence sector, no separate reference or approval of Government of India shall be required if the said non-resident applicant has been awarded a contract by/entered into an agreement with the Ministry of Defence or Service Headquarters or Defence Public Sector Undertakings. Following mention below applicant is required approval form Reserve bank [ Clause (d) ] Non-Government Organisation of a foreign government , Non-Profit Organisation of a foreign government, Body/Agency/Department of a foreign government . Exception If above mention entity is engaged , partly or wholly, in any of the activities covered under Foreign Contribution (Regulation) Act, 2010 (FCRA) , then only obtain a certificate of registration under the said Act and No need to require seek permission under this regulation . Such applications shall be forwarded to Reserve Bank, Foreign Exchange Department, Central Office Cell, New Delhi by the Authorised Dealer Category-I bank and be considered in consultation with the Government of India.
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