Date: 2019-01-21Category: Not ApplicableState: Union GovernmentCountry: 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) (Amendment) Regulations, 2019
**Summary:**
This notification, issued by the Reserve Bank of India (RBI), amends the 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. Formally titled "Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Amendment Regulations, 2019" (Notification No. FEMA 22(R)/2019-RB dated January 21, 2019), the amendment modifies Regulation 5, clause (c).
The key change eliminates the requirement for RBI approval when the establishment of a branch office, liaison office, project office, or other place of business has already received approval, license, or permission from the relevant Government Ministry or Regulator.
Specifically, for project offices related to the defense sector, no separate reference to or approval from the Government of India is needed if the non-resident applicant has been awarded a contract by or entered into an agreement with the Ministry of Defence, Service Headquarters, or Defence Public Sector Undertakings.
The amendment comes into effect on the date of its publication in the official Gazette.
The original regulations were published in the Official Gazette vide G.S.R. No. 384(E) dated March 31, 2016.
R.K. Moolchandani, Chief General Manager, Reserve Bank of India, issued the notification from the Foreign Exchange Department, Central Office, Mumbai 400 001.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and foreign exchange.
Foreign Exchange Management Act, 1999: An act of the Parliament of India to consolidate and amend the law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market 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: Regulations pertaining to the establishment of foreign entities' offices in India, as notified by the Reserve Bank of 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 Amendment Regulations, 2019: Amendment regulations to the 2016 regulations concerning the establishment of foreign entities' offices in India.
Ministry Regulator: Refers to any Ministry or Regulator in the Government, whose approval or permission is required.
Government of India: The Union Government of India
Ministry of Defence: A ministry of the Government of India responsible for defence
Defence Public Sector Undertakings: Public sector companies in India involved in the defence industry.
RESERVE BANK OF INDIA
FOREIGN EXCHANGE DEPARTMENT
CENTRAL OFFICE
MUMBAI 400 001
Notification No. FEMA 22 (R)/(2)/2019-RB January 21, 2019
Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office
or any other place of business) (Amendment) Regulations, 2019
In exercise of the powers conferred by sub-section (6) of Section 6 of the Foreign Exchange Management Act, 1999 (42
of 1999) the Reserve Bank of India makes the following amendment in the 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 [Notification No. FEMA 22(R)/RB-2016 dated March 31, 2016], namely:
1. Short Title & Commencement:-
(i) These Regulations may be called the Foreign Exchange Management (Establishment in India of a branch office or a
liaison office or a project office or any other place of business) (Amendment) Regulations, 2019.
(ii) They shall come into force from the date of publication in the official Gazette.
2. Amendment to Regulation 5
In Regulation 5, in clause (c) for the existing proviso, the following shall be substituted namely:
“Provided that approval of the Reserve Bank of India is not required in case where Government approval or
license/permission by the concerned Ministry/ Regulator has already been granted. Further, 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.”
(R.K.Moolchandani)
Chief General Manager
Foot Note:-
The Principal Regulations were published in the Official Gazette vide G.S.R. No.384 (E) dated March 31, 2016.