Executive Summary:
This document contains amendments to 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. These amendments, titled 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," come into force on the date of their publication in the Official Gazette (January 21, 2019). The key change involves exceptions to the requirement for Reserve Bank of India (RBI) approval.
Key Points / Main Content:
* **General**
* These regulations are 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.
* The regulations came into force on January 21, 2019.
* **Amendment to Regulation 5**
* In Regulation 5, clause c, the existing proviso is substituted.
* RBI approval is not required if Government approval or license/permission by the concerned Ministry/Regulator has already been granted.
* For project offices relating to the defence sector, no separate Government of India approval is needed if the non-resident applicant has a contract/agreement with the Ministry of Defence, Service Headquarters, or Defence Public Sector Undertakings.
Impact Analysis:
* **Foreign Companies/Entities seeking to establish a Branch Office, Liaison Office, or Project Office in India:**
* *Impact:* Reduced need for RBI approval in cases where government approvals are already in place, particularly benefitting entities in the defence sector.
* *Action Required:* Assess whether their situation qualifies for the exemption from RBI approval based on existing government approvals or contracts with the Ministry of Defence.
* **Reserve Bank of India (RBI):**
* *Impact:* Reduced workload related to approving establishment requests, particularly in sectors where other government bodies are already providing oversight.
* *Action Required:* Implement the amended regulations and update internal processes to reflect the change in approval requirements.
* **Government Ministries/Regulators:**
* *Impact:* Their approvals or licenses now carry more weight in the establishment process for foreign entities.
* *Action Required:* Continue to coordinate with RBI and ensure clear communication regarding approvals granted to foreign entities.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the country's monetary policy and financial system.
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 issued by the Reserve Bank of India governing the establishment of foreign entities 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 Amendment Regulations, 2019: Amendment to the 2016 regulations concerning the establishment of foreign entities in India.
Mumbai, Maharashtra: City in India, location of the Central Office of the Foreign Exchange Department of the Reserve Bank of India.
Ministry of Defence: A ministry of the Government of India responsible for defense.
Service Headquarters: Headquarters of the Indian Armed Forces services.
Defence Public Sector Undertakings: Public sector companies in India involved in the defense industry.
jftLVªh laö Mhö ,yö&33004@99 REGD. NO. D. L.-33004/99
vlk/kj.k
EXTRAORDINARY
Hkkx II—[k.M 3—mi&[k.M (i)
PART II—Section 3—Sub-section (i)
izkf/dkj ls izdkf'kr
PUBLISHED BY AUTHORITY
la- 39] ubZ fnYyh] lkseokj] tuojh 21] 2019@ek?k 1] 1940
No. 39] NEW DELHI, MONDAY, JANUARY 21, 2019/MAGHA 1, 1940
भभभभााााररररततततीीीीयययय (cid:8)(cid:8)(cid:8)(cid:8)ररररज़ज़ज़ज़वववव (cid:11)(cid:11) (cid:11)(cid:11)बबबबकककक(cid:13)(cid:13)(cid:13)(cid:13)
((((ििििववववददददशशशशेेेे ीीीी मममम(cid:10)(cid:10)ुु(cid:10)(cid:10)ुु ाााा ििििववववभभभभाााागगगग))))
((((कककक(cid:15)(cid:15)(cid:15)(cid:15)(cid:10)(cid:10)(cid:10)(cid:10)ीीीीयययय ककककााााययययाााालल(cid:17)(cid:17)लल(cid:17)(cid:17) यययय))))
अअअअििििधधधधससससचचूूचचूू ननननाााा
मु(cid:3) बई, 21 जनवरी, 2019
सससस..ंं..ंं फफफफेेेेममममाााा.... 22222222((((आआआआरररर))))////((((2222))))////2222000011119999----आआआआररररबबबबीीीी
ििििववववददददशशेेशशेे ीीीी मममम(cid:21)(cid:21)ुु(cid:21)(cid:21)ुु ाााा (cid:22)(cid:22)(cid:22)(cid:22)बबबबधधंंधधंं ((((भभभभााााररररतततत मममम (cid:26)(cid:26) (cid:26)(cid:26)शशशशााााखखखखाााा ककककााााययययाााालल(cid:11)(cid:11)लल(cid:11)(cid:11) यययय अअअअथथथथववववाााा ससससपपंंपपंं कककक(cid:11)(cid:11)(cid:11)(cid:11) ककककााााययययाााालल(cid:11)(cid:11)लल(cid:11)(cid:11) यययय अअअअथथथथववववाााा पपपप(cid:8)(cid:8)(cid:8)(cid:8)ररररययययोोोोजजजजननननाााा ककककााााययययााााललल(cid:11)(cid:11)ल(cid:11)(cid:11) यययय अअअअथथथथववववाााा $$$$ककककससससीीीी (cid:22)(cid:22)(cid:22)(cid:22)ककककाााारररर ककककेेेे
ककककााााररररोोोोबबबबााााररररीीीी %%%%थथथथलललल कककक&&&& %%%%थथथथाााापपपपननननाााा)))) ((((ससससशशंंशशंं ोोोोधधधधनननन)))) ििििववववििििननननययययममममााााववववललललीीीी,,,, 2222000011119999
ससससाााा....ककककाााा....ििििनननन.... 44440000((((अअअअ))))....————िवदशे ी मु(cid:12)ा (cid:14)बंध अिधिनयम, 1999 (1999 का 42) क(cid:27) धारा 6 क(cid:27) उप-धारा (6) ारा
(cid:14)द! शि"य# का (cid:14)योग करत े ’ए भारतीय *रज़व, बक- िवदशे ी म(cid:12)ु ा (cid:14)बंध (भारत म . शाखा काया,लय अथवा संपक, काया,लय
अथवा प*रयोजना कायाल, य अथवा 4कसी भी (cid:14)कार के कारोबारी 5थल क(cid:27) 5थापना) िविनयमावली, 2016 [4दनाकं 31 माच ,
2016 को जारी अिधसूचना सं.फेमा. 22(आर)/आरबी-2016] म .िन9िलिखत संशोधन करता ह,ै अथात, ् :-
1111.... ससससििंंििंं’’’’(((( ननननाााामममम एएएएवववव ंं ंं(cid:22)(cid:22)(cid:22)(cid:22)ााााररररंंंंभभभभ ::::----
(i) य े िविनयम िवदशे ी म(cid:12)ु ा (cid:14)बंध (भारत म. शाखा काया,लय अथवा संपक, काया,लय अथवा प*रयोजना काया,लय
अथवा 4कसी (cid:14)कार के कारोबारी 5थल क(cid:27) 5थापना) (संशोधन) िविनयमावली, 2019 कहलाएगं े ।
(ii) वे सरकारी राजप< म. उनके (cid:14)काशन क(cid:27) तारीख से लागू ह#गे ।
2222.... ििििववववििििननननययययमममम 5555 मममम (cid:26)(cid:26) (cid:26)(cid:26)ससससशशशशंंंं ोोोोधधधधनननन
िविनयम 5 के खंड (सी) म,. मौजूदा परंतकु के िलए िन9िलिखत को (cid:14)ित5थािपत 4कया जाएगा, अथा,त :्
385 GI/2019 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
"बशतB 4क उन (cid:14)5ताव# पर भारतीय *रज़व, ब-क से अलग से अनमु ोदन लेने क(cid:27) आवDयकता नहE ह,ै िजFह . सरकारी
अनमु ोदन अथवा संबंिधत मं<ालय/िविनयामक से लाइसेFस/ अनमु ित दी गई ह।ै इसके अलावा, रJा Jे< स ेसंबिFधत
प*रयोजना काया,लय खोलन े के (cid:14)5ताव संबंधी उन मामल# म .भारत सरकार स ेअलग स ेसंदभ , अथवा अनमु ोदन (cid:14)ाK
करने क(cid:27) आवDयकता नहE होगी, जहां संबिFधत अिनवासी आवेदक को रJा मं<ालय अथवा सLव,स हडै Mाट,र अथवा
रJा Jे< के सावज, िनक उपOम ारा कोई कांPैQट/करार (cid:14)दान 4कया गया ह ै/ करारबR 4कया गया ह।ै "
[फा. सं. 16/13/EM/2014-Part-I]
आर. के. मूलचदं ानी, मुSय महा(cid:14)बंधक
पपपपाााादददद----(cid:8)(cid:8)(cid:8)(cid:8)टटटट----पपपपणणणणीीीी :::: मूल िविनयमावली 31 माच, 2016 को सा.का.िन. स.ं 384 (अ) भाग-II, खंड 3, उप-खंड (i) के तहत
सरकारी राजप< म .(cid:14)कािशत 4कया गया ।
RESERVE BANK OF INDIA
(Foreign Exchange Department)
(CENTRAL OFFICE)
NOTIFICATION
Mumbai, the 21st January, 2019
No. FEMA 22 (R)/(2)/2019-RB
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
G.S.R. 40(E).—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.”
[F. No. 16/13/EM/2014-Part-I]
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.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.