Reserve Bank Of India Guidelines
The RBI’s updated Master Direction simplifies the establishment of foreign entity offices, Branch, Liaison, or Project, in India. It allows setups in 100% automatic-FDI sectors without prior RBI approval, provided applications are made via the FIRMS portal and submitted through an AD Category–I bank. Profit repatriation is permitted for Branch Offices, and specific reporting (e.g., Annual Activity Certificate) is required for all types. Permissions are assigned a unique UIN once compliance is verified by the AD bank under RBI/FEMA rules.
Foreign Exchange Management Act, 1999 (FEMA)
FEMA governs India’s foreign exchange framework and inbound/outbound capital flows. It sets standards for FDI, remittances, and overseas investments, including timelines for digital filing of FDI forms and penalties for non-compliance under updated compounding rules effective 2024.
External Commercial Borrowings (ECB)
Under the RBI’s ECB framework, eligible Indian entities can borrow from recognized non-resident lenders in the following forms: