Rationalisation of Regulations for Establishment of Office in India

On 3 October 2025, the Reserve Bank of India ('RBI') has issued the Draft – Foreign Exchange Management (Establishment in India of a branch or office) Regulations, 2025 seeking public comments.

Key Proposed Amendments - **Changes in definitions**: Introduction of 'Entity Resident Outside India' (EROI) replacing 'foreign company' - **Simplified office categories**: Branch and Office replacing the earlier Branch Office, Liaison Office, and Project Office structure - **Opening process**: General or specific permission of RBI required - **Activity-based regulation**: Clear delineation of permitted activities for each type of establishment - **Compliance framework**: Updated reporting and compliance requirements