RBI proposes networth criterion for foreign firms

According to the current eligibility norms for establishing a branch or liaison office in India, a foreign company is required to obtain the approval of either RBI or the central government.

A liaison office, according to the RBI norms, is allowed to represent the foreign company in India and act as a communication channel between the parent company and domestic firms.

 

The branch offices, however, can take the activity of exporting or importing goods and render professional or consultancy services. They can also conduct research in which the parent company is engaged.