CK XH Inc., a Company incorporated in Hong Kong, engaged primarily in the manufacturing and international trading of telecom infrastructure components, proposes to establish a Branch Office (BO) in Guwahati, Assam, with

The eligibility criteria for setting up a Branch Office in India are governed by the Foreign Exchange Management (Establishment in India of Branch Office or Liaison Office or Project Office or any other Place of Business) Regulations, 2016, issued under FEMA, 1999. Eligibility for setting up a Branch Office The applicant company must be a body corporate incorporated outside India; The name of the Indian branch office must be the same as the parent company (if the branch office does not have revenue from India operations, its expenses must be met by the head office); The net worth of the branch office must not be less than US $100,000; and The parent company should have a profit-making record in the immediately preceding five financial years in the home country. Application shall be submitted through an AD Category-I Bank. In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit. A person resident outside India permitted by the Reserve Bank under these Regulations to establish a branch or liaison office in India may undertake or carry on any activity specified in Schedule I or II), as the case may be, but shall not undertake or carry on any other activity unless otherwise specifically permitted by the Reserve Bank. Yes, CK XH Inc. is eligible to set up a Branch Office in India under the automatic route, provided it meets the net worth requirement and submits the application through an AD Category-I bank. For fifth year nominal loss, Letter of Comfort may be filed. CK XH Inc.'s proposed Branch Office activity such as marketing telecom infrastructure components and offering post-sale technical services qualifies under Schedule I of the FEMA (Establishment of Branch Office) Regulations, 2016.