ABC Ltd., involved in manufacturing or trading activities, established its branch office outside India includes a firm or association of persons. The permission in this regard has to be obtained from the RBI under the FE

As per the Reserve Bank of India Master Direction 2016- 'Direct Investment by Residents in Joint Venture (JV)/ Wholly Owned Subsidiary (WOS) Abroad', the permitted activities are given as under: Establishment of Special Purpose Vehicle (SPV) are permitted under the Automatic Route. Establishment of step down subsidiary. Establishment of unincorporated/ incorporated entities in oil sector under the Automatic Route. Construction and maintenance of submarine cable systems under the Automatic Route. Natural resources sector. Further, Master Direction 2016 provides that Indian Party should not be on the Reserve Bank's Exporters' caution list / list of defaulters to the banking system circulated by the Reserve Bank / Credit Information Bureau (India) Ltd. (CIBIL)/ or any other credit information company as approved by the Reserve Bank or under investigation by any investigation / enforcement agency or regulatory body or is under investigation by the Directorate of Enforcement or included in the list of defaulters to the banking system circulated by the Reserve Bank/any other Credit Information company as approved by the Reserve Bank. Indian Party are not permitted in an overseas entity located in the countries identified by the Financial Action Task Force (FATF) as "non co-operative countries and territories" as per list available on FATF website www.fatf-gati.org or as notified by the Reserve Bank of India from time to time.