Setting branch office of foreign company

Hi

A chinese company wants to set up a Branch office in India . The main object of opening the branch office is acting as a "service centre" for the main company. There will be no manufacturing.

I have few questions :-

1) Can this company form a branch office ( Under the category of rendering technical support to the products supplied by parent company) or it has to set up a liaison office only.

2) is their any specific restriction on Chinese company to form a branch office/liaison office?

3) What are the additional forms / compliance to be followed apart from the following :-

a. Form FNC , Annual activity certificate

b. Form 44 , Form 52

An early reply would be appreciated.

Regards

CA Mayank Kapoor