The purpose of setting up a Branch Office in India is to carry out the operational activities of the branch for its business. Branch Office Registration in India is governed and run in accordance with the guidelines of the Reserve Bank of India. Doing business and earning revenue from the activities of the branch is allowed, provided those activities are permitted by RBI. The Branch Office needs to meet all its operational expenses from revenue generated from activities in India, which need to be permitted by the Reserve Bank of India. Simply put, it is allowed to carry out only the operations permitted by RBI.
Highlights of a Branch Office in India
- The Branch Office shall have the same name as the parent company
- The governing body for a Branch Office in India is the RBI (Reserve Bank of India)
- For foreign companies who are not interested in or not planning a long-term business setup in India, it is a suitable option
- The Branch Office does not have separate ownership — it is just an extension of the existing company in the foreign country
- All expenses of the Branch Office are met by the head office if it does not have revenue from Indian operations
Activities Permitted to a Branch Office in India
- Export / import of goods
- Rendering professional or consultancy services
- Carrying out research work in which the parent company is engaged
- Promoting technical or financial collaborations between Indian companies and the parent or overseas group company
- Representing the parent company in India and acting as buying / selling agent in India
- Rendering services in Information Technology and development of software in India
- Rendering technical support for the products supplied by parent / group companies
- Foreign airline / shipping company
Activities Not Permitted to a Branch Office in India
- Retail trading activities of any nature are not allowed for a Branch Office in India
- A Branch Office is not allowed to carry out manufacturing or processing activities in India, directly or indirectly, without approval of RBI
- Profits earned by Branch Offices are freely remittable from India, subject to payment of applicable taxes
Prerequisites for Branch Office Registration in India
Profitable Company
The company looking to start a Branch Office in India shall have a profitable track record during the immediately preceding five years in the home country.
Net Worth
The net worth — i.e. the total of paid-up capital and free reserves, less intangible assets, as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner — shall be not less than USD 100,000.
Our Services — Fast, Easy & Hassle-Free Branch Office Registration
We are a team of professionals; we provide consultancy and solutions for the feasibility of setting up a Branch Office. We take care of legal documentation, preparation of the application, representation, and coordination with government authorities.
- Feasibility study of the project
- Practical solutions
- Legal documents preparation
- Preparation of application
- Obtaining Branch Office permission
- Closing of Branch Office
Compliances to Be Carried Out by a Branch Office of a Foreign Company in India
- Maintenance of books of account
- Getting annual accounts audited
- Filing of Annual Activity Certificate with RBI
- Filing of Annual Return and Balance Sheet with the Registrar of Companies
- Intimating any change in the constitution of the foreign company to RBI & ROC
- Intimating any change in the directors of the foreign company to RBI & ROC
- Intimating each and every change in the Branch Office to RBI & ROC
- No additional place of business can be started unless approval is taken from RBI
Business Licenses Applicable to a Branch Office in India
- Permanent Account Number (PAN)
- Tax Deduction Account Number (TAN)
- Shop & Establishment registration
- GST Registration — if the branch supplies goods or services in India
What We Offer
- Certificate of Incorporation
- AOA & MOA
- PAN Registration
- TAN Registration
- Digital Signature (2 Years Validity)
- 2 DIN of Directors
More Questions? Seek Help of an Expert — Call us at: +91 80555 66789 or Email us: office@anbca.com
