Foreign Company Branch Office Registration in India
A Branch Office is an ideal structure for foreign companies planning to expand operations in India without creating a full-fledged subsidiary. It allows companies incorporated outside India to carry out specific commercial activities such as export or import of goods, providing services, representing parent business, and acting as a buying or selling agent. Branch Offices are governed by the Foreign Exchange Management Act (FEMA) and require approval from the Reserve Bank of India.
India continues to be one of the fastest-growing global markets, making it attractive for international businesses to establish a local presence. A Branch Office serves as a compliant, low-risk entry mode that allows a foreign enterprise to explore business opportunities while maintaining full ownership and control.
Register and Manage you Foreign Entity's Branch Office in India Hasslefree.
Depends upon case to case basis
Filing of Forms with AD Bank
Coordination and Follow Up
Application for Pan/Tan/GST
Complete Post Incorporation Compliance
- Foreign Company's planning to start a Branch Office in India
- Purchase of Plan
- Expert Assigned
- Share the details as requested
- Preparation of Form and Filing with AD Bank and RBI
Charter documents including Memorandum and Articles
Board Resolution approving the opening of a Branch Office
Audited financial statements for the past five years
Details of authorised representatives in India
KYC documents of directors
Banker’s Report from the overseas bank
Address proof of the proposed office location in India
What is a Branch Office in India
A Branch Office is an extension of a foreign parent entity. It cannot carry out manufacturing activities in India but can engage in permitted activities such as consulting, research, professional services, and promoting the parent company’s business.
To operate legally, a Branch Office must obtain approval from the RBI, register with the Ministry of Corporate Affairs, obtain PAN, TAN, GST, and meet ongoing compliance requirements.
Eligibility Criteria for Branch Office Registration
Foreign companies must meet specific financial and regulatory conditions before establishing a Branch Office in India. Key eligibility requirements include:
The applicant company must have a profitable track record for the preceding five financial years.
The net worth of the foreign company must be at least USD 100000 or its equivalent.
The activities of the proposed Branch Office must fall under the permitted list as per RBI guidelines.
Parent company must be engaged in the same business for which the Branch Office is being established.
Permitted Activities for a Branch Office
RBI allows a Branch Office in India to engage in certain activities such as:
Prohibited Activities
Retail trading of any kind
Any activity not expressly permitted by the RBI
Documents Required for Branch Office Registration
Foreign companies must prepare and notarize documents in their home country before submission. The documents include:
Certificate of Incorporation of the foreign entity
Charter documents including Memorandum and Articles
Board Resolution approving the opening of a Branch Office
Audited financial statements for the past five years
Details of authorised representatives in India
KYC documents of directors
Banker’s Report from the overseas bank
Address proof of the proposed office location in India
Procedure for Branch Office Registration in India
The registration process involves several statutory approvals and filings. The step-by-step procedure is as follows:
♦ Application to the RBI
Submission of the Foreign Company’s details through the Unified Filing Portal. RBI reviews financial capability, background, and business activity.
♦ Approval Under FEMA
Depending on the activity, approval is granted under the Approval Route or Automatic Route.
♦ Registration with the ROC
Once RBI approval is received, the Branch Office must register with the Registrar of Companies by filing the necessary forms.
♦ Obtain PAN and TAN
Mandatory for taxation and TDS compliance.
♦ GST Registration
Required if the Branch Office provides taxable services or engages in trading activities.
♦ Opening of Bank Account
A bank account is opened in the name of the Branch Office for operations in India.
Timeline for Branch Office Registration
ROC registration and post-approval steps take an additional 10 to 15 working days.
Overall process may take 45 to 60 days depending on document verification and clarifications.
Taxation of Branch Office in India
A Branch Office of a foreign company is treated as a Foreign Company under Indian tax law. Key taxation points include:
Ongoing Compliance Requirements
A Branch Office must adhere to multiple statutory and annual compliance obligations such as:
Filing of Annual Activity Certificate with RBI
Annual Financial Statements with ROC
Income tax return filing
Transfer pricing documentation
Renewal of lease agreement for office premises
Payment of applicable taxes and GST filings
Why Choose TAXAJ for Branch Office Registration
Team TAXAJ provides end-to-end support for foreign companies planning to establish and operate a Branch Office in India. Our expertise includes:
Frequently Asked Questions on Branch Office Registration in India
→ What is the difference between a Branch Office and a Liaison Office
A Branch Office can undertake commercial activities and earn revenue, whereas a Liaison Office is restricted to non-commercial and communication activities only.
→ Can a Branch Office engage in manufacturing activities
No, manufacturing is strictly prohibited. However, a Branch Office may subcontract manufacturing to Indian manufacturers.
→ How much net worth is required for Branch Office registration
The foreign company must have a minimum net worth of USD 100000 as per the latest audited balance sheet.
→ How long does the Branch Office registration process take
On average, it takes around 45 to 60 days including RBI approval, ROC registration, and obtaining PAN TAN GST.
→ Is a Branch Office required to pay income tax in India
Yes, Branch Offices are considered foreign companies and are taxed at 40 percent plus surcharge and cess.
→ Can a Branch Office repatriate profits to its parent company
Yes, profits can be repatriated after paying applicable taxes in India and complying with FEMA guidelines.
→ Do Branch Offices require statutory audits
Yes, maintaining books of accounts and annual audits are mandatory.
