Skip to content
Company Registration in India
  • Back to Home
  • Blog
  • Inquire Now
Branch Office in India
January 21, 2020 / Starting Business in India

Branch Office in India

What activities can a branch office perform in India?

The branch office are often opened by any foreign company. The activities it can undertake are mentioned below:

  • Export/Import of products
  • Rendering consultancy services
  • Carrying out research work, during which the foreign parent company is engaged.
  • Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
  • Representing the parent company in India and acting as buying/selling agents in India.
  • Rendering services in Information Technology and development of software in India.
  • Rendering technical support to the products supplied by the parent/ group companies.

A branch office cannot perform manufacturing activities on its own but can subcontract these to any manufacturer based in India. Branch Offices can remit the profits to its parent company after paying taxes on an equivalent (RBI).

Who is that the approving authority for branch office?
Reserve bank of India is that the nodal authority to urge the permission to start out a branch office in India

How much time does it fancy setup a branch office in India?
The Branch office could also be registered in 45-60 days

What are the pre requisites to start out a branch office in India?

  • The name of Indian Branch office should be same as that of a parent company.
  • The Branch is simply extension of the exiting company within the foreign country.
  • All the expenses of the BRANCH office are met by the top office, if it doesn’t have the revenue from Indian operations.
  • The foreign parent company getting to setup a Branch office should have a profitable diary during immediately preceding 5 years.
  • The Net worth of the foreign company should be quite or adequate to USD 100,000. The networth certificate should be

A branch office is is suitable for foreign companies looking to setup a short lived office in India and not interested or not getting to have future plans for the Indian operations; except banking, shipping and airlines etc. mentioned above.

Documents required for forming a Branch Office in India
The application for forming a branch office is to tend to the bank in India. The bank then submits the appliance to RBI for approval.

The following documents are required to open a branch office in India:

  • A Indian resident who are going to be liable for branch operations and can be susceptible to make the tax payments and regular compliances
  • Form FNC 1 (Three copies)
  • Letter from the principal officer of the Parent company to RBI.
  • Letter of authority from the parent company in favor of Local Representative.
  • Letter of authority/ Resolution from parent company for fixing BRANCH office in India.
  • Comfort letter from the parent company meaning to support the operation in India.
  • Two copies of English version of the Certificate of Incorporation, Memorandum & Articles of association (Charter Document) of the parent company duly attested by the Indian embassy or notary within the country of registration.
  • Certification of Incorporation – Translated & Duly Notarized and properly authenticated.
  • The Latest audited record and annual accounts of parent company duly Translated notarized for past Three years and properly authenticated
  • Name, Address, email ID and phone number of the authorized person in Home Country.
  • Details of Bankers of the Organization the Country of Origin along side the checking account number
  • Commitment from the Organization to the effect that it’ll be hospitable report / opinion sought from its banker by the govt of India / Federal Reserve Bank of India
  • Expected funding level for operations in India.
  • Details concerning address of the proposed local office, number of persons likely to be used , number of Foreigners among such employees and address of the top of the Local office, if decided
  • Details of Activity administered in Home Country by the applicant organization in short about the merchandise and services of company in short
  • Bankers Certificate from the bank of the parent company about the small print of parent company and duration of banking with parent company
  • Latest Proof of identity of all the administrators – Properly Certified by Banker in Home Country and duly authenticated
  • Latest Proof of address all of Directors – Properly Certified by Banker in Home Country and duly authenticated
  • Details of the Individuals / Company holding more 10% of Equity
  • Structure of the Organization and its Shareholding pattern
  • Complete KYC of Shareholders holding quite 10% Equity within the Applicant Company
  • Resolution for Opening up checking account with the Banker
  • Duly Signed checking account Opening Form for Indian Bank

The application for BRANCH office Licenses is approved by the RBI, but as per the recent changes the applications for BRANCH office are routed through the Authorized Dealers (AD). thanks to this the timeline for fixing the BRANCH office has increased tremendously. Further the documentation required for an equivalent has also increased to an excellent extent.

Post Incorporation Procedural Requirements
After Incorporation, the subsequent registrations also are necessary for a branch office:

  • Permanent account number – PAN
  • Tax deduction number – tan number Shop & establishment
  • Registration GST Registration if providing services to Indian Customers

What are the compliances after the Branch Office is made in India?
Every year a branch office is required to undertake the subsequent activities:

  • Book Keeping
  • Audit
  • Annual activity Certificate with RBI
  • Filling of financials with Registrar of Companies

Post navigation

Previous Post:

Start-Up India Ideas to Build a New India

Next Post:

Benefits of Filing Income Tax Return

Recent Posts

  • How to Renew FSSAI Food License?
  • Strike off company
  • Private Placement of Shares
  • Various compliances/ regulations applicable to a subsidiary of a foreign company
  • Entrenchment of Article of Association

Archives

  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018

Categories

  • Business Tax Return Filing
  • Company Formation / Registration
  • Company incorporation in India
  • Company Registration in India
  • Goods and services tax (GST)
  • Nidhi Company
  • Others
  • Payroll
  • Starting Business in India
  • Taxation
© 2023 Company Registration in India - Powered by SimplyNews