Branch Office Registration
Easy Process & Transparent Fee
All India GST Registration & Returns
Send a Message
- 100% Online
All India Service - Quality Service
& Affordable - 18+ Years
Experienced Team - Timely Compliance
Service
Branch Office Registration
A Foreign Company / Corporation can establish a branch in India by obtaining permission from the Reserve Bank of India (RBI) and subsequently registering it with the ROC and State Police. We have good relationships to deliver smooth services in India.
Branch Office Registration of Foreign Company @ $1599
All Inclusive Professional Fee and Out of Pocket Expenses | Pay Govt Fee on Actual Basis
- Documentation Support (includes drafting)
- Filing of FNC Form to RBI through AD Bank
- Digital Signature for the Authorised Signatory
- Registration of Foreign Company with ROC
- Registration with Local Police
- PAN & TAN Number for the Company
- Bank Account Opening Support
- GST Registration
- Import Export Code (IEC)
- Government fee & Taxes on Actual Basis
Table Of Content
Overview
Conditions
Documents Required
Preparation & Documentation
ProcessBranch Office of a Foreign Company
A foreign company can freely operate in India by registering a branch by obtaining approval of the reserve bank of India through AD category 1 Banker and further registration of the foreign company with the ROC. Such a branch office is treated as a foreign entity and is subject to higher Income Tax @ 40%.
The eligibility requirements for registration of a branch of a foreign corporation is explained in the below section, the application to establish is filed with to the AD Category 1 Bank, provided the applicant foreign entity is having sound financial track record of the past 5 years and in case the applicant is a subsidiary and not eligible, then the parent company or group company may remove the defect by issuing a Letter of Comfort (LOC).
Important Conditions for Setting up a Branch office
Step 1
Net Worth Requirement
The foreign parent company must have a profitable track record of five years in a row with a net worth of more than $ 1,00,000/- duly supported by financial statement.
Step 2
Profit Remittance Allowed
The profits of the branch office are freely allowed to be remitted from India to its parent company after payment of applicable taxes, after the audit if books of A/c.
Step 3
Name of Branch Office
The name must be the same as that of the foreign parent company, and for each new office of such a branch office, a fresh approval is required from RBI with justification.
Step 4
Taxation in Indian
The income tax on the profits of the branch office of foreign entities in India is 40% plus surcharges as applicable. GST is applicable to the supply of goods or services.
List of Documents for Branch Office Registration
| S.No | A. Mother/Parent Company | B. Company Registered Address |
|---|---|---|
| 1. | Certificate of Incorporation / Registration of Foreign Company | Colour Photo - 5 |
| 2. | Memorandum of Association (MOA) and Articles of Association (AOA) | Passport - 5 Copy |
| 3. | List of Details in respect of Directors/Key Executives | Business Visa Copy with Immigration Stamp of arrival |
| 4. | Details of shareholders of the applicant company | National Identity Card - 5 Copy |
| 5. | Net worth certificate attested by Certified Public Accountant (CPA) | Latest Address Proof (Bank Statement/ Electricity/ Water Bill/ Phone Bill) |
| 6. | Audited financial statement of the last Five preceding years | Board Resolution Appointing the AR |
| 7. | Banker’s Report from the applicant’s banker in the host country | Power of Attorney in the name of AR |
More Question? A specialist is here to help
Call us at: +91 9899 600 605 or
Email us: info@setindiabiz.com
Call us at: +91 9899 600 605 or
Email us: info@setindiabiz.com
Preparation & Documentation for Registration of Branch Office
Check Eligibility for Branch Office Registration in India: The establishment of place of business in India for a foreign company/corporation is governed by the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016. For the purpose of setting up a Branch Office following is the most important qualifications
- The networth of foreign head office must be above $ 100,000
- The applicant company should have profitability track record of Five Years.
Basic Documentation: The documentation plays a crucial rope in smooth processing of the application for setting up the Branch Office. The list of documents required has been provided above. You may download Questionnaire for sending information to us.
Drafting of Government Forms and Documents: After we receive the complete set of basic documents we shall draft following documents for signature by the applicant company and the authorized signatory
- Board Resolution approving the opening of the branch office in India
- Declaration from the applicant on FDI eligibility and source of fund
- Declaration about the nature of the activity, the location of the activity of proposed BO and nature of the activity, the location of activity of the applicant company.
- Form FNC
- Letter of Comfort form holding company
Legalisation of Documents: All documents which are originating from a foreign country or which is signed/executed in a foreign country shall be legalized either through Indian Embassy or to be apostilled as per the Hague Convention.
Process & Timeline for Branch Office Registration in India
Leading Brands Rely On Our Expertise
Frequently Asked Questions
A branch office of a foreign company, a body corporate incorporated outside India, including a firm or other association of individuals is permitted to any activities which are allowed or permitted for the furtherance of the parent company objectives in compliance with RBI notification. Click to see the List of permitted activities for a Branch Office in India.
- Pakistan,
- Bangladesh,
- Sri Lanka,
- Afghanistan,
- Iran,
- China,
- Hong Kong,
- Macau
- Or any application for opening of a branch office in Jammu & Kashmir, North East Region and Andaman and the Nicobar Islands.
A branch office of a foreign mother company is not treated as a separate and distinct entity in India and for all tax purposes, the Indian government taxes the profits of such entities at higher rates. As of now the Income Tax on the profit of a foreign company is 40% in contrast to the tax rate of 30% on an Indian company.
The branch office of a foreign company can be opened if the applicant foreign corporation has a track record of profit generation for the past 5 years and it is financially sound. When we say financially sound in the context of a branch office establishment in India of a foreign company, we mean net-worth of USD 1,00,000 or its equivalent. The financial statement duly attested by the statutory auditor of the parent company is required.
Following documents are required for registration of branch office of the foreign company:
- Certificate of Incorporation or business license of parent company
- Charter issued to the foreign company by the government
- Memorandum of Association or Articles (Rules of the Company)
- A declaration from the foreign corporation (parent company) that the parent company shall meet any shortfall in meeting the expenses of branch office
- Five years historical Financial Statement of the parent company duly attested by its auditors
- A certificate from the auditors of the parent company that the net worth of the parent co is more than $ 1,00,000
- The identity and address proof of the responsible person to do compliance for the branch office in India.
- Premises proof, where the branch office shall be registered
- A No objection certificate from the owner of the premises of the registered office.
- In case the document is in the foreign language, then a certified translation thereof must be filed.
- All the document having foreign origin shall be legalised as per Hague convention or by the Indian embassy, high commission.
After approval of the RBI for establishing a branch office in India by a foreign company is obtained the same need to be registered with the ROC within 30 days by filing form FC-1 with the digital signature of the authorised person and following documents as annexure
- A certified copy of the charter, statutes or memorandum and articles, of the company or other instrument constituting or defining the constitution of the company and, if the instrument is not in the English language, a certified translation thereof in the English language;
- The full address of the registered or principal office of the company;
- A list of the directors and secretary of the company containing such particulars as may be prescribed;
- The name and address or the names and addresses of one or more persons resident in India authorized to accept on behalf of the company service of process and any notices or other documents required to be served on the company;
- The full address of the office of the company in India which is deemed to be its principal place of business in India;
- Particulars of opening and closing of a place of business in India on earlier occasion or occasions;
- A declaration that none of the directors of the company or the authorized representative in India has ever been convicted or debarred from the formation of companies and management in India or abroad; and Any other information as may be prescribed.
