Branch Office Registration

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

1. The networth of foreign head office must be above $ 100,000
2. The applicant company should have profitability track record of Five Years.

Only Eight kinds of activities are permitted for the liaison office, please refer - Permittd Activities for Branch Office for details

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 authorised signatory

1. Board Resolution approving the opening of the branch office in India
2. Declaration from the applicant on FDI eligibility and source of fund
3. 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.
4. Form FNC
5. 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.

Application for Digital Signature of Authorised Signatory

A digital signature is the equivalent of physical or paper signature under the information technology act. As per new process all applications to the registrar of companies are filed in digital format which need to be authenticated by the digital signature of the proposed shareholders and directors as the case may be. The filing process starts with the issue of digital signature for all the promoters.

Filing of Application with RBI through AD Bank

The application for registration of a branch office of a foreign company is filed in the prescribed form - FNC to the RBI through AD Bank (Authorised Dealer). The AD Bank plays a crucial role as all the communication to the RBI has to be routed through them. We have an excellent relationship with many banks in India, which certainly help in obtaining the approval fast. The permission once granted remain valid for six months and you may apply for the extension of the same if required.

Verification of KYC from Banker of Parent Company

After FNC Form is filed with the AD Bank, a request for verification of documents is sent to the banker of the foreign company. This process is also known as swift based verification. After receipt of confirmation of the documents from the foreign banker, the next process of approval is proceeded with. The RBI/AD Banker may seek clarification or any additional document which need to be submitted.

Approval of RBI for Branch Office Registration in India

There is a specific policy of approving the establishment of a branch office by the AD Banker itself and only cases where the automatic route is not available the cases are forwarded for prior approval of the RBI. The process of approval after swift verification is of a week.

Registration of Branch Office with the ROC

After approval of the RBI for the establishment of the branch office in India, an application for registration of branch office of the foreign company is filed in form FC-1 within 30 days of such approval. In case there are Indian directors the DIN number of such director is needed, and the digital signature of the authorised signatory is required to e-file statutory forms with the ROC for their approval.

PAN Card, Tax Deduction Number & Bank A/c Opening

Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential for compliance with the tax rules. The bank account of the branch office can be opened after allotment of Pan Number by the Income Tax Department.

Registration with State Police

Finally, the branch office needs to register it with the state police (In the office of the superintendent of Police). The application must be accompanied by the RBI approval and KYC of all authorised persons in India and the foreign company.

GST Registration & IEC

By this time the Branch Office would have received the Bank Account and cheque book, we would need a copy of the check for making application for GST Registration and Import Export Code for the Branch Office of the foreign Company