Lower middle income
GNI per capita (US$):
Young working population
There are various methods by way of which a foreign company can enter India economy, and the decision of a particular format depends on the business objective and the purpose for which the foreign company or corporation is coming into India. If the purpose is to study Indian Market, potential, or to spread awareness of the product or services, then the best choice would be to form a liaison or representative office of the foreign company. However in case, the objective is to book orders, but the delivery of goods or services shall be the responsibility of the head office, a branch office of the foreign company is a good choice. A branch office or a liaison office is a foreign company for tax laws and Indian government taxes the profits of such entities at higher rates. As of now the tax on the profit of the foreign company is 40% in contrast to the tax rate of 30% on Indian company.
A Branch Office Registration in India is carried out in accordance with the guidelines of Reserve Bank of India in pursuance of Section 6(6) of Foreign Exchange Management Act, 1999 ("FEMA") read with Notification No. FEMA 22/2000-RB dated May 3, 2000. Indian Laws are dynamic and based on the changing needs the regulations in Foreign Exchange Management Act are revised time to time. As of now, the regulatory body is the central bank of India (Reserve Bank of India) which accepts the application for registration of the branch office in India through its designated banks. The decision concerning approval of registration of a branch office is discretionary, and the central bank can ask for more information and clarification from the applicant. We have been assisting many foreign companies in getting their branch office registered in India.
For Registered Address in India