Branch Office in India

Registration and compliance of Branch Office of Foreign Company in India

Branch Office of Foreign Company in India require obtaining RBI approval and comply with the provisions of Companies Act 2013. Initial step to open a Branch Office in India is to obtain approval from RBI (Reserve Bank of India). RBI will allow opening a Branch Office with a condition to carry on operation in such activities which are permitted by RBI. To carry any other additional activity it requires prior approval from RBI.

Foreign Entities incorporated outside India and primarily engaged in manufacturing or trading activities are allowed by RBI to open a Branch office in India. A Branch Office in India are allowed to import / export goods, can provide consultancy or professional services, can carry research work, providing technical support to the products supplied by its parent company, represent the parent company and acting as buying / selling agent in India. A Foreign Entity Branch office in India cannot undertake retail trade activities and are not allowed to carry any manufacturing or processing activities in India.

Branch Office of Foreign Company in India enjoys benefit of  easy repatriation of funds, no tax on repatriation of funds, no requirement of infusion of equity capital only operational working capital is required.

Procedural requirement to open a Branch Office of Foreign company in India is to file an application to RBI (Reserve Bank of India) and obtain approval. There is a need to fulfill certain criteria for obtaining approval from RBI to open Branch Office in India, the parent company should be of profit making track record during preceding five financial year in its home country and its net worth not less than USD 10,000 as per last audited financial statement duly certified by a Certified Public Accountant or Registered Account practitioner. Proprietary Firms are not allowed to set-up Branch Office in India. Post approval from RBI, there is need to apply ROC (Registrar of Companies) to obtain a CIN (Corporate ‘identity Number). We at ReturnFilings.Com can arrange and provide a place of business in India at very nominal charges. Further after obtaining CIN, there is requirement of PAN (Permanent Account Number) and other regulatory registration will depend upon the size and nature of Branch Office in India, such as TAN (Tax deduction Account Number), GST Registration, IEC (Import Export Code) etc.

Branch office of Foreign Company in India need to comply with filing of “Annual Activity Certificate” (AAC) and form FC containing details of accounts and place of business in India, this is part of Annual compliance with the RBI. Apart from this Annual Tax Return need to be submitted on Income Tax Portal.

After incorporation of Branch Office of Foreign company in India, the entity must adhere to tax laws and regulations, RBI regulations, Companies Act provisions and any other enactment as per the nature of business of the entity. After establishment of Branch Office in India, it requires to file and report various compliance to RBI and ROC. With the ever changing the Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your Branch Office registration in India and thereafter will provide you detailed analysis featuring the industry scenario in India, Various incentives / subsidy schemes available according to industry type. Detail analysis for Set-up of Branch Office in order to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.