Overview
A branch office lets a foreign company carry out permitted commercial activities in India and earn revenue here, while remaining legally part of the parent rather than a separate Indian company. Export and import of goods, professional or consultancy services, research, and technical support for the parent’s products are among the permitted activities.
Because it trades, a branch attracts a heavier approval process and a heavier compliance burden than a liaison office — including tax at the rate applicable to foreign companies and continuing FEMA reporting.
We map your intended activity against what a branch is permitted to do before anything is filed. Where the activity does not fit, we say so and set out the alternative rather than pushing an application that will not hold.
Who this is for
- Foreign companies with contracted revenue in India but no plan for a separate local company
- Engineering, EPC and technical services businesses supporting Indian projects
- Groups whose Indian activity must remain on the parent’s balance sheet
- Businesses importing or exporting goods in the parent’s own name
What the engagement includes
- Permitted activity mapping and eligibility review against RBI criteria
- Preparation and filing of the application through your authorised dealer bank
- Liaison with the Reserve Bank of India through the approval process
- Registration with the Registrar of Companies and issue of the branch identity
- PAN, TAN and GST registrations where applicable
- FEMA reporting, annual activity certificate and audit coordination
Documents you will need
- Certificate of incorporation and charter documents of the parent, apostilled
- Audited financial statements for the preceding financial years
- Board resolution approving the branch and appointing the authorised representative
- Bankers’ report from the parent’s banker
- Detailed description of the activities proposed in India
- Proposed Indian office address proof and no-objection certificate
How it works
- Activity and eligibility check — Proposed activity tested against the permitted list; net worth and track record reviewed.
- Application preparation — Forms, annexures and attested parent documents assembled.
- AD bank and RBI process — Filed through your authorised dealer bank; queries handled through to approval.
- Registration and tax setup — ROC registration, PAN, TAN and GST completed.
- Compliance handover — FEMA reporting, annual activity certificate and audit calendar set up.
Typical timeline. Usually eight to twelve weeks, with the RBI and AD bank review being the dominant variable.
Questions about Branch Office Registration
What is the tax position of a branch office?
A branch is treated as a foreign company for Indian tax purposes and is taxed at the rate applicable to foreign companies, which is higher than the domestic company rate. For businesses expecting sustained Indian profits, a subsidiary is often more efficient — we model both before you decide.
Can a branch office manufacture in India?
Manufacturing directly by a branch is generally not permitted outside a special economic zone. Where manufacture is the objective, a wholly owned subsidiary is normally the appropriate structure.
Does a branch office need an annual audit?
Yes. A branch must have its Indian accounts audited and file an annual activity certificate from its auditor, alongside its income tax return and any GST obligations.
Can we convert a branch into a subsidiary later?
There is no direct conversion. It is done by incorporating a subsidiary, transferring the business, and closing the branch through the prescribed process. Planning the sequence in advance avoids tax and FEMA complications.
Professional fee
Starting From ₹1,99,999
Government fees and third-party charges billed separately, at actuals.
● Usually eight to twelve weeks, with the RBI and AD bank review being the dominant variable.
● First consultation is free, with no obligation to proceed.
● Written scope and fee estimate before any work begins.
Related services
Often needed alongside this
Liaison Office Setup
Starting From ₹1,49,999
A representative presence in India, without earning income here — set up correctly through your authorised dealer bank and the Reserve Bank of India.
Wholly Owned Subsidiary (WOS) Setup
Starting From ₹69,999
A separate Indian company, fully owned by your group — the cleanest long-term structure for most operating businesses.
FEMA & RBI Advisory
Starting From ₹14,999 per consultation
A documented opinion your bank, auditor or board can rely on — not a verbal reassurance.
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