A branch office is a permitted place of business set up in India by a foreign company to carry on commercial activities on behalf of its overseas parent. It is an extension of the foreign company rather than a separate Indian legal entity, and is regulated under FEMA with prior approval from the Reserve Bank of India through a designated AD Category-I bank.
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01
Overview
A Branch Office (BO) is a permitted place of business in India set up by a foreign company to carry on commercial operations on behalf of its overseas parent. Unlike a subsidiary, a branch office is not a separate Indian legal entity – it is an extension of the foreign company. Its establishment is regulated under the Foreign Exchange Management Act, 1999 (FEMA) and the FEMA (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any other place of business) Regulations, 2016, and requires prior approval from the Reserve Bank of India (RBI) through a designated AD Category-I bank.
A branch office is suited to foreign companies that wish to do business in India – such as export/import of goods, professional or consultancy services, research, or technical support – without incorporating a separate company. It allows the parent to earn income in India and remit profits abroad, subject to applicable taxes and FEMA conditions.
Registration is required because no foreign company can lawfully open a branch office in India until it obtains RBI/AD-bank approval and a Unique Identification Number (UIN), and subsequently registers the office with the Registrar of Companies (ROC) by filing Form FC-1. This ensures the foreign entity operates within the permitted scope of activities and remains compliant with Indian foreign-exchange and corporate law.
A branch office is suited to foreign companies that wish to do business in India – such as export/import of goods, professional or consultancy services, research, or technical support – without incorporating a separate company. It allows the parent to earn income in India and remit profits abroad, subject to applicable taxes and FEMA conditions.
Registration is required because no foreign company can lawfully open a branch office in India until it obtains RBI/AD-bank approval and a Unique Identification Number (UIN), and subsequently registers the office with the Registrar of Companies (ROC) by filing Form FC-1. This ensures the foreign entity operates within the permitted scope of activities and remains compliant with Indian foreign-exchange and corporate law.
02
Advantages
Setting up a branch office offers a foreign company a regulated, low-commitment way to operate in India:
- Direct market presence – the foreign parent can conduct permitted commercial activities and earn income directly in India.
- No separate Indian company – the branch is an extension of the parent, avoiding the cost and compliance of incorporating a subsidiary.
- Profit repatriation – net profits earned in India can be remitted to the parent company through the AD Category-I bank, subject to applicable taxes and FEMA norms.
- Wider scope than a liaison office – unlike a liaison office, a branch may carry on actual business and generate revenue.
- Credibility – an RBI-approved, ROC-registered presence builds confidence with Indian clients, banks and authorities.
- Single point of regulation – the designated AD Category-I bank handles approvals and ongoing foreign-exchange reporting.
03
Document
Only PAN Card and Aadhaar Card are mandatory; the rest are optional.
- PAN Card
- Aadhaar Card
- Passport-size Photograph
- Address Proof (Utility / Electricity Bill)
- Bank Statement
04
How to Apply
Getting your Branch Office registered in India through TaxoSure is simple and fully assisted. Just follow these steps:
- Talk to our consultant. Our consultant connects with you on WhatsApp / Call to confirm the details, share the pricing and begin the work.
- Get your Branch Office registration. Our experts complete the entire process, including the RBI / AD bank approval and ROC formalities, and deliver your branch office registration and related documents to you.
05
Eligibility
A branch office may be established by a body corporate incorporated outside India (including a firm or other association of individuals). Under the current norms, the applicant is generally expected to meet financial-soundness conditions:
- Foreign incorporation – the applicant must be a company or body corporate registered outside India.
- Profit track record – a record of profit-making during the immediately preceding five financial years in the home country.
- Net worth – a minimum net worth of not less than USD 100,000 (or its equivalent), as per the latest audited balance sheet or account statement certified by a certified public accountant.
- Applicants that do not satisfy these criteria, and subsidiaries of other companies, may submit a Letter of Comfort from the parent meeting the prescribed norms, subject to RBI consideration.
06
Permitted Activities
A branch office may undertake only the activities specifically permitted by the RBI. Commonly permitted activities include:
- Export and import of goods.
- Rendering professional or consultancy services.
- Carrying out research work in areas in which the parent company is engaged.
- Promoting technical or financial collaborations between Indian companies and the parent or overseas group company.
- Representing the parent company in India and acting as buying or selling agent in India.
- Rendering services in information technology and development of software in India.
- Rendering technical support for products supplied by the parent or group companies.
- Acting as a representative of a foreign airline or shipping company.
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