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Branch Office of Foreign Company

How to set up Branch office of Foreign Company in India.

Posted By admin on December 24, 2013 No Comments

SET UP OF BRANCH OFFICE REGISTRATION IN INDIA –

One of the most popular option among foreign company is to open Branch office in India

Any foreign company which has profit track record of 3 to 5 Year can open Branch office in India.

Time to open Branch office is 2-3 Months.

PROCEDURE FOR SETTING UP A BRANCH OFFICE IN INDIA:

      • Branch office can be set up in India only with the prior approval of RBI.
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In case foreign company is not able to meet capital and profit requirement, they can consider to open Subsidiary Company in India subject to Foreign Direct Investment guidelines in India.

Foreign Companies are allowed to carried out only specified activity as mentioned in this article.

Branch Office Registration in India

KEY SIX FEATURES OF BRANCH OFFICE REGISTRATION IN INDIA :

ü The name of Indian BRANCH office shall be same as parent company.

ü The governing body for the BRANCH office License is Reserve Bank of India.

ü It is suitable for foreign Companies looking to setup a temporary office in India and not interested or not planning to have long term plans for the Indian operations.

ü The BRANCH office does not have any ownership; it is just extension of the exiting company in the foreign country.

ü All the expenses of the BRANCH office are met by the head office, if it does not have the revenue from Indian operations.

CALL NOW or wharsapp Now at : 9818092002 

ELIGIBILITY GUIDELINES FOR SETTING UP A BRANCH OFFICE REGISTRATION IN INDIA :

    • The company looking to start a Branch office in India shall have a profitable track record during immediately preceding five years in the home country.
    • The Net Worth i.e total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name shall be not less than or equal to amount specified by Reserve Bank of India

EIGHT ACTIVITIES ARE PERMITTED TO BRANCH OFFICE TO UNDERTAKE:

      • Export/Import of goods
      • Rendering professional or consultancy services.
      • Carrying out research work, in which the parent company is engaged.
      • Promoting technical or financial collaborations between Indian companies and parent or overseas group company.
      • Representing the parent company in India and acting as buying/selling agent in India.
      • Rendering services in Information Technology and development of software in India.
      • Rendering technical support to the products supplied by parent/group companies.
      • Foreign Airline/shipping Company.
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