What is the Exact Process of Setting Up a Branch Office in India?

Register your company online with Numbro in just 3 guided steps.

Our team supports you in giving your business the right legal structure to explore new opportunities.

Our team supports you in giving your business the right legal structure to explore new opportunities.

We assist in obtaining approvals from RBI and other statutory authorities, and guide you on regular compliance and reporting.

We assist in obtaining approvals from RBI and other statutory authorities, and guide you on regular compliance and reporting.

We assist in preparing compliance charts, guide on applicable laws, and support with reporting requirements to statutory authorities.

We assist in preparing compliance charts, guide on applicable laws, and support with reporting requirements to statutory authorities.

BRANCH OFFICE

As foreign companies expand globally, establishing a Branch Office (BO) can help them manage business operations in new regions. In India, a Branch Office functions as an extension of the parent company and is governed by the Companies Act, 2013, and FEMA Act, 1999. Foreign companies may apply for permission from the Reserve Bank of India (RBI) to set up a Branch Office. Such offices can generate revenue only through activities permitted under RBI guidelines.

A Branch Office is suitable for foreign businesses looking for a temporary setup in India rather than a long-term operation.

    Advantages of Branch Office Registration in India

    Revenue Opportunities – A Branch Office can generate income in India through activities permitted by the Reserve Bank of India (RBI). Profits earned can be repatriated to the parent company, subject to applicable laws..
    Short-Term Presence – Ideal for foreign companies seeking a temporary office setup in India without long-term business commitments.
    Cost-Efficient Structure – Generally smaller in scale with limited operations, which can help reduce overhead costs and simplify management.
    Simplified Compliance – Since it operates as an extension of the parent company, regulatory and reporting requirements are focused on approved business activities.

    Numbro's Role

    Procedural aspects in Setting up Branch Office in India
    Advice on Tax & Legal Matters Before Starting a Branch Office in India
    Our Support Includes Documentation Assistance – Preparation and submission of required documents. Coordination with RBI – Support in obtaining necessary approvals from the Reserve Bank of India. Post-Incorporation Support – Guidance on statutory filings and compliance requirements. Ongoing Compliance – Assistance with periodical returns and reports as per applicable laws.

    FAQ's

    What activities can a Branch Office undertake in India?

    A Branch Office represents a parent company and usually carries out same activities as that of the parent company. However, RBI permits only the following activities to be undertaken by the Branch Office in India:

    • Export or Import of goods
    • Rendering consultancy or professional services
    • Acting as a representative of a buyer or seller in India of the overseas parent company
    • Providing technical support to the customers of the parent company in India
    • Carrying out research work in areas in which the overseas parent company is already engaged
    • Providing Information Technology services and developing software in India
    • Promoting technical or financial collaborations on behalf of the parent company
    • Foreign airline or shipping company
    • Foreign Banks

    (The permitted activities are subject to change from time to time as per the decision of Govt of India)

    What are the prohibited activities for a Branch Office in India?

    A Branch Office is not allowed to undertake the following activities:

    • Retail trading of any kind
    • Direct or indirect manufacturing or processing

    If a Branch Office is willing to undertake an activity in addition to what has been permitted initially by the RBI, then it has to take the necessary permission from the RBI. The Branch Office is also required to justify the need along with comments of the designated AD Category – I bank through which it is filing the request.

    (The prohibited activities are subject to change from time to time as per the decision of Govt of India)

    What are the requirements and conditions for opening a Branch Office in India?

    The eligibility criteria of the Parent company for opening a branch office in India are:

    • Net worth equal to USD 100,000 or more.
    • Profitable financial track record of the immediately preceding five years in the base country of registration.

    Other requirements and conditions for establishing Branch Office in India:

    • The name of the Branch Office shall be same as that of the parent company.
    • The Branch Office does not have any ownership or the legal identity of its own. It is just an extension of the existing foreign company.
    • If a Branch Office does not have any revenue from Indian operations, then all of its costs are reimbursed by the head office.
    What are the post incorporation requirements for Branch Office in India?

    After Incorporation, following are the mandatory requirements for a Branch Office in India:

    • Obtaining Permanent Account Number (PAN)
    • Obtaining Tax Deduction Number (TAN)
    • Obtaining GST Registration, if the branch provides any kind of services in India or carries out trading activities in India

    Disclaimer: We are a private consultancy firm providing advisory and application support services related to business registration and compliance. We are not a government agency and we do not issue or provide government documents or certificates.