Branch Office Registration in India – Setup Your Foreign Company Branch Easily
Branch Office Registration in India is the most effective way for a foreign company to enter and expand in the Indian market. Setting up a branch office allows you to offer services, promote your brand, and manage operations directly in India under legal compliance.
GroomTax provides end-to-end support for RBI approval, ROC registration, documentation, and FEMA compliance. Our experts make the entire registration process smooth, transparent, and hassle-free.
Whether your company is in trading, consultancy, or manufacturing, establishing a branch office in India gives your business a strong and legitimate presence. Start your registration today with GroomTax’s professional guidance and grow confidently in India.
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Eligibility Criteria for Branch Office Registration in India
Before setting up a Branch Office in India, a foreign company must meet a few essential financial and legal conditions as prescribed by the Reserve Bank of India (RBI) and the Government of India. These rules ensure that only financially sound and reputable organizations can operate in the Indian market.
If your company has a stable track record and meets the following requirements, you are eligible to open a Branch Office in India:
- The company must have earned profits for the last five financial years in its home country.
- The company’s net worth should be at least USD 100,000 (or an equal amount in another currency).
- Sole proprietorships or individual businesses from abroad are not allowed to set up a branch office in India.
- The branch office must engage only in activities permitted by the Reserve Bank of India (RBI), such as export/import of goods, consulting, or research.
- The company must obtain RBI and government approval before starting operations in India.
Permissible Activities for the Branch Office Setup in India
The Reserve Bank of India (RBI) allows foreign companies to establish a Branch Office in India to carry out specific business activities that help promote their parent company’s interests. These activities are designed to facilitate trade, provide technical and financial collaboration, and strengthen business relations between India and foreign entities.
A Branch Office may undertake the following RBI-approved activities:
Permissible Activities
- Rendering professional or consultancy services within permitted sectors.
- Providing Information Technology (IT) and software development services in India.
- Offering technical support and after-sales services for products supplied by the parent or group companies.
- Engaging in the export and import of goods on behalf of the parent company.
- Promoting technical or financial collaborations between Indian companies and the parent or overseas group company.
- Conducting research activities related to the business operations of the parent company.
- Representing the parent company in India and acting as a buying or selling agent for business transactions.
- Acting as a representative office for foreign airlines or shipping companies operating in India.
Not Permissible Activities
While a Branch Office can perform the above activities, certain operations are restricted under RBI and FEMA regulations to maintain legal and financial compliance. The following activities are not permitted:
- Engaging in retail trading activities or direct sales of goods and services to Indian consumers.
- Carrying out manufacturing, processing, or industrial production activities within India.
List of Documents Required
- Copy of the Certificate of Incorporation; Memorandum of Association (MOA) and Articles of Association (AOA) attested by the Notary Public in the country of registration. [If the Certificate is in a language other than in English, the same must be translated into English and notarized as above and cross verified/attested by the Indian Embassy/ Consulate in the home country]
- Certified copy of the financials for last five years. [If the applicants’ home country laws do mandate auditing of accounts, an Account Statement certified by a CPA or any Registered Accounts Practitioner, disclosing the net worth may be submitted]
- Certified copy of Certificate of net worth & Profits for last 5 (five) five years
- Bankers' Report from the applicant’s bank in the host country showing the number of years since when the applicant has had banking relations with that bank.
- Board Resolution of parent company for approval of opening of Branch office in India
- Notarised copy of Board Resolution in favour of Mr/Ms/Miss, local Representative to sign & execute all the documents required for this purpose
- Notarised Identity & Address proofs of the person signing documents on behalf of parent company;
- Notarised Identity & Address proofs of the Authorised Representative;
- Notarised Identity & Address proofs of Directors of the parent company;
Branch Office Registration Process in India
Accurate and updated paperwork is very important for the Branch Office registration in India. All documents must be valid, complete, and up-to-date to avoid delays or rejection. Proper documentation helps ensure a smooth registration process and confirms the company’s eligibility to operate legally in India.
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1
Submit application to RBI through an Authorized Dealer (AD) Bank along with required documents and company details.
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2
Provide KYC documents from the parent company’s banker to verify financial stability and authenticity of details.
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3
Obtain prior RBI approval in specific cases where activities do not fit the standard automatic approval process.
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4
Register the approved Branch Office with the Registrar of Companies (ROC) by submitting necessary incorporation documents.
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5
Apply for PAN, TAN, and open a local bank account to enable taxation and financial transactions in India.
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6
Register for GST and obtain Import Export Code (IEC) if involved in trade or service-related business operations.
Deliverable
- RBI approval letter
- Certificate of incorporation
- Company PAN card
- Company TAN number
India Entry Services
| Particulars | Company/LLP | Branch Office | Project Office | Liaison Office |
|---|---|---|---|---|
| Eligibility | No Criteria | Profit track record of 5 FY and net worth of USD 100,000 or more | No Criteria | Profit track record of 3 FY and net worth of USD 50,000 or more |
| Approval | ROC | RBI and ROC | RBI and ROC | RBI and ROC |
| Purpose/Activities | Commercial, trading, or industrial activities in India | Commercial, trading, or industrial activities in India except retail trading & manufacturing | To Execute a particular project in India | Representing, Promotion and communication |
| Sources of Funds | Capital and Profits | Head office and internally generated funds | Head office and internally generated funds | 100% from head office |
| Tax Rate | 15%-30% | 40% | 40% | Not Applicable |
| Minimum No. of Director/AR | 2 | 1 | 1 | 1 |
| Minimum No. of Director resident in India | 1 | 1 | 1 | 1 |
| Timelines | 7-10 Days | 3-4 Months | 3-4 Months | 3-4 Months |
| Know More | Know More | Know More | Know More |
