Verified Compliance Content: This guide has been technically reviewed and verified for accuracy by our panel of Chartered Accountants (CA) and Company Secretaries (CS) to ensure it meets 2026 regulatory standards.
What activities can a branch office perform in India?
The branch office can be opened by any foreign company. The activities it can undertake are mentioned below:
- Export/Import of goods
- Rendering consultancy services
- Carrying out research work, in which the foreign 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 agents in India.
- Rendering services in Information Technology and development of software in India.
- Rendering technical support to the products supplied by the parent/ group companies.
A branch office cannot carry out manufacturing activities on its own but can subcontract these to any manufacturer based in India. Branch Offices can remit the profits to its parent company after paying taxes on the same (RBI).
Who is the approving authority for branch office?
Reserve bank of India is the nodal authority to get the permission to start a branch office in India
How much time does it take to setup a branch office in India?
The Branch office may be registered in 45-60 days
What are the pre requisites to start a branch office in India?
- The name of Indian Branch office should be same as that of a parent company.
- The Branch is just extension of the exiting company in the foreign country.
- All the expenses of the BRANCH office are met by the head office, if it does not have the revenue from Indian operations.
- The foreign parent company planning to setup a Branch office should have a profitable track record during immediately preceding 5 years.
- The Net worth of the foreign company should be more than or equal to USD 100,000. The networth certificate should be
A branch office is 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; except banking, shipping and airlines etc. mentioned above.
Documents required for forming a Branch Office in India
The application for forming a branch office is to be given to the bank in India. The bank then submits the application to RBI for approval.
The following documents are required to open a branch office in India:
- A Indian resident who will be responsible for branch operations and will be liable to make the tax payments and regular compliances
- Form FNC 1 (Three copies)
- Letter from the principal officer of the Parent company to RBI.
- Letter of authority from the parent company in favor of Local Representative.
- Letter of authority/ Resolution from parent company for setting up BRANCH office in India.
- Comfort letter from the parent company intending to support the operation in India.
- Two copies of the English version of the Certificate of Incorporation, Memorandum & Articles of association (Charter Document) of the parent company duly attested by the Indian embassy or notary public in the country of registration.
- Certification of Incorporation – Translated & Duly Notarized and properly authenticated.
- The Latest audited Balance sheet and annual accounts of parent company duly Translated notarized for past Three years and properly authenticated
- Name, Address, email ID and telephone number of the authorized person in Home Country.
- Details of Bankers of the Organization the Country of Origin along with the bank account number
- Commitment from the Organization to the effect that it will be open to report / opinion sought from its banker by the Government of India / Reserve Bank of India
- Expected funding level for operations in India.
- Details Relating to address of the proposed local office, number of persons likely to be employed, number of Foreigners among such employees and address of the head of the Local office, if decided
- Details of Activity carried out in Home Country by the applicant organization in brief about the product and services of company in Brief.
- Bankers Certificate from the bank of the parent company about the details of parent company and duration of banking with parent company
- Latest Proof of identity of all the Directors – Properly Certified by Banker in Home Country and duly authenticated
- Latest Proof of address all of Directors – Properly Certified by Banker in Home Country and duly authenticated
- Details of the Individuals / Company holding more 10% of Equity
- Structure of the Organization and its Shareholding pattern
- Complete KYC of Shareholders holding more than 10% Equity in the Applicant Company
- Resolution for Opening up Bank Account with the Banker
- Duly Signed Bank Account Opening Form for Indian Bank
The application for BRANCH office Licenses is approved by the RBI, but as per the recent changes the applications for BRANCH office are routed through the Authorized Dealers (AD). Due to this the timeline for setting up the BRANCH office has increased tremendously. Further the documentation required for the same has also increased to a great extent.
Post Incorporation Procedural Requirements
After Incorporation, the following registrations are also necessary for a branch office:
- Permanent account number – PAN
- Tax deduction number – tan number Shop & establishment
- Registration GST Registration if providing services to Indian Customers
What are the compliances after the Branch Office is formed in India?
Every year a branch office is required to undertake the following activities:
- Book Keeping
- Audit
- Annual activity Certificate with RBI
- Filling of financials with Registrar of Companies
About Rohit Lohade
Rohit Lohade is a Chartered Accountant with 15+ years of experience. He has assisted more than 300 Gobal Companies with India Entry Strategy