FOR BUSINESS ENQUIRIES +91 9742 000 773 +91 9581 000 770
site logo

Foreign Branch Setup Services in India

Establish a Branch Office in India for Your Foreign Company — RBI Approval, ROC Registration, and Compliance

A foreign company can establish a Branch Office in India to carry out specified activities as an extension of the parent — including export/import of goods, professional/consulting services, research, promoting technical and financial collaborations, and acting as a buying/selling agent. A branch office is not a separate legal entity; it is part of the foreign parent and taxed as a foreign company in India.

Establishing a Branch Office requires prior approval from the Reserve Bank of India (RBI) under FEMA and subsequent registration with the ROC as a foreign company under Section 380 of the Companies Act. Unlike a subsidiary, a branch office cannot undertake retail trading, manufacturing, or processing activities in India.

Our Foreign Branch Setup Services

RBI Approval Application

Preparing and submitting the Branch Office application to the RBI through the designated AD Bank — including the parent company's financials, board resolution, and proposed activities in India.

ROC Registration (FC-1)

Registering the Branch Office with the ROC as a foreign company in Form FC-1 within 30 days of establishing the place of business in India after RBI approval.

PAN & TAN for Branch

Obtaining PAN and TAN for the Branch Office as a separate tax entity — required for income tax filing and TDS compliance on Indian operations.

Bank Account Opening

Assisting with opening an Indian bank account for the Branch Office with an AD (Authorised Dealer) bank — required for receiving remittances from the parent and Indian business operations.

Annual ROC Compliance

Managing the Branch Office's annual ROC compliance — filing FC-3 (financial statements) within 6 months and FC-4 (annual return) within 60 days of the financial year end.

Winding Up & Closure

Advising on the process for closing the Branch Office — including RBI closure application, final income tax return, and ROC deregistration procedures.

Key Facts About Branch Offices in India

  • Requires prior RBI approval — application through the AD Bank using Form FNC
  • Permitted activities are restricted — cannot manufacture, retail trade, or carry on agriculture
  • Branch Office is taxed as a foreign company at 40% on Indian-sourced income
  • Must register with the ROC in Form FC-1 within 30 days of establishing a place of business
  • Must file FC-3 and FC-4 annually with the ROC
  • Profits can be freely repatriated to the parent after tax — no dividend distribution tax
  • RBI approval is typically valid for 3 years and must be renewed

Frequently Asked Questions

What activities can a Branch Office carry out in India?
RBI allows Branch Offices to carry out: 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 and foreign companies; representing the parent company in India; acting as buying/selling agent in India; rendering services in Information Technology and the development of software in India; rendering technical support to the products supplied by parent/group companies; and foreign airline/shipping company operations. A Branch Office cannot engage in retail trading, manufacturing, or processing activities in India.
How long does it take to get RBI approval for a Branch Office?
RBI approval for a Branch Office typically takes 4 to 6 weeks from the date of application through the AD Bank. The application must include the parent company's latest audited financial statements, a board resolution authorising the Branch Office establishment, the proposed activities in India, and the designated authorised representative details. Complex applications or those involving regulated sectors may take longer.
What is the tax treatment of a Branch Office in India?
A Branch Office in India is treated as a foreign company for income tax purposes and taxed at 40% (plus surcharge and cess — effective rate approximately 43.68%) on income earned in India. The Branch Office must file an income tax return in India, maintain books of accounts for Indian operations, and deduct TDS on applicable payments. Profits remitted to the parent are not subject to additional dividend distribution tax — an advantage over the subsidiary route.
What is the difference between a Branch Office and a Liaison Office?
A Branch Office can carry out limited commercial and earning activities in India — such as export/import, consultancy, and technical services — and can earn income in India. A Liaison Office can only undertake liaison activities — promoting the parent's products/services, gathering market intelligence, and facilitating communication — and cannot earn any income in India. A Branch Office is therefore appropriate for foreign companies that want to carry out limited operations, while a Liaison Office is suitable for those wanting only a representative presence.
Can a Branch Office be converted to an Indian subsidiary?
Yes. A Branch Office can be converted to an Indian subsidiary company by incorporating a new private limited company and transferring the Branch Office's assets, liabilities, and operations to the subsidiary. This requires RBI approval for the Branch Office closure, incorporation of the Indian subsidiary, and FEMA compliance for the transfer. The conversion is often done when the Indian operations grow beyond the permitted activities of the Branch Office or when the foreign parent wants to create a separate Indian entity for governance and investment purposes.

Establish Your Branch Office in India — Fully Compliant

RBI application, ROC registration, PAN/TAN, bank account, and ongoing annual compliance for foreign branch offices.

Get Started

F.A.Q.

It is the process of identifying and managing risks related to bribery, corruption, and unethical practices in a business.

It helps prevent legal penalties, protects reputation, and ensures ethical business operations.

The Prevention of Corruption Act, 1988 and other regulatory frameworks govern anti-bribery compliance.

Unethical payments, vendor kickbacks, fraud, and lack of internal controls.

By implementing strong policies, conducting due diligence, and monitoring transactions.

It involves evaluating vendors and partners to identify potential compliance and corruption risks.

 

Scroll to Top