Branch Office Package
Branch offices are extensions of the foreign company and do not constitute a body corporate of its own and the branch office can carry on its business activities in the same way as a domestic company.
For Branch Office — a profit making track record during the immediately preceding five financial years in the home country.
Net Worth [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], not less than USD 100,000 or its equivalent
Foreign companies are allowed to setup branch office in India after obtaining the requisite approval from the Reserve Bank of India (RBI). Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Authorized Dealer in whose jurisdiction the office is set up.
Branch Office to conduct the following activities:
• 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
• Unlike a liaison office, branch offices can generate revenue from the sales in the local market and repatriate the profits to the foreign parent company.
• Funding is possible through the receipts from the parent company and from business operations in India.
• Branch offices set up with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines.
• A branch office cannot carry on any manufacturing activities. Manufacturing activities can be carried on only through the means of a company incorporated in India.
• Retail trading activities of any nature is not allowed for a Branch Office in India.