Branch office registration in India
A branch office allows a foreign company to carry out specified commercial activities in India, such as exporting, importing, providing professional services or research. Unlike a liaison office it can earn income, which is taxed in India at the rate applicable to foreign companies.
What this covers
- Review of permitted activities under FEMA
- Application through the authorised dealer bank to RBI
- ROC registration of the place of business
- PAN, TAN and GST registration
- Statutory audit and income tax return of the branch
- Annual Activity Certificate filing
How the work is done
- Confirm the activities fall within permitted categories
- Prepare and file the application through the AD bank
- Register with ROC after approval
- Set up accounting, tax and annual reporting
Documents usually needed
- Parent's certificate of incorporation and audited financials
- Banker's report
- Board resolution and details of the branch's activities
Frequently asked questions
What is the difference between a branch and a subsidiary?
A branch is an extension of the foreign company and is taxed as a foreign company. A subsidiary is a separate Indian company and is taxed as a domestic company.
Can a branch office do manufacturing?
Generally no. Manufacturing is usually done through a subsidiary. Branch activities are limited to those permitted by RBI.
Does a branch office need an audit?
Yes. The branch's accounts must be audited, and it files an income tax return in India.