Call Us on
Opening a Branch in India
Options and Requirements for Foreign Investors Opening a Branch in India
There are certain conditions for opening a branch in India for a foreign company. A branch can be opened for specific purposes, and there are some requirements and conditions for opening a branch office in India.
Branch in India – Purposes
Foreign companies, including USA companies, are allowed to set up Branch Offices in India for the following purposes:
- 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 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.
- Foreign airline/shipping company
- Foreign Banks
A branch office is not allowed to carry out manufacturing activities on its own but is permitted to subcontract these to an Indian manufacturer. Branch Offices established with the approval of RBI, may remit outside India profit of the branch, net of applicable Indian taxes and subject to RBI guidelines .
Permission for setting up branch offices is granted by the Reserve Bank of India (RBI).
Requirements and Conditions of a Branch Office
- The name of Indian Branch office shall be same as parent company.
- The Branch office does not have any ownership, it is just extension of the existing 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.