Set up a Branch Office in India

A foreign company can smoothly operate in India by opening a Branch Office. The parent company must obtain approval from the Reserve Bank of India, and get the registration done with ROC prior to branch office setup. This type of branch office gets treated like a foreign entity and is liable to pay higher Income Tax up to 40%.

Before we proceed, you must know that you have to be eligible first to get your branch office registered in India. The application form for the same needs to be filed with the AD Category 1 Bank, given that If the foreign company is a subsidiary and ineligible, then the parent company must have issued a Letter of Comfort (LOC).

Know More about Branch Office

Requirements for setting up a Branch Office

Any foreign company who meets the eligibility criteria can set up a Branch Office in India. But along with that, companies need to satisfy the following conditions –

  • The name of the Branch Office has to be the same as the parent company.
  • The applicant entity needs to have a profitable and steady financial track record for the past 5 years.
  • If the branch office does not generate any revenue, then all of their financial obligations need to be fulfilled by the parent company abroad.
  • The total paid-up capital or the net worth according to the latest Audited Balance Sheet, or statement of Account certified by a Registered Accountant must not be less than or equal to USD 100,000.
Permitted Operations of Branch Offices

Foreign businesses starting their branch offices in India are allowed to operate in the following sector

  • Offering consultancy services or professional services
  • Indulge in export or import goods
  • Proceed with research work in the field the parent company is engaged
  • Acting as a selling or buying agent for the parent company while representing the company in India
  • Promotion of financial and technical collaborations with the Indian companies
  • Offering services in the field of IT and Software development
  • Offering technical support for the parent company product
  • Running foreign airline or shipping company

However, as per government regulations, a branch office can’t indulge in manufacturing activities, but they can subcontract their manufacturing needs to an Indian company.

Required documents to form a Branch Office in India

According to the RBI rules, the application for opening a Branch Office in India should be submitted only by an Authorized dealer. An authorized dealer means an institution which has banking licenses. However, have a look at the documents, which are required to open a Branch Office in India.

  • Three copies of Form FNC 1
  • The letter of authority, issued by a parent company to favour the Local Representative
  • A comfort letter from the parent company which is provided in support of the operation in India
  • Letter of authority or Resolution from the parent company for building a Branch Office in India
  • The letter, issued by the principal officer of the foreign parent company to RBI
  • Two copies of the Certificate of Incorporation in English, Memorandum & Articles of association of the parent company, which is attested by the Indian notary public or Indian embassy in the country of registration
  • Latest audited balance sheet along with annual accounts of the parent company, which is translated notarized for the past 3 years and adequately authenticated
  • Certification of Incorporation- Duly Notarized, Translated and properly authenticated
  • Name, email id, address and phone number of the authorized person in the home country
  • Organization’s commitment to the effect that it will be open to opinion sought or reported from the banker by the Reserve Bank of India or Government of India
  • Details of the Bankers of the Organization including country of origin and bank account number
  • The expected funding amount for operating in India
  • Details of the activity done by the parent company, in the foreign country including a brief on the product and services of the company
  • Address of the proposed Branch Office, how many persons are going to be employed, how many foreigners will be there, and address of the head office of the same Branch Office, located outside India
  • Bankers certificate
  • Latest identity and address proof of all the Directors, which are properly certified and authenticated by the banker in Home Country
  • Resolution for initiating a bank account with the banker
  • Structure of the company and its shareholding pattern
  • Details of the company of an individual who is holding more than 10% share
  • Complete KYC of the shareholder who has 10% stakes on the applicant company
  • A signed copy of the bank account opening proof in Indian Bank

RBI approves the license, which is required to open a Branch Office in India. But, according to the latest changes, this application process is not routed through the Authorized Dealers (AD).

Other Mandatory RoC Compliance Requirements for Setting up the Branch Office in India

Not only the RBI registration, but foreign entities looking to set up branch offices in the country also need to register with the Ministry of Corporate Affairs as well. As the registration gets completed, the Register of Companies allots CIN (Corporate Identity Number) to the branch office. However, the branch office is required to meet certain compliance requirements. Have a look at the list below,

  • Filling of Form 44
  • Need to furnish memorandum or statutes, charter along with articles of association in the English language
  • Details of the directors- individuals
  • Director details- corporate bodies
  • Approval letter from Reserve Bank of India
  • Details of the secretary/secretaries
  • Board resolution or power of attorney in favour of the authorized representative.
Procedural Requirements After Incorporation of the Branch Office

After successfully incorporating the branch office in India businesses need to get the following things done-

  • Getting a Permanent Account Number- PAN
  • A Tax Deduction Number- TAN
  • Registering with the state police
  • GST registrations if the branch is looking to provide any service in the country
How Can VJM & Associates LLP Help?

Having professional experience for long VJM & Associates LLP can help foreign companies to meet all the registration and compliance needs to set up branch offices in India. If you are looking to set up a branch office in India here is how VJM & Associates LLP can help you,

  • Complete assistance with documentation
  • Filing the Form FNC to RBI via registered AD Bank
  • Digital Signature for the Authorized Signatory
  • Getting PAN & TAN for the company
  • Support for opening the bank account
  • Assistance with GST registration
  • Complete support with RoC registration
  • Assistance in getting Import Export Code (IEC)
  • Help with Government fee and taxation

What people say about us

What our clients say about us

By taking care of our Internal control policies and procedures, VJM Team have made sure that experience is hassle free.

Mr. sachin Jain
CFO, mahle filter system (i) pvt limited

Very professional approach from VJM Team, they got associated with us late in the financial year but were able to conduct an in depth audit and highlight the areas to be addressed within a short span of time. What gives us confidence is that they are available for consultation on any financial matter and are quick to find and implement the resolution

Mr. Shobit Bhatnagar
Gradeup.co

VJM team is a thoroughly professional chartered accountants equipped with all resources and with deep understanding of GST and other contemporary arenas of corporate consultancy. Have interacted with them for various tax and corporate law related matters and found the interaction quite useful.

Mr. Pawan Ladha
Freecharge

We are Repaibays Experts LLP. We are a new company and have just started our business in the field of AC charger installation. We have retained M/S VJM & Associates LLP; Chartered Accountants as CA for our company. They have a fairly large sized office and team and the whole environment seems professional and well organised: something which is very critical in this kind of business We wish VJM very well and am sure they are already a name to reckon with in the field of providing professional CA services !

Mr. Rajesh Singh
CEO, Repair bays

The dedication and commitment of VJM Team is par excellence.  The team has handled the entire GST refund claim filing process very professionally within their immense experience and expertise.  Coupled with complete attention to detail at every stage and rigorous follow ups, VJM Team has supporrted us through the GST export refund and all GST Compliances.

Mr. Sumit Rajani
CEO, Umenders Exports

I hired VJM Associates and now I can completely focus on my business because I know there’s someone who is managing my accounts properly. Their team (including Khushboo and Jayant) are super supportive and friendly. I highly recommend VJM Associates. Give them a try! You won’t be disappointed

Mr. Vikrant Shaurya
CEO, bestsellingbook.com

We give full credit to VJM for streamlining our company’s GST compliance. Their dedicated team of learned professionals have a focussed approach & exceptional clarity when it comes to any questions pertaining to GST. I can say, without their support, it would not have been possible for us to sail past the initial turbulent period when GST was launched. Our best wishes always with them !

Mr. Siddharth Gupta
CEO, Craft Home-Export House

Highly recommended …
 “We have been clients of VJM associates for a few years now and have built up a great relationship with them. They are very professional but approachable and always willing to listen and provide valuable advice when needed. Their knowledge of financial and accounting matters is exceptional, and I really appreciate their responsiveness to any questions or queries we have.
A large part of any working relationship comes down to personalities and we've always found the VJM team friendly and trust them to do the best for our business”

Mr. Anuj Jain
CEO, Berkman Forwarding

GST Services

Know more about our complete portfolio of GST Services.

Business setup in India

The global economic growth has already started its journey of shifting towards developing nations. Being one of the fastest-growing economies in the world, India offers plenty of opportunity to businesses looking to expand their operations in India. A physical existence is what you need to break into India’s developing business sector. However, the right kind of presence can be the make or break.

Learn More

Liaison Office

A foreign company can smoothly operate in India by opening a Branch Office. The parent company must obtain approval from the Reserve Bank of India, and get the registration done with ROC prior to branch office setup. A corporate body formed outside India willing to open their branch office in the country needs to get permission from the Reserve Bank under the FEMA act 1999.

Learn More

Project Office

Foreign companies looking for a limited presence in India should opt for setting up a project office in the country. It is the ideal method for companies who have the objective of completing a project within a specific time frame. Foreign companies need to get approval from the Reserve Bank of India and register themselves with the RoC if they have a contract to execute a project in India.

Learn More

Transfer Pricing

Transfer pricing is all about determining the nature, treatment and taxability of intra-group transactions across several geographies. The transaction is put to test by the determination of arm’s length price of the transaction as per the prescribed transfer pricing methodologies.

Learn More

FEMA Advisiory

We are the market leaders to deliver a higher-quality accounting and reporting solution to our clients more quickly and efficiently in an environment of technological change, digital demonstration, could computing, online bookkeeping and GST filing, and increased regulatory changes and scrutinizes.

Learn More

Taxation of Expatriates

We are the market leaders to deliver a higher-quality accounting and reporting solution to our clients more quickly and efficiently in an environment of technological change, digital demonstration, could computing, online bookkeeping and GST filing, and increased regulatory changes and scrutinizes.

Learn More

Why Choose Us

Client Centric Approach

Client is the key driver of our service offerings. Our approach to service offerings is based on a client centric and customized approach. Our specialized teams are a mix of technical and industry experience in order to serve clientele for their specific needs.

Quick Turnaround

We always endeavour for a quick turnaround time to serve our clientele. We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.

Team Work


We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, cultural, social and ethnic backgrounds. We believe that this diversification plays a vital role in motivating the team into High Performing Teams.

Open Communications

We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele. We are committed to ensuring transparency in communication, service offerings and delivery.

Driving quality in delivery

Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.