Register at the branch office.

Simple Process and Transparent Fee, All India Tax Registration and Returns

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Basic overview
Registration Process

Branch Office Registration

Foreign corporations and companies can establish a branch of their business in India by obtaining permission from the Reserve Bank of India and registering it with the ROC or State Police. We can offer smooth services in India because of our good relationships.

Branch Office of a Foreign Company

A foreign company can legally operate in India by registering a branch. The bank must approve the branch through an AD Category 1 banker to do this. The income tax rate of 40% is higher for a branch office not treated as a foreign business entity.

Letter of Comfort from a Holding Company

Legalization of Documents: All documents originating from a third country or signed or executed by a third country must be legalized via the Indian Embassy or an apostil led by the Hague Convention. India Branch Office Registration Process and Timeline for Digital Signature Application of Authorized Signatory A digital signature, which is the same as a physical or printed signature under the Information Technology Act, can be considered the equivalent of a physical or written signature. According to this new process, all company registrar applications are filed in digital format. These must be authenticated using the digital signature of the proposed shareholders or directors. All promoters' digital signatures are issued as part of the filing process.

Applying to the RBI via AD Bank

The prescribed form is used to apply for the registration of a branch bank of a foreign corporation. The AD Bank plays a key role, as all communication to the RBI must be routed through them. We can obtain approval quickly because of our excellent relationships with Indian banks. Permissions granted once are valid for six months. You may request an extension if necessary.

Banker of the Parent Company Verification of KYC

After the FNC Form is submitted, the AD Bank sends a request for verification documents to the foreign banker. This process is also known as "swift-based validation. The next stage of approval occurs after receiving confirmation from the foreign banking institution. The RBI/AD Banker might request clarification or add-on documents.

Approval of RBI Branch Office Registration in India

There is a policy that the AD banker must approve the establishment of a branch office. Cases will be forwarded to the RBI for approval if the automatic route is impossible. After a quick verification, approval can take up to a week.

Registering a branch office with the ROC

The RBI approves the establishment of branch offices in India. Within 30 days, the FC-1 application is submitted for registration. If there are Indian directors, the DIN number of such directors is required. Additionally, the digital signature and authorization of the authorized signatory are required to file the ROC's statutory forms.

PAN Card, Bank Account Open

The Income Tax Department issues a unique 10-digit alphanumeric number to each taxpayer as a permanent number. This is also known as the PAN number. Every taxpayer must have a tax deduction number to comply with TDS requirements. These identification numbers are vital for compliance with tax rules. After the Income Tax Department has allotted the PAN number, the branch account can be opened.

Register with the State Police.

Finally, the branch must register it at the state police office (in the office of a superintendent of police). All authorized Indian and foreign persons must sign the RBI approval.

GST registration and IEC

Once the branch office has received the bank account and the checkbook, we will need a copy to apply for GST registration.

List of Documents Required for Branch Office Registration

S.No A. Mother/Parent Company B. B.
Certificate of incorporation or registration for foreign companies Color Photo: 5
Memorandum of Association and Articles of Association Passport 5 Copy
List of details about directors and key executives Copy of Business Visa with Immigration Stamp
Details about the shareholders of the applicant firm National Identity Card, 5 copies
A certified public accountant has attested the net worth certificate. Latest address proof (bank certificate, electricity bill, water bill, or phone bill)
Audited financial statements from the previous five years Board resolution nominating AR
Banker's Report by the applicant's banker at the host nation AR Authorization for Power of Attorney

Preparation and Documentation for the Registration of the Branch Office

Check your eligibility to register a branch office in India. The establishment of a business place in India by a foreign company or corporation in India is governed under the Foreign Exchange Management Act (Establishment, in India, of a branch, liaison office, or project office) Regulations 2016. These are the most important qualifications for setting up a branch office. Only eight activities are allowed for the branch office. For details, see the Permitted Activities Branch Office.

  • The net worth of foreign head offices must be greater than $100,000.
  • The applicant company should be able to demonstrate profitability over five years.
  • Basic documentation is essential for the smooth processing of the application to establish a branch office. Provides the required list. You may download the questionnaire to send information to us.
  • Document and Form Drafting: Once we have all the necessary documents, we will begin to draft the documents required for signing by the company applying and the signatory.
  • Board Resolution authorizing the opening of a branch office in India
  • Declaration by the applicant regarding FDI eligibility.
  • Declaration about the nature of this activity, the proposed BO's location, the nature of it, and the company performing the activity.
  • Form FNC

What activities can a branch office of a foreign entity carry out in India?

An Indian branch office of an offshore-incorporated foreign company may engage in any activities approved or permitted for furtherance of their parent company's objectives in compliance with RBI notifications. Please click to view a list of permitted activities for branch offices in India.

What is the income tax rate for a branch office of a foreign company in India?

A branch office of a foreign mother company in India is not treated as an independent and distinct entity, and, thus, for all tax purposes, their profits are taxed at higher rates—40% as opposed to 30% in relation to Indian companies.

Step 1: Requirements for Net Worth

The foreign parent must have a record of profit for five consecutive years with a net value of more than $1,00,000.

Step 2: Profit Remittances Allowed

After paying any applicable taxes and auditing the books of A/C, profits from the branch offices are allowed to be transferred from India to their parent company.

Step 3: Name of the branch office

Names must be the same as those of foreign parent companies. For each branch office such as this, the RBI will require new approval.

Step 4: Indian taxation

The income tax payable on profits at branch offices in India of foreign entities is 40%, plus any applicable surcharges. The supply of goods or services is subject to GST.

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