Establish a Branch Office of a Foreign Company
By foreign company with RBI & ROC Registration
A Foreign Company / Corporation can establish a branch in India by obtaining permission from the Reserve Bank of India (RBI) and subsequently registering it with the ROC and State Police. We have good relationships to deliver smooth services in India.
A foreign company can freely operate in India by registering a branch by obtaining approval of the reserve bank of India through AD category 1 Banker and further registration of the foreign company with the ROC. Such a branch office is treated as a foreign entity and is subject to higher Income Tax @ 40%.
The eligibility requirements for registration of a branch of a foreign corporation is explained in the below section, the application to establish is filed with to the AD Category 1 Bank, provided the applicant foreign entity is having sound financial track record of the past 5 years and in case the applicant is a subsidiary and not eligible, then the parent company or group company may remove the defect by issuing a Letter of Comfort (LOC).
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Important Conditions for Setting up a Branch office
Net Worth Requirement
The foreign parent company must have a profitable track record of five years in a row with a net worth of more than $ 1,00,000/- duly supported by financial statement.
Name of Branch Office
The name must be the same as that of the foreign parent company, and for each new office of such a branch office, a fresh approval is required from RBI with justification.
Profit Remittance Allowed
The profits of the branch office are freely allowed to be remitted from India to its parent company after payment of applicable taxes, after the audit if books of A/c.
Taxation in Indian
The income tax on the profits of the branch office of foreign entities in India is 40% plus surcharges as applicable. GST is applicable to the supply of goods or services.
List of Documents for Branch Office Registration
Document From Mother/Parent Company
- Certificate of Incorporation / Registration of Foreign Company
- Memorandum of Association (MOA) and Articles of Association (AOA)
- List of Details in respect of Directors/Key Executives
- Details of shareholders of the applicant company
- Net worth certificate attested by Certified Public Accountant (CPA)
- Audited financial statement of the last Five preceding years
- Banker’s Report from the applicant’s banker in the host country
Documentation for the Company Registered Address
- Colour Photo – 5
- Passport – 5 Copy
- Business Visa Copy with Immigration Stamp of arrival
- National Identity Card – 5 Copy
- Latest Address Proof (Bank Statement/ Electricity/ Water Bill/ Phone Bill)
- Board Resolution Appointing the AR
- Power of Attorney in the name of AR