Branch office of foreign company in India:As the name suggest the Branch office is setup by a foreign company in India to carry out the Branch activity for its business. The foreign company can have any revenue from the Indian Branch office only from the activity allowed by the Reserve Bank of India; it has to meet all its expenses of Indian office through remittances from the Head office or through the revenue generated from the Indian operation permitted by the Reserve Bank of India.
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Branch office is suitable for a foreign company to test and understand the Indian market with a very strict control by the Reserve Bank of India, as it does allow the companies to do business but just to do the activity which are mentioned in the application of Branch office, Any additional activity to be carried by the Branch office shall be illegal. Branch office can carry additional business activities only with the prior approval from the Reserve Bank of India.
Currently as per the RBI Requirement the application for the branch office and Branch office is submitted through the Authorized dealer. The authorized dealer means the various institution having banking licenses.The applicant of the Branch/BRANCH office has to opt for the any of the Authorized Dealer, it is always preferable for the company to opt for the same authorized dealer as it is dealing in the home country.
NOTE - The above list is not exhaustive and may differ depending upon the requirement from the authorised dealer.
Foreign Company can open branch office in India due to several reasons; Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India subject to few Conditions:
The application for Branch office Licenses is approved by the RBI, but as per the recent changes the applications for Branch office are routed through the Authorized Dealers (AD). Due to this the timeline for setting up the Branch office has increased tremendously. Further the documentation required for the same has also increased to a great extent.
The application for establishing Branch Office in India should be forwarded by the foreign entity through a designated AD Category – I bank to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, Foreign Investment Division, Central Office, Fort, Mumbai-400 001, along with the prescribed documents including:
These applications are considered on a case-to-case basis. The RBI generally gives permission in a time span of about 2 to 4 weeks. The application must include the required documents.
Every Branch office registered with RBI shall get itself registered with the Ministry of Corporate Affairs, The foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC. On such registration a CIN i.e. Corporate Identity Number is allotted by the Registrar of Companies. Which required following document including:
There is no mechanism provided by the Government of India for the registration or incorporation of a Proprietorship. Therefore, the existence of a proprietorship is established only by tax registrations and other business registrations that a Proprietorship is required to have as per the rules and regulations. At Rajput Jain & Associates, we can help you establish an identity for your Proprietorship by obtaining the relevant registrations.
The process of Branch office of foreign company in India is mention in above, explaining the documentation and process of us establishment. We adopt a transparent method of pricing which is fixed and certain and same to all our customers. We do not have any discount policy. Our expertise in Branch office of foreign company in India is well known in India and outside India. We have helped many originations of all size and sector.