Open a Branch in India
Updated on Monday 23rd October 2017
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A branch of a foreign company operating on the Indian market can be set up only for specific business activities. When starting a business in India that will be incorporated as a branch office, the representatives of the foreign company should receive an approval from the Foreign Exchange Department, Reserve Bank of India (RBI), situated in Mumbai. The Reserve Bank of India will verify the activity of the applicant company and further on, the foreign legal entity will need to submit specific company documents. Our team of agents in company registration in India can assist foreign investors with advice on the minimum requirements available for opening a branch office in one of the Indian cities.
Activities of a foreign branch office in India
In order to open a company in India that will perform its operations through a branch office, the applicant foreign business form has to conduct its activities in one of the following sectors:
• import – export of goods;
• consultancy services;
• research work, in a field of activity in which the parent company is already activating;
• technical or financial operations in collaboration with Indian companies;
• buying/ selling agents;
• providing services in the field of information technology and software;
• airline and shipping activities;
Foreign companies may also establish a branch office performing manufacturing activities, but in this case it is necessary to perform the business operations through an Indian company. Certain activities can’t be conducted through a branch office in India, such as the retail operations of any type.
Also, the branch office may not diversify its operations outside the scope of those that have already been approved by the Reserve Bank of India. Businessmen may find out further details on the above mentioned details from our team of specialists in company formation in India.
Registration requirements for a branch office in India
The procedure on how to form a company in India in this case may last several weeks. RBI will grant permission in a period of maximum 4 weeks, provided that all the requirements are met. The foreign company should include the following information in the application with this institution:
• the operations history of the parent company;
• the proposed operations that will be conducted in India;
• the reasons for opening a branch office in this country.
The application is comprised of a set of documents that must be submitted by the applicant and foreign companies are invited to contact our team of consultants in company formation in India for in-depth advice on this subject.