Opening a branch in India
Opening a branch in India Options and Criteria for Foreign Investors Opening a Branch in India Some conditions for opening a branch for a foreign company in India. For particular purposes, a branch may be opened, and there are criteria and conditions for opening a branch in India.
Branch in India-Purposes Foreign companies, including U.S. firms, are allowed to establish branch offices in India for the following purposes: export / importation of products Professional or consulting services Conducting research work in which the parent company is engaged.
Promoting partnerships between Indian companies and the parent or overseas group company.
Representing India's parent company and serving as India's buying / selling agents.
Rendering facilities in IT and software production in India.
Rendering technical assistance to parent / group supplied goods.
International airline / shipping company International Banks A branch is not permitted to perform manufacturing activities on its own but is permitted to subcontract them to an Indian distributor. Branch offices established with RBI approval may remit branch income outside India net of applicable Indian taxes and subject to RBI guidelines The Reserve Bank of India (RBI) grants permission to establish branch offices.
Branch office specifications and conditions The Indian branch office name shall be the same as the parent company.
The branch office has no ownership, it's just an extension of the international exiting business.
All BRANCH office costs are covered by the head office, unless it has Indian operations revenue.
Global parent company seeking to open a branch office in India must have a profitable track record in the home country immediately preceding five years.
The Net Worth, i.e. sum of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Financial Statement certified by a Certified Public Accountant or any Licensed Financial Professional by any name shall not be less than or equal to USD 100,000.
A branch office is ideal for foreign companies looking to set up a temporary office in India and not involved or intending to have long-term plans for Indian operations; except for banks, shipping and airlines, etc.
Documents needed to establish a branch office in India Currently, as per the RBI Requirement, the branch office and BRANCH office request is submitted through the Approved dealer. Registered dealer means the specific entity has banking licenses.
To open a branch office in India, the following filings are required: Form FNC 1 (Three copies) Letter from the parent company's main officer to RBI.
Letter of authority from the parent corporation to Local Member.
Letter of authority / parent company resolution forming BRANCH office in India.
Comfort letter from the parent company to support India's service.
Two copies of the English edition of the parent company's Certificate of Incorporation, Memorandum & Articles of Association (Charter Document), duly certified by the Indian embassy or notary in the country of registration.
Incorporation Registration-Duly Notarized and fully authenticated.
The new audited parent company's balance sheet and financial statements duly notarized for the past three years and correctly authenticated Home Country registered person's name, address, email ID and telephone number.
Information of the Organization of the Country of Origin bankers along with the Organization's bank account number Commitment to be open to report / opinion sought from its banker by the Government of India / Reserve Bank of India Expected funding rates for operations in India.
Data Relating to the address of the proposed local office, number of individuals likely to be working, number of Foreigners among these workers and address of the Head of Local Office, if the applicant entity determines Data of the operation carried out in Home Country in brief on the company's goods and services in Brief.
Bankers Certificate Latest proof of identity of all Directors — Properly certified by Banker in Home Country and duly authenticated Latest proof of address of all Directors — Properly certified by Banker in Home Country and duly authenticated Information of individuals / company holding more than 10% of the Organization's equity structure and its shareholding pattern Full KYC of S The timetable for setting up the BRANCH office has improved tremendously. Also, the documentation needed for the same has greatly increased.
Other Incorporation Conditions for Branch Office Per branch registered with RBI is registered with the Ministry of Corporate Affairs, a branch registration as a foreign business establishment in India. On such registration the business registrar allocates a CIN i.e. Corporate Identity Code. The following documents shall be filled in with the Registrar of Companies: Form 44 Constitution, Statutes or Memorandum and Articles of Association or other Document constituting or establishing the constitution of the Company(In the manner provided for in Rule 16, 17 of the General Rules and Forms of the Companies (Central Government), 1956) If the above documents are not in English, they shall be translated.
Director(s) Details — Private Director(s) Details — Corporate Reserve Bank of India Approval letter Secretary(s) Details Power of Attorney or Board Resolution in favor of Authorized Members.
Post Incorporation Procedural Requirements Upon Incorporation, the following requirements for a branch office are also necessary: Permanent account number — PAN tax deduction number — tan number Shop & business GST registration if the branch offers any services in India.
Annual enforcement activities necessary for a Branch Office Each year a Branch Office is expected to perform the following activities: Management of Account Books Having Annual Accounts Audited Completion of Annual Operation Certificates with RBI Completion of Annual Return and Balance sheets with Company Registrar Intimating any improvement in the Foreign Company's constitution to RBI & ROC
See also Annual Corporate Filings for India Corporate Maintenance Requirements.
How to close a branch office in India is usually approved for three years. If a company decides to close the branch office setup in India, it will file the requisite documents with the RBI via its Registered Dealer.
The closure application usually requires the following: copy of permission / approval by the Sectoral Regulator(s) of the Reserve Bank to create the BO / LO.
Auditor's certificate: I the manner in which the remittable sum was collected and confirmed by the applicant's statement of assets and liabilities and the manner in which the assets were disposed of; (ii) the assurance that all liabilities in India, including gratuity and other employee benefits, etc., of the Company were either entirely or adequately fulfilled;
No-objection / Tax Clearance Certificate from the Income-Tax remittance authority / s.
Confirmation from the applicant / parent company that no legal proceedings are pending in any court in India and there is no legal impediment to remittance.
A letter from the Registrar of Companies on accordance with the provisions of the Companies Act, 1956 when the Office is terminated in India.
Any other document / s defined by Reserve Bank during approval.
Branch office on 'Stand Alone' in India Stand Alone Branch offices are isolated and restricted to the Special Economic Zone (SEZ) alone and no business activity / transaction is permitted outside of SEZs in India, which include branches / subsidiary branches of its parent office in India. No permission is required from RBI for a company to create a branch / unit in SEZs to conduct manufacturing in India.here to edit.
Branch in India-Purposes Foreign companies, including U.S. firms, are allowed to establish branch offices in India for the following purposes: export / importation of products Professional or consulting services Conducting research work in which the parent company is engaged.
Promoting partnerships between Indian companies and the parent or overseas group company.
Representing India's parent company and serving as India's buying / selling agents.
Rendering facilities in IT and software production in India.
Rendering technical assistance to parent / group supplied goods.
International airline / shipping company International Banks A branch is not permitted to perform manufacturing activities on its own but is permitted to subcontract them to an Indian distributor. Branch offices established with RBI approval may remit branch income outside India net of applicable Indian taxes and subject to RBI guidelines The Reserve Bank of India (RBI) grants permission to establish branch offices.
Branch office specifications and conditions The Indian branch office name shall be the same as the parent company.
The branch office has no ownership, it's just an extension of the international exiting business.
All BRANCH office costs are covered by the head office, unless it has Indian operations revenue.
Global parent company seeking to open a branch office in India must have a profitable track record in the home country immediately preceding five years.
The Net Worth, i.e. sum of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Financial Statement certified by a Certified Public Accountant or any Licensed Financial Professional by any name shall not be less than or equal to USD 100,000.
A branch office is ideal for foreign companies looking to set up a temporary office in India and not involved or intending to have long-term plans for Indian operations; except for banks, shipping and airlines, etc.
Documents needed to establish a branch office in India Currently, as per the RBI Requirement, the branch office and BRANCH office request is submitted through the Approved dealer. Registered dealer means the specific entity has banking licenses.
To open a branch office in India, the following filings are required: Form FNC 1 (Three copies) Letter from the parent company's main officer to RBI.
Letter of authority from the parent corporation to Local Member.
Letter of authority / parent company resolution forming BRANCH office in India.
Comfort letter from the parent company to support India's service.
Two copies of the English edition of the parent company's Certificate of Incorporation, Memorandum & Articles of Association (Charter Document), duly certified by the Indian embassy or notary in the country of registration.
Incorporation Registration-Duly Notarized and fully authenticated.
The new audited parent company's balance sheet and financial statements duly notarized for the past three years and correctly authenticated Home Country registered person's name, address, email ID and telephone number.
Information of the Organization of the Country of Origin bankers along with the Organization's bank account number Commitment to be open to report / opinion sought from its banker by the Government of India / Reserve Bank of India Expected funding rates for operations in India.
Data Relating to the address of the proposed local office, number of individuals likely to be working, number of Foreigners among these workers and address of the Head of Local Office, if the applicant entity determines Data of the operation carried out in Home Country in brief on the company's goods and services in Brief.
Bankers Certificate Latest proof of identity of all Directors — Properly certified by Banker in Home Country and duly authenticated Latest proof of address of all Directors — Properly certified by Banker in Home Country and duly authenticated Information of individuals / company holding more than 10% of the Organization's equity structure and its shareholding pattern Full KYC of S The timetable for setting up the BRANCH office has improved tremendously. Also, the documentation needed for the same has greatly increased.
Other Incorporation Conditions for Branch Office Per branch registered with RBI is registered with the Ministry of Corporate Affairs, a branch registration as a foreign business establishment in India. On such registration the business registrar allocates a CIN i.e. Corporate Identity Code. The following documents shall be filled in with the Registrar of Companies: Form 44 Constitution, Statutes or Memorandum and Articles of Association or other Document constituting or establishing the constitution of the Company(In the manner provided for in Rule 16, 17 of the General Rules and Forms of the Companies (Central Government), 1956) If the above documents are not in English, they shall be translated.
Director(s) Details — Private Director(s) Details — Corporate Reserve Bank of India Approval letter Secretary(s) Details Power of Attorney or Board Resolution in favor of Authorized Members.
Post Incorporation Procedural Requirements Upon Incorporation, the following requirements for a branch office are also necessary: Permanent account number — PAN tax deduction number — tan number Shop & business GST registration if the branch offers any services in India.
Annual enforcement activities necessary for a Branch Office Each year a Branch Office is expected to perform the following activities: Management of Account Books Having Annual Accounts Audited Completion of Annual Operation Certificates with RBI Completion of Annual Return and Balance sheets with Company Registrar Intimating any improvement in the Foreign Company's constitution to RBI & ROC
See also Annual Corporate Filings for India Corporate Maintenance Requirements.
How to close a branch office in India is usually approved for three years. If a company decides to close the branch office setup in India, it will file the requisite documents with the RBI via its Registered Dealer.
The closure application usually requires the following: copy of permission / approval by the Sectoral Regulator(s) of the Reserve Bank to create the BO / LO.
Auditor's certificate: I the manner in which the remittable sum was collected and confirmed by the applicant's statement of assets and liabilities and the manner in which the assets were disposed of; (ii) the assurance that all liabilities in India, including gratuity and other employee benefits, etc., of the Company were either entirely or adequately fulfilled;
No-objection / Tax Clearance Certificate from the Income-Tax remittance authority / s.
Confirmation from the applicant / parent company that no legal proceedings are pending in any court in India and there is no legal impediment to remittance.
A letter from the Registrar of Companies on accordance with the provisions of the Companies Act, 1956 when the Office is terminated in India.
Any other document / s defined by Reserve Bank during approval.
Branch office on 'Stand Alone' in India Stand Alone Branch offices are isolated and restricted to the Special Economic Zone (SEZ) alone and no business activity / transaction is permitted outside of SEZs in India, which include branches / subsidiary branches of its parent office in India. No permission is required from RBI for a company to create a branch / unit in SEZs to conduct manufacturing in India.here to edit.
