Branch Office Registration for Foreign Companies
Operate Commercially in India with RBI Compliance
Establish full-fledged branch operations with a Branch Office—the premier structure for foreign companies seeking to trade, invoice, import-export, and provide services directly in India. A Branch Office grants your organization the legal presence required under FEMA to generate revenue, sign contracts, and open bank accounts while remaining an extension of your overseas headquarters.
Leverage Lawful Journey’s deep expertise to secure RBI approval, build robust compliance systems, and launch profitable Indian operations. From application drafting to ongoing FEMA, tax, and labor law management, our international business team delivers a turnkey solution that lets you focus on market growth while we safeguard your regulatory standing.
- Enter contracts, raise invoices, and collect revenue in India under FEMA rules
- Import, export, and trade goods or services across Indian borders without establishing a subsidiary
- Full repatriation of profits permitted after Indian tax compliance and statutory audits
- Enjoy the credibility of a regulated RBI structure trusted by government agencies and Indian partners
Why Choose Branch Office Registration?
A Branch Office is the go-to vehicle for multinational enterprises that require a revenue-generating footprint in India without incorporating a separate Indian company. Supervised by the Reserve Bank of India and governed by the Foreign Exchange Management Act (FEMA), it authorizes foreign entities to engage in trading, consultancy, research, import-export, and professional services. Over 2,800 international corporations currently run Branch Offices nationwide, demonstrating its popularity as a swift and compliant market-entry strategy.
Commercial Operations
Sell products or services, raise tax invoices, and sign contracts directly with Indian customers while retaining 100% foreign ownership.
Import & Export Trading
Carry out import-export transactions, facilitate logistics, and manage customs clearances with authorized dealer banks.
Service Delivery
Provide technical, professional, and consultancy services from within India, giving clients local support and on-ground expertise.
Repatriation of Profits
Transfer branch profits back to the head office after meeting Indian tax liabilities and maintaining audited statements.
Legal Continuity
Operate as the same legal entity as the parent company—no separate share capital, no complex ownership transfers.
Regulatory Credibility
Enjoy the confidence of Indian regulators, suppliers, and customers through RBI’s rigorous approval and monitoring framework.
Who Should Establish a Branch Office in India?
Foreign enterprises aiming for long-term market penetration, revenue generation, and direct customer engagement should choose a Branch Office. It suits manufacturing giants (without local factories), software and IT companies, trading houses, aerospace firms, and engineering consultants that need to invoice clients, import parts, and provide after-sales services inside India.
Eligible Foreign Companies
- Legally incorporated entities outside India with a profitable track record for at least 5 years (alternate criterion: net worth ≥ USD 100,000 for fast-track route)
- Positive net worth and audited financials demonstrating capacity to fund Indian operations
- Clean compliance history with no serious regulatory violations in any jurisdiction
- Defined business plan for Indian market entry, including projected turnover and activities
- Sector conformity with India’s FDI, FEMA, and sectoral caps (no activities in defense, atomic energy, or lottery without special clearances)
Permitted Activities
- Trading & distribution: Importing finished goods for wholesale distribution in India
- Professional services: Consulting, engineering, IT support, design services, and B2B solutions
- Research & development: Conducting R&D in sectors such as pharmaceuticals, robotics, and clean tech
- After-sales support: Warranty services, maintenance, and customer care for imported products
- Technology transfer: Collaborating with Indian companies on technology or IP licensing
- Import-export facilitation: Acting as buying/selling agent for parent company
Operational Restrictions
A Branch Office cannot engage in retail trading with end consumers, nor can it manufacture goods locally (except inside Special Economic Zones with separate permissions). All borrowings require prior RBI approval, and branch operations must remain consistent with the activities specified in the original approval letter.
Duration & Extensions
- Initial approval: Granted for 3–5 years and renewable in 5-year blocks upon demonstrating compliance
- Annual filings: Submission of audited financial statements, Form FNC, and Activity Certificates to RBI & DGFT
- Income-tax audit: Mandatory branch-level tax audit irrespective of turnover threshold
- Change requests: Any change in activities, location, or bank accounts needs fresh RBI permission
- Closure process: Voluntary or mandatory closure requires AD Bank scrutiny, tax clearances, and RBI consent
Step-by-Step Branch Office Registration Process
Feasibility & Strategy Advisory
We dissect your expansion goals, benchmark market entry options, and craft a Branch Office roadmap aligned with RBI regulations and commercial targets.
Document Compilation & Legalization
Gather and apostille parent-company charters, board resolutions, financial statements, and projected business plans required for the Form FNC application.
Authorized Dealer (AD) Bank Consultation
Select an AD Category-I bank, negotiate banking facilities, and obtain a KYC-based recommendation letter crucial for RBI approval.
RBI Application Filing (FNC Form)
Submit detailed electronic FNC application on FIRMS portal with all supporting attachments, parent company details, and proposed Indian activities.
Regulatory Liaison & Clarifications
Answer RBI or AD Bank queries, provide additional evidence, and coordinate video/physical meetings if requested by the central bank.
Branch Office Approval & Certificate Issuance
Receive the RBI approval letter (LO/BO/FNC/…) specifying permitted activities, validity, and reporting obligations.
Establishment of Office Premises
Finalize commercial lease, install IT infrastructure, and display mandatory signboard showing foreign company name and country of incorporation.
Tax & Statutory Registrations
Obtain PAN & TAN, GST registration, Shops & Establishments registration, and enroll for PF/ESI to start lawful hiring and invoicing.
Operational Kick-off & Compliance Monitoring
Launch Indian commercial activities with ongoing support for FEMA filings, accounting, payroll, transfer pricing, and profit repatriation.
Required Documents for Branch Office Registration
Parent Company Documents
- Certificate of Incorporation: Apostilled or notarized certificate proving legal formation in the home country
- Memorandum & Articles: Charter documents defining corporate powers, object clauses, and shareholding
- Audited Financials (5 Years): Balance sheet and profit-and-loss statements endorsed by licensed auditors
- Board Resolution: Resolution authorizing Indian Branch Office setup and appointing local representatives
- Power of Attorney: POA favoring Lawful Journey or nominated officers to act on behalf of the company
- Company Profile & Brochures: Background, products, global presence, and credentials to demonstrate sector experience
Representative/Signatory Documents
- Passport Copies: Notarized passports of authorized signatories and chief branch representatives
- Photographs & Specimen Signatures: Recent photos and signature cards for bank KYC verification
- Address Proof: Utility bill or bank statement of signatories (not older than 3 months)
- Curriculum Vitae: Professional resume showcasing experience and designation in parent company
- Employment Agreements: Signed contracts outlining roles, remuneration, and terms in Indian branch
Business Plan & Financial Projections
- Projected P&L (5 Years): Forecast of turnover, expenses, and profit repatriation schedule
- Activity Profile: Detail of products/services to be offered, target industries, and pricing models
- Staffing Plan: Indian and expatriate manpower requirements with hiring timelines
- Transfer Pricing Policy: Inter-company pricing framework for goods or services supplied to branch
- Marketing Strategy: Roadmap for customer acquisition, distribution channels, and promotional budgets
Banking & Compliance Documents
- AD Bank KYC Letter: Due-diligence confirmation from authorized dealer bank supporting FNC filing
- No-Objection Certificate (Premises): NOC from landlord for using premises as a foreign branch office
- Lease Agreement: Registered lease with stamp-duty payment proof covering at least 11 months
- Form 49A: PAN application form for branch office income-tax registration
- GST REG-01: Online GST application capturing principal place of business and authorized signatory
Why Choose Lawful Journey?
Rapid RBI Approval
Streamlined processing—average 45-60 days—via our proprietary documentation templates and direct liaison with AD Banks and RBI.
360° Compliance Coverage
We manage FEMA filings, GST returns, transfer-pricing reports, payroll, and statutory audits, eliminating compliance anxiety.
Market Entry Intelligence
In-depth sector analysis, competitor benchmarking, and localization advice to accelerate your Indian revenue curve.
One-Stop Operational Support
HR, accounting, visa processing, and vendor onboarding handled under one roof for seamless branch functioning.
Profit Repatriation Strategy
Tax-efficient repatriation planning, DTAA utilization, and foreign-currency management for hassle-free profit transfers.
Dedicated Relationship Manager
Single-point contact who tracks timelines, issues proactive alerts, and provides real-time regulatory updates.
Frequently Asked Questions
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A Branch Office can earn revenue and sign commercial contracts; a Project Office is limited to a specific contract, and a Liaison Office cannot undertake any income-generating business activities.
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Unlike a subsidiary, a Branch Office does not need paid-up share capital. The parent company funds operations via remittances, subject to transfer-pricing norms.
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Yes, additional offices may be opened by notifying RBI through the AD Bank, provided the original approval permits expansion and activities remain unchanged.
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Branch income is taxed at 40% (plus surcharge and cess) on net profits. Transfer-pricing and GST rules also apply, depending on the nature of supplies.
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Yes, profits after tax and audit can be remitted to the parent company without RBI permission, provided Form A2 and CA certificates are filed through the AD Bank.
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Branch Offices must file Annual Activity Certificates with RBI, audited financials with the Registrar of Companies, and income-tax returns each year.
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Manufacturing is not permitted (except in SEZs with separate approvals). For manufacturing, incorporate an Indian subsidiary or joint venture.
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With complete documents, RBI approval typically arrives in 6–8 weeks, followed by 2–3 weeks for PAN, GST, and other statutory registrations.
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Yes, foreign nationals may be employed after obtaining proper employment visas and FRRO registration where required.
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Startups with <5 years’ track record may still qualify under the net-worth route (USD 100,000) or by applying under the government approval channel with additional documentation.
Start Your Business Journey Today
Get a free consultation with a Lawful Journey expert. We’ll help you choose the right structure, explain the process, and get your company incorporated—fast, legally, and stress-free.
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