Branch Office Registration
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Introduction
Branch Office Registration
A foreign corporation establishes a BRANCH office in India to carry out BRANCH activities for its business. The foreign firm can only generate revenue from the Indian Branch office if the Reserve Bank of India allows it; it must cover all of the expenses of the Indian office using remittances from the Head office or revenue generated from the Reserve Bank of India-approved Indian operation.
In India, foreign corporations are permitted to open a branch office. However, unlike forming a corporation, establishing a branch office necessitates clearance from the Reserve Bank of India (RBI). The foreign company can only begin operations after receiving a branch licence from the RBI.
Branch Office Features in General
- The Indian branch office's name must be the same as the parent companies.
- Reserve Bank of India is the Governing body for the branch office License.
- If the head office does not have money from Indian operations, it covers all of the expenses of the Branch office.
- Expanding its customer base by expanding its operations to new locations.
Benefits
Benefits of Branch Office Registration
Permissible Activities
Branch Office can undertake all types of profit making activity to promote business of its parent company.
Bank Account
A Branch Office may approach any AD Category-I bank in India to open an account for its operations in India.
Remittance of Profit
Profits earned by the Branch Offices are freely remittable from India, subject to payment of applicable taxes on production of prescribed documents to the satisfaction of the AD Category-I bank
Closure of Branch Office
Requests for closure of Branch Office and for remittance of winding-up proceeds needs to be submitted to designated AD Category - I bank along with prescribed documents.
Expenses of Branch office
Branch office is a representative of the foreign parent company, therefore expenses of such office may be met by the Head Office through inward remittances received in Convertible Foreign Exchange.
Extension of fund and non-fund based facilities
AD Category I Bank may extend Fund/Non Fund facilities to Branch Office on the basis of Board approved policy.
Process
Process for Branch Office Registration
Document Checklist
Documents Required for Branch Office Registration
5 copies of passport
5 passport size photographs
A copy of Business Visa with
Immigration Stamp
Power of Attorney in the name of AR
Board Resolution appointing the AR
Latest Address Proof
Faq
Frequently Asked Questions (FAQ)
A foreign company can open a branch office in India if it has a reputation of profit generation for as far back as five years and having sufficient capital resources. A budget summary properly verified by the legal inspector of the parent organization is required.
The rate of taxation is 40% exclusive of cess.
A branch office is an extended work premise of the business other than the head office. Most big corporations divide their workforce into branch workplaces. This comprise little divisions of various parts of the organization, such as HR, advertising, and accounting.
A Branch office is a progressively autonomous substance that conducts business in its name yet acts on behalf of the organization. A Branch isn't lawfully independent from the remote parent organization as it is likewise dependent upon the local laws administering the outside parent organization.
If a foreign firm has a five-year track record of profit generating and sufficient capital resources, it can operate a branch office in India. A budget summary that has been appropriately certified by the parent organization's legal inspector is required.
A branch office is a location, other than the head office, where the activities of business are led. Most branch offices comprise various parts of the organization in little divisions, for example, HR, accounting and advertising.
A Branch is an increasingly autonomous substance which conducts business activities in its own name but acts on behalf of the parent company. A Branch isn't legally independent from the remote foreign organization but it works as per the local laws administering the outside foreign company.
