How Foreign Companies Can Register a Branch Office in India in 2026

India continues to be one of the most attractive destinations for foreign companies looking to expand their business globally. With a large market, skilled workforce, and strong economic growth, many international businesses plan to enter India in 2026. One of the most common and trusted ways to enter the Indian market is by registering a Branch Office.

This blog explains how foreign companies can register a Branch Office in India in 2026, the rules, eligibility, documents, process, and compliance requirements in simple and clear language.

What Is a Branch Office in India?

A Branch Office is an extension of a foreign company in India. It is not a separate legal entity. The branch works under the name and control of the parent company based outside India.

A Branch Office can carry out limited business activities such as:

• Export or import of goods
• Professional or consultancy services
• Research work
• Promoting technical or financial collaboration
• Acting as a buying or selling agent

However, a Branch Office cannot:

• Do retail trading directly
• Manufacture products in India (except under special approval)

Why Foreign Companies Choose Branch Office Registration in India

Foreign companies prefer a Branch Office because:

• It allows direct business presence in India
• It builds trust with Indian customers and partners
• It is suitable for companies already established abroad
• It is ideal for service-based and trading businesses

In 2026, with digital approvals and improved ease of doing business, Branch Office registration has become more streamlined.

Eligibility Criteria for Branch Office Registration in India

To register a Branch Office in India, a foreign company must meet the following conditions:

1. The company must be incorporated outside India
2. It should have a profit-making track record of at least 5 years in its home country
3. It must have a minimum net worth of USD 100,000
4. The proposed activities must be permitted under Indian laws

If these conditions are not met, the company may still apply under special approval routes.

Regulatory Authorities Involved

Branch Office registration in India is regulated by:

• Reserve Bank of India (RBI)
• Ministry of Corporate Affairs (MCA)
• Income Tax Department

All rules are governed under FEMA (Foreign Exchange Management Act).

Professional firms like Groom Tax help foreign companies understand and comply with these regulations correctly.

Step-by-Step Process to Register a Branch Office in India in 2026

Step 1: Prepare Required Documents

The foreign company must arrange and notarize the required documents in its home country.

Step 2: RBI Approval

An application is submitted to an Authorized Dealer (AD) Bank, which forwards it to RBI. In many sectors, approval is given under the automatic route.

Step 3: Receive Approval Letter

Once approved, RBI issues a Branch Office approval letter, which is valid for a specific period.

Step 4: Register with ROC (MCA)

Within 30 days of approval, the Branch Office must be registered with the Registrar of Companies (ROC).

Step 5: PAN, TAN & Bank Account

After ROC registration:

• Apply for PAN and TAN
• Open a bank account in India
• Appoint authorized signatories

Documents Required for Branch Office Registration

Commonly required documents include:

• Certificate of Incorporation of the foreign company
• Memorandum & Articles of Association
• Audited financial statements (last 5 years)
• Net worth certificate from a Chartered Accountant
• Board resolution for opening the Branch Office in India
• Power of Attorney in favour of the Indian representative
• Passport and address proof of authorized signatory

All documents must be notarized and apostilled.

Permitted Activities of a Branch Office

A Branch Office in India can legally carry out:

• Import and export of goods
• Consultancy and professional services
• Research and development
• Technical support to parent company
• Representing the parent company in India

Activities must strictly follow the scope approved by RBI.

Taxation of a Branch Office in India

Branch Offices are treated as foreign companies for tax purposes.

Key tax points:

• Income earned in India is taxable
• The corporate tax rate is higher than Indian companies
• GST registration may be required
• Annual tax returns must be filed

Expert guidance from professionals like Groom Tax helps foreign companies manage taxation and avoid penalties.

Compliance Requirements After Registration

Once registered, a Branch Office must follow ongoing compliance:

• Annual filing with ROC
• Filing of audited financial statements
• RBI annual activity certificate (AAC)
• Income tax returns
• FEMA compliance

Failure to comply can lead to fines or cancellation of approval.

Timeline for Branch Office Registration in India

In 2026, the average timeline is:

• Document preparation: 1–2 weeks
• RBI approval: 3–5 weeks
• ROC registration: 1 week

Total time: Around 6–8 weeks, depending on sector and documentation.

Common Mistakes to Avoid

Foreign companies should avoid:

• Incorrect or incomplete documents
• Choosing wrong business activities
• Ignoring RBI or FEMA rules
• Missing compliance deadlines
• Poor tax planning

Taking professional help from experienced consultants like Groom Tax reduces these risks.

Branch Office vs Subsidiary Company

Choosing the right structure depends on long-term business goals.

Is Branch Office Registration Right for Your Business in 2026?

Branch Office registration is ideal if:

• You want to test the Indian market
• You provide services or consultancy
• You want lower setup complexity
• You already have a strong overseas presence

For long-term expansion, other structures may also be considered.

Things to Keep in Mind

Registering a Branch Office in India in 2026 is a practical option for foreign companies looking to enter one of the world’s fastest-growing markets. While the process is well-defined, it involves legal, tax, and regulatory compliance that must be handled carefully.

With proper planning, correct documentation, and expert support from professionals such as Groom Tax, foreign companies can successfully establish their Branch Office Registration in India and operate smoothly without legal issues.