India has become one of the world’s most attractive business destinations, offering a vast market, skilled workforce, and expanding investment opportunities. Many global companies choose to enter India through a Branch Office, as it allows them to undertake commercial activities while maintaining full foreign ownership.
This guide explains the complete process for setting up a branch office in India, along with documentation, eligibility, legal requirements, and timelines.
What Is a Branch Office in India?
A Branch Office is a foreign company’s extension in India that carries out the same business activities as its parent company. It is not a separate legal entity but operates under the approval of the Reserve Bank of India (RBI) and must be registered with the Registrar of Companies (ROC).
A Branch Office is ideal for:
- Companies wanting to expand operations in India
- Firms looking to represent their products and services
- Businesses that need to execute contracts, provide technical support, or promote parent company activities
Why Foreign Companies Choose a Branch Office in India
- 100% foreign ownership permitted
- Ability to perform profit-generating activities (unlike Liaison Office)
- Freedom to invoice Indian customers directly
- Low setup time and clear regulatory structure
- Strong base to explore the Indian market before establishing a subsidiary
Who Can Set Up a Branch Office in India?
A foreign company interested in starting a company in India as a foreigner through a Branch Office must meet the following conditions:
- The parent company must have a profit-making track record of at least 5 years.
- It must have a net worth of USD 100,000 or more (or equivalent).
- The proposed activities must fall within RBI-permitted categories.
Companies from FATF non-compliant countries or restricted sectors require additional scrutiny.
Activities Permitted for a Branch Office in India
Branch Offices can carry out:
- Import/export of goods
- Professional consultancy services
- Research activities in the parent company’s domain
- Providing technical support or services
- Representing parent company in India
- Acting as an authorized buying/selling agent
- IT and software-related services
- Execution of projects or contracts
Activities such as retail trading, manufacturing, and agriculture are not allowed.
Step-by-Step Procedure for Registration of a Foreign Company in India (Branch Office)
Below is the complete procedure for registration of a foreign company in India through a Branch Office.
1. RBI Approval
Foreign companies must apply to the Reserve Bank of India (RBI) through the AD Category-I bank. The application includes the company profile, financial statements, and details of proposed activities.
2. Documentation and Verification
Documents required include:
- Certificate of Incorporation
- Memorandum & Articles of Association
- Board Resolution for branch setup
- Audited financial statements of the last 5 years
- KYC of authorized representatives
- Details of parent company’s business operations
All documents must be notarized and apostilled/consularized.
3. Registration with the ROC
After RBI approval, the Branch Office must be registered with the Registrar of Companies under the Companies Act, 2013.
This step creates its legal presence in India for compliance and taxation.
4. PAN, TAN, and Bank Account
The Branch Office must obtain:
- PAN (Permanent Account Number)
- TAN (TDS Account Number)
- Bank account under the BO name
5. GST Registration (If Applicable)
If the Branch Office will supply goods or services, GST registration becomes mandatory.
6. Operational Setup
After compliance, the office can begin invoicing, hiring employees, entering contracts, and carrying out approved business operations.
Timeline and Cost for Branch Office Registration in India
- RBI Approval: 3–4 weeks
- ROC Registration: 1–2 weeks
- Overall Setup Time: Approximately 30–45 days
Costs may vary depending on documentation, attestation, professional fees, and government charges.
Compliance Requirements After Setting Up a Branch Office
A Branch Office must follow these ongoing compliances:
- Annual filing with ROC
- Filing of income tax return
- Statutory audit of accounts
- Filing of Activity Certificates with the RBI
- GST returns (if registered)
- TDS compliances
- FEMA regulations for foreign remittances
Branch Office vs Subsidiary Company: Which Is Better?
| Criteria | Branch Office | Subsidiary Company |
|---|---|---|
| Ownership | 100% foreign ownership allowed | 100% foreign ownership allowed |
| Legal Status | Direct control by the parent | Separate legal entity |
| Taxation | Higher tax rate | Standard corporate tax |
| Control | Contract execution, technical support, and trading | Independent management possible |
| Best For | Contract execution, technical support, trading | Long-term investment, operations, scaling |
A Branch Office is ideal for companies needing a quick entry into India without forming a separate company.
Why Choose Groomtax for Branch Office Registration in India?
Groomtax specializes in foreign company registration in India, offering complete assistance from documentation to compliance. Our experts handle:
- RBI approval
- ROC registration
- Documentation & attestation
- PAN/TAN/GST
- Legal compliance and advisory
- Full setup support
- Financial and tax planning
With strong experience in regulatory processes, we provide a smooth, end-to-end solution for global companies entering India.
Conclusion
Setting up a Branch Office in India is one of the most efficient ways for foreign companies to enter the Indian market. Understanding the legal requirements, documents, and compliance is essential to avoid delays and ensure smooth operations.
With expert guidance, the entire process can be completed within a few weeks, enabling you to unlock India’s vast business potential.
