Branch Office Registration

Branch Office Registration Online in India has to be done to open a branch office of a foreign company to enjoy the liberty to operate the business in India. Branch Office is an authorized place in a different location to carry out similar trading transactions as operated by the Head Company or group companies. Want to start a branch office in India, WE are here to make work Branch Office Registration easy!

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Branch Office Registration - Overview

Every entity has its registered office in one place and that office means the head of all business operations from which all the important business execution and meeting is conducted and all types of transactions and communications are received. Generally, to expand its business operations, the company opens a branch office which may or may not be within the same location or state or country. It mostly depends on the demand of the business. The registration process of a private limited company is regulated by The Ministry of Corporate Affairs. Therefore, the company has to inform all the necessary execution taken place in the structure of the entity to the MCA.

It becomes executable for a foreign entity to operate their business in India and to execute that all they have to do is to register a branch office. The permission for the branch office registration is approved by Reserve Bank of India via AD category 1 Banker and additionally the foreign company registration has to be done with the ROC. A branch office of a foreign entity is conceived as a foreign entity.

By opening a branch office for a foreign company is always good as it enjoys the benefits for executing full-fledged business operations in India.

Activities that Branch Office can perform

It can carry on import & export of goods
It can provide consultant and professional services
It can conduct research activities in all those location where registered company is already actively needed
It can improve technical or financial dealing of the company on behalf of the head office.
It can work as a representative of a registered company and acts as a buying/selling agent of the company
It can delivers IT services such as filing returns, etc. and develops software in India
It can involves in the service of technical support for the services and products supplied by the head company
To act as an approved representative for a airline company or foreign shipping in India

Checklist to start a branch office in India

A company should start a branch office depending on the need and demand of the services or products of that company. And it also depends on the nature of the company or business.
Another important factor the company should keep in mind is the cost and taxes involved in the process of starting a branch office. The cost for setting up a branch office must be projected and must be planned in advance to make firm decisions. Additionally, The company must also check the terms of taxes included in the process.
Next important factor involved in starting a branch office is the market analysis in which location the company is planning to set up its branch office. The points to be considered in market analysis are as follows, location, competitors in that location, the demand for the product or service, culture of that particular location, etc.
The location in which the company is planning to start a branch office plays a vital role. The preferred location must consider the following factors competition, accessibility, availability of staff.
A company can start as many branches as needed to expand and to develop its business. There is no need to inform MCA for opening a branch office which is essential for changing the company’s registered office. But it is mandatory to take local registrations and inform authorities as needed by law.

List of documents needed for Branch Office Registration in India

Documents needed from Parent Company are follows

COI or Certificate of Incorporation
MoA and AoA of the company
List of Directors and Key Executives of the registered company
List of the shareholders of the applicant company
Net worth certificate signed by Certified Public Accountant (CPA)
Audited financial statement of last five preceding year’s
A statement from applicant’s banker

Documents Needed For The Company Registered Address

5 passport size photographs
5 copies of National Identity Card
5 copies of passport
A copy of Business Visa with along with Immigration Stamp of arrival on it
Latest Address Proof such as Electricity Bill or Phone Bill or Water Bill or Statement from bank
Power of Attorney in the AR name
Board Resolution charging the AR

Drafting of Government Forms and Documents

On obtaining the complete list of authentic documents required for the registration process, the next step is to draft the following documents to get the signature from the applicant company and the authorized personnel.

Board Resolution which stating about the starting of branch office in India
A declaration afforded by the applicant on the FDI eligibility and source of investment or fund.
A declaration stating the nature of the business activity will be conducted, the location of the business activity of the proposed branch office.
A declaration stating the nature of the business activity of the applicant company with the location in which the activity of the applicant company will occur.
Form FNC.
A letter of comfort or console from the holding company.

The Registration Process of Branch Office in India

Application For Digital Signature Certificate Of Authorized Signatory
The process of filing an application to the registrar of companies is followed online to get a DSC. And to authenticate the process of application for digital signature of the proposed shareholders and directors are required.
Filing Of Application With RBI Via AD Bank
An application to start a branch office is filed in FNC and it is filed to the Reserve Bank of India through AD Bank or Authorized Dealer. The Authorized Dealer bank has an important role as all the important communication to the RBI is carried through them.
Verification Of KYC From The Parent Company Banker
A request concerning the scrutiny of required documents is sent to the Parent company’s banker. This process of sending requests for the verification purpose is also called swift based verification. Once the documents are verified from the banker the application is forwarded for the approval purpose. The RBI/AD are also allowed to ask for the additional documents if required.
Approval Of RBI To Start A Branch Office Registration In India
The prescribed policy is followed to approve the branch office in India by the Authorized Dealer Banker itself. Priority is provided to the cases where an automatic route is not possible.
Registration Of Branch Office With ROC
Once the approval process is over, the RBI grants the permission to establish the Branch Office in India. To complete the process, an application is filled and submitted in form FC-1 for branch office registration within 30 days of such approval by the foreign company. DIN is needed if any Indian director and the digital signature is required of the authorized signatory for the e-filing statutory forms purpose with the ROC.
PAN Card, Tax Deduction Number And Bank Account Opening
The Income Tax department of India grants a unique 10 digit number, which is known as PAN number. Once the PAN number is received, the branch office can open its bank account. And it is mandatory for every taxpayer to receive the Tax Deduction Account Number to follow all the TDS norms.
GST Registration & IEC
On receiving the Bank Account and cheque book as the need arises for a copy of the check is required to file an application for GST registration and to receive Import Export Code.

Frequently Asked Questions

What is the Income Tax slab rate for a branch office of a foreign entity? +

A branch office of a foreign organization isn't considered as different in India. Starting at now the Income Tax rate on the benefit of a foreign organization is 40% as opposed to the judgment pace of 30% on an Indian organization company.

What are the eligibility criteria for registering a branch office in India? +

Pakistan Bangladesh Sri Lanka Afghanistan Iran China Hong Kong Macau Or any kind of application for opening of a branch office in Jammu and Kashmir, North East Region and Andaman and the Nicobar Islands.

What is Income Tax rate for a branch office of a foreign company? +

The net worth of the parent company must be above 100000 dollars and the company should have a profitability track report for the past five years.

What is branch business? +

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.

Is a branch office a legal substance? +

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.