Branch/Representative Office Setup
Setting up a branch office or representative office in India allows foreign companies to establish a local presence without creating a separate legal entity. These structures provide operational flexibility while maintaining the parent company’s global identity and control.
Branch Office Setup
A branch office enables foreign companies to conduct active business operations in India, including manufacturing, trading, and service delivery. This structure is ideal for companies seeking direct operational control while leveraging India’s growing market opportunities.
Permitted Activities:
- Export and import operations
- Research and development activities
- Professional and consultancy services
- Information technology services
- Financial services (with sector-specific approvals)
Key Requirements:
- Minimum net worth of USD 100,000 for parent company
- Three years of profitable operations
- RBI approval and annual compliance
- FEMA regulations adherence
Regulatory Process:
- RBI Application Preparation: Comprehensive documentation including financial statements, business plan, and regulatory approvals
- FEMA Compliance Setup: Ensuring adherence to Foreign Exchange Management Act requirements
- Tax Registration: PAN, GST, and other applicable tax registrations
- Bank Account Opening: Assistance with local banking relationships and account setup
Representative Office Setup
Representative offices serve as liaison points for foreign companies, facilitating communication between parent companies and Indian entities. This structure is perfect for market research, promotion, and relationship building activities.
Permitted Activities:
- Market research and surveys
- Promotion of parent company products/services
- Facilitating business collaborations
- Acting as communication channel
- Providing information to Indian customers
Restrictions:
- No direct commercial activities
- No manufacturing or trading operations
- No revenue generation in India
- Cannot undertake any business activity
Advantages:
- Lower compliance burden compared to branch offices
- Simplified approval process
- Cost-effective market entry option
- Easier closure procedures if needed
Documentation Requirements
For Branch Office:
- Board resolution from parent company
- Certificate of incorporation of parent company
- Audited financial statements (3 years)
- Business plan and activity details
- Banker’s certificate confirming net worth
- Auditor’s certificate
For Representative Office:
- Application form with company details
- Certificate of incorporation
- Memorandum and Articles of Association
- Track record of parent company
- Business activities and justification
Compliance Obligations
Annual Requirements:
- Activity Certificate from Chartered Accountant
- Annual Performance Report to RBI
- Income tax returns filing
- FEMA compliance reporting
- Statutory audits and certifications
Ongoing Support: Our team provides continuous compliance management, ensuring your branch or representative office maintains good standing with all regulatory authorities while supporting your business objectives in India.