What is Branch Office Registration

A foreign company can set up a branch in India, but it needs to go through some steps. First, they need to get approval from the Reserve Bank of India with the help of a specific type of bank. After that, they have to register the branch with the Registrar of Companies (ROC). This branch is considered a foreign entity, and it has to pay a higher income tax rate, which is 40%.

To be eligible for this registration, the foreign company should have a strong financial track record for the past 5 years. If the foreign company is a subsidiary and doesn’t meet the eligibility criteria, the parent company or a related company can fix this by providing a Letter of Comfort (LOC).

Application Requirements for Branch Office Registration

1. Financial Requirement: The foreign company must meet a specific net worth requirement to set up a branch office in India.
2. Profit Repatriation: A branch office can remit its profits back to its home country, subject to certain regulations.
3. Naming: The branch office must adhere to naming conventions specified by Indian authorities.
4. Taxation: The branch office is subject to Indian taxation laws and may be subject to a higher income tax rate as a foreign entity operating in India.

Documents Needed to Register a Branch Office Registration

• From the Parent Company:
  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Incorporation
  • List of Company Directors and Key Executives
  • List of Shareholders
  • Certified Public Accountant’s Net Worth Attestation (CPA)
  • Audited Financial Statements for the Last Five Years
  • Banker’s Report from the Host Country
• For Office Address Registration:
  • Five Passport Copies
  • Five Passport Photos
  • Copy of Business Visa with Entry Stamp
  • Five Copies of National Identity Cards
  • Recent Address Proof (e.g., Utility Bill, Bank Statement)
  • Power of Attorney in the Name of Authorized Representative (AR)
  • Appointment of AR through Board Resolution
• Government Forms and Documents:
  • Board Resolution Approving Branch Office Establishment
  • Declaration on Foreign Direct Investment Eligibility and Funding Source
  • Statement Describing Business Activities and Office Location
  • FNC Form
  • Letter of Assurance from the Parent Company