Foreign Branch Office Registration
Foreign Branch is a special purpose organisation setup with the prior permission of Reserve Bank of India to operate as a Branch of a Foreign Organisation in India. It can operate only in terms of the permission granted by the Reserve Bank of India and can not operate as a Manufacturing Unit of the Foreign Parent. A Foreign Branch is liable to comply with all the relevant laws applicable to Domestic organisations such as Value Added Tax (VAT), Service Tax, Income Tax, Labour Laws, Customs etc. It is also required to file annual return with the Registrar of Companies (ROC) as well as Reserve bank of India (RBI).
A branch office, has to file income tax returns and is liable for Indian taxation and can undertake sale / purchase of goods and provision of services on its own account and receive and give payments for the same. So, there is more freedom of work to branch office but is also liable for compliances as per India laws.
Foreign Branch Office Vs Liaison Office
The main difference between foreign branch office and liaison office is as follows:
- Foreign Branch office is required to pay Income Tax in India and comply with Income Tax Laws whereas Liaison Office are not required to pay Income Tax in India
- Foreign Branch office is allowed to do trading / commercial activities as permitted by RBI whereas Liaison Office cannot undertake any Trading / Commercial activity directly in India.
- Branch offices are also subject to Transfer Pricing (International Taxation) Regulation of Indian Income Tax
Foreign Branch Office Registration Procedure
For Foreign Branch Office Registration in India, approval from Reserve Bank of India is required. After approval from RBI is received, further the company is required to be registered with Registrar of Companies (ROC) which completes the Foreign Branch Office Registration process.
Requirements for Foreign Branch Office Registration in India
The following are the documents required for Foreign Branch Office Setup in India.
- 2 Copies of Certificate of Incorporation / Registration (notarised and attested by Indian Embassy) (One copy each for RBI & ROC). If it is in language other than english then Translation of the same notarised and attested by Indian Embassy is required.
- 2 Copies of Memorandum & Articles of Association (English Translation) notarised and attested by Indian Embassy
- Details of Last Three Years Import Into / Export From India (On letter head, signed with stamp, five copies)
- Latest 3 years Audited Balance Sheet (English translation) notarised / attested by Indian Embassy
- Existing arrangements, if any in India eg direct / indirect agent
- Details of existing Indian Clients, if any
- Details of activities to be undertaken in India
- Details of products / services to be rendered in India by parent company. Also, provide some literature like brochures / catalogues of products and literature on the company, if any. Indian regulators (RBI) love these literature and it helps in getting process completed speedily
- Some other Forms, documents may be required with signature which we would provide to you.
- Activities to be undertaken in India in case of Branch office.
AVA provides comprehensive Foreign Branch Office Registration services as well as help setup business in India along with registration of various other laws applicable to Foreign Branch Offices. For more details on our services feel free to Contact Us