Branch Office in India

Branch Office Registration in India – RBI & FEMA Requirements

A Branch Office in India is suitable for foreign companies that want to establish a business presence in India without incorporating a separate subsidiary company. A Branch Office can undertake specific business activities permitted by the Reserve Bank of India and is generally used by foreign companies for export/import, consultancy, technical support, research, and representation activities in India.

Choosing the right India entry structure is critical, as the regulatory framework, permitted activities, taxation, and compliance obligations differ significantly from those applicable to a Wholly Owned Subsidiary, Liaison Office, or Project Office.

At EzyBiz India Consulting LLP, we assist foreign companies with complete Branch Office registration in India, including eligibility review, RBI/AD Bank coordination, documentation, regulatory approvals, PAN, TAN, GST, bank account opening, and ongoing compliance support.

If you are still evaluating whether a Branch Office is the right option, compare all available India entry structures before making your investment decision.

Branch Office in India – At a Glance

✅ A Branch Office allows a foreign company to establish a business presence in India without incorporating a separate Indian company.

✅ Approval is generally granted by the Reserve Bank of India (RBI) through an Authorised Dealer (AD) Category-I Bank, subject to eligibility under FEMA regulations.

✅ A Branch Office can undertake only the activities specifically permitted by RBI, such as export/import, consultancy, research, technical support and representing the parent company in India.

✅ Manufacturing activities cannot be carried out directly. However, manufacturing may be undertaken through an Indian manufacturer under permitted outsourcing arrangements.

✅ The foreign company should generally have a profitable track record of at least five financial years and a minimum net worth of USD 100,000 (or its equivalent), subject to RBI guidelines.

✅ A Branch Office is treated as an extension of the foreign company and is not a separate legal entity.

✅ Income earned by the Branch Office in India is taxable in accordance with the provisions of the Income-tax Act, 1961 and applicable tax treaties.

✅ A Branch Office can generally repatriate its post-tax profits to the foreign parent company, subject to compliance with FEMA regulations and applicable tax laws.

✅ After approval, the Branch Office is required to obtain PAN, TAN, GST (where applicable), open a bank account, complete RBI compliances and undertake periodic ROC, FEMA and tax compliances.

Branch Office Registration Process in India

The process for establishing a Branch Office in India generally involves the following steps:

Step 1 – Eligibility Assessment

The foreign company’s eligibility is reviewed based on its financial track record, net worth, proposed activities in India and applicable sector-specific requirements.

Step 2 – Preparation of Documents

The required documents are prepared, including Form FNC, board resolution, constitutional documents, audited financial statements, banker’s report/certificate and other supporting documents prescribed under FEMA regulations.

Step 3 – Application through AD Category-I Bank

The application for establishing the Branch Office is submitted through the designated Authorised Dealer (AD) Category-I Bank. The AD Bank reviews the application and processes it in accordance with the applicable RBI/FEMA framework.

Step 4 – RBI / Regulatory Approval

Where RBI or other regulatory approval is required, the application is examined based on the nature of the proposed activities, eligibility of the foreign company and applicable FEMA regulations.

Step 5 – PAN, TAN and Bank Account

After approval, the Branch Office obtains PAN and TAN and opens its bank account in India for carrying out permitted operations.

Step 6 – GST and Other Registrations

Depending on the nature and location of operations, the Branch Office may also be required to obtain GST registration, Shops & Establishment registration, Professional Tax registration and other applicable licences or registrations.

Step 7 – Operational Setup

The Branch Office can thereafter establish its accounting, payroll, bookkeeping, employee compliance and tax systems for commencement of operations in India.

Step 8 – Ongoing Regulatory Compliance

After commencement of operations, the Branch Office is required to comply with applicable FEMA, RBI, Income-tax, GST, ROC and other annual and periodic regulatory requirements.

Our team provides continuous support for FEMA, RBI, Income-tax, GST, ROC and annual compliance requirements to ensure complete regulatory compliance.

Branch Office Registration Timeline in India

Indicative Overall Timeline: Approximately 45–60 working days, subject to the nature of the application, completeness of documents, processing by the AD Category-I Bank and applicable regulatory approvals.

Documents Required for Branch Office Registration in India

The documents required for establishing a Branch Office in India generally include the following:

Parent Company Documents

• Certificate of Incorporation
• Memorandum & Articles of Association / Charter Documents
• Audited Financial Statements for the prescribed period
• Board Resolution approving establishment of the Branch Office in India
• Banker’s Report / Certificate
• Business Profile of the Parent Company

Proposed Branch Office Documents

• Details of proposed business activities in India
• Address proof of the proposed office in India
• Details of the authorised representative in India
• Power of Attorney / Authorisation Letter
• Estimated investment and funding details

Director / Authorised Representative Documents

• Passport
• Address Proof
• Identity Proof
• Photograph

The exact documentation may vary depending on the country of incorporation of the foreign company, proposed activities, applicable regulatory route and requirements of the AD Category-I Bank or other regulatory authorities.

Why Set Up a Branch Office in India?

A Branch Office can be suitable for a foreign company that wants to establish a direct commercial presence in India without incorporating a separate Indian subsidiary.

Key advantages include:

• Operates as an extension of the foreign parent company.
• Enables permitted commercial activities in India.
• Supports export/import, consultancy, technical support and representation activities.
• Provides a direct presence for dealing with Indian customers, vendors and business partners.
• Helps strengthen brand visibility and market presence in India.
• Allows the foreign company to explore and expand its Indian operations while remaining directly connected with the overseas parent.

Permitted Activities of a Branch Office in India

A Branch Office in India may undertake only those activities permitted under the applicable RBI/FEMA framework and specifically approved for the Branch Office.

Permitted activities may include:

• Export and import of goods.
• Rendering professional or consultancy services.
• Carrying out research activities relating to the business of the parent company.
• Promoting technical or financial collaborations between Indian companies and the overseas parent or group companies.
• Representing the parent company in India and acting as its buying or selling agent.
• Providing technical support for products supplied by the parent or group companies.
• Providing services relating to information technology and software development, where permitted.
• Representing a foreign airline or shipping company, where applicable.

A Branch Office should operate strictly within the activities approved by the relevant regulatory authorities. Any proposed change in activities should be reviewed from an RBI/FEMA compliance perspective before implementation.

Activities Not Permitted

A Branch Office is generally not permitted to:

• Undertake manufacturing or processing activities directly in India.
• Carry on retail trading activities.
• Undertake activities outside the scope of its regulatory approval.
• Raise public deposits in India.
• Carry out activities prohibited or restricted under applicable FEMA regulations.

Business Presence Options in India

Foreign companies can enter India through different structures depending on the nature of activities, ownership requirements, regulatory approvals and long-term business objectives.

Frequently Asked Questions (FAQs) – Branch Office in India

1. What is a Branch Office in India?

A Branch Office is an extension of a foreign company established in India to undertake business activities permitted under the applicable RBI and FEMA framework. It is not a separate legal entity from the overseas parent company.

2. Can a foreign company open a Branch Office in India?

Yes. An eligible foreign company may establish a Branch Office in India subject to applicable FEMA regulations, RBI requirements and sector-specific conditions.

3. Is RBI approval required for establishing a Branch Office in India?

A Branch Office application is generally processed through an Authorised Dealer (AD) Category-I Bank under the applicable RBI/FEMA framework. Depending on the nature of the applicant, sector and proposed activities, additional regulatory approval may also be required.

4. What activities can a Branch Office undertake in India?

A Branch Office may undertake permitted activities such as export/import of goods, consultancy services, research related to the parent company’s business, technical support, representation of the parent company and other approved activities.

5. Can a Branch Office manufacture goods in India?

A Branch Office is generally not permitted to undertake manufacturing or processing activities directly in India. Manufacturing may, however, be undertaken through permitted outsourcing arrangements, subject to applicable regulations.

6. What is the minimum net worth required to establish a Branch Office in India?

The foreign parent company should generally have a minimum net worth of USD 100,000 or its equivalent, subject to the applicable RBI/FEMA requirements.

7. What profit track record is required for a Branch Office?

The foreign company should generally have a profitable track record during the immediately preceding five financial years, subject to applicable RBI/FEMA requirements.

8. How long does it take to establish a Branch Office in India?

The overall process generally takes approximately 45–60 working days. The actual timeline depends on the completeness of documentation, processing by the AD Category-I Bank and any regulatory approvals that may be required.

9. Is a Branch Office taxable in India?

Yes. Income attributable to the Indian Branch Office is taxable in India under the Income-tax Act, 1961, subject to the provisions of any applicable Double Taxation Avoidance Agreement.

10. Can a Branch Office remit profits to its foreign parent company?

Yes. Post-tax profits may generally be remitted to the foreign parent company subject to applicable tax, FEMA and banking requirements.

11. What compliances apply after establishing a Branch Office in India?

A Branch Office may be required to comply with FEMA/RBI requirements, Income-tax, GST, ROC filings, labour laws, accounting and audit requirements and other applicable statutory compliances.

12. What is the difference between a Branch Office and a Wholly Owned Subsidiary?

A Branch Office is an extension of the foreign parent company and does not have a separate legal identity. A Wholly Owned Subsidiary is a separate Indian company incorporated under the Companies Act, 2013 and is generally more suitable for long-term business operations in India.

Why Choose EzyBiz India Consulting LLP for Branch Office Registration in India?

Establishing a Branch Office in India involves coordination across RBI/FEMA regulations, AD Category-I Banks, tax registrations and ongoing statutory compliances. EzyBiz India Consulting LLP provides end-to-end support to foreign companies throughout the process.

Our Branch Office Support Includes

• Eligibility assessment under the applicable RBI/FEMA framework
• Review of proposed activities and India entry structure
• Preparation of Form FNC and supporting documentation
• Coordination with AD Category-I Bank and regulatory authorities
• Assistance with PAN, TAN, GST and other registrations
• Support for opening the Branch Office bank account
• Accounting, tax, FEMA and ROC compliance support after establishment
• Ongoing advisory for foreign companies operating in India

Why Foreign Companies Work With EzyBiz India

• 20+ years of professional experience
• Big-4 alumni experience
• Specialists in India Entry, FEMA and cross-border advisory
• Integrated team of Chartered Accountants, Company Secretaries and other professionals
• One-window support from entry strategy to ongoing compliance
• Dedicated relationship management and coordinated regulatory support

Country-Specific India Market Entry Guides

We have prepared dedicated India market entry pages to help overseas businesses understand the regulatory, tax and commercial considerations applicable to their jurisdiction. Explore our country-specific pages below:

• India Market Entry Services for Chinese Companies
• India Market Entry Services for Taiwanese Companies
• India Market Entry Services for US Companies
• India Market Entry Services for UK Companies
• India Market Entry Services for Australian Companies
• India Market Entry Services for German Companies
• India Market Entry Services for Japanese Companies
• India Market Entry Services for Singapore Companies
• India Market Entry Services for UAE Companies

Related India Entry Services

India Market Entry
Business setup in India
Foreign Company Registration in India
Wholly Owned Subsidiary
Joint Venture Registration
Liaison Office
Project Office

Prepared By:
EzyBiz India Consulting LLP – India Entry, FEMA & Cross-Border Advisory Team

Last Updated: August 2026

Disclaimer:
The information provided on this page is for general informational purposes only and should not be construed as legal, tax or regulatory advice. RBI, FEMA, tax and other regulatory requirements may vary depending on the nature of the applicant, proposed activities and applicable regulations. Professional advice should be obtained before establishing a Branch Office in India.