{"id":8045,"date":"2020-08-15T00:59:28","date_gmt":"2020-08-14T19:29:28","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=8045"},"modified":"2022-01-04T15:07:59","modified_gmt":"2022-01-04T09:37:59","slug":"complete-understanding-of-setting-up-a-branch-office-in-india","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/","title":{"rendered":"All About on setting up a Branch Office in India"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e6c56c3f023\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e6c56c3f023\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Set_up_branch_office_representative_office_outside_India\" title=\"Set up branch office \/representative office outside India\">Set up branch office \/representative office outside India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Reserve_Bank_of_India\" title=\"Reserve Bank of India\">Reserve Bank of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Acquisition_of_assets_outside_India\" title=\"Acquisition of assets outside India\">Acquisition of assets outside India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Application_to_the_ad_banker\" title=\"Application to the ad banker\">Application to the ad banker<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Some_of_the_main_points_to_be_provided_within_the_application\" title=\"Some of\u00a0the main points\u00a0to be provided\u00a0within the\u00a0application:\">Some of\u00a0the main points\u00a0to be provided\u00a0within the\u00a0application:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Off-site_and_on-site_contracts\" title=\"Off-site and on-site contracts\">Off-site and on-site contracts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Complete_understanding_of_setting_up_a_Branch_Office_in_India\" title=\"Complete understanding of setting up a Branch Office in India\u00a0\">Complete understanding of setting up a Branch Office in India\u00a0<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Complete_understanding_of_Global_Companies_Preferences_and_Needs_for_open_up_operation_setting_up_a_Division_or_branch_in_India_a_foreign_company_for_setting_up_an_office_in_India\" title=\"Complete understanding of Global Companies Preferences and Needs for open up operation setting up a Division or branch in India. a foreign company for setting up an office in India\">Complete understanding of Global Companies Preferences and Needs for open up operation setting up a Division or branch in India. a foreign company for setting up an office in India<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#The_Reasons_for_set_up_Branch_Office_in_India\" title=\"The Reasons for set up Branch Office in India\">The Reasons for set up Branch Office in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Specifications_and_conditions_of_an_establishing_Branch_office_in_India\" title=\"Specifications and conditions of an establishing\u00a0 Branch office in India\">Specifications and conditions of an establishing\u00a0 Branch office in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Necessary_document_required_to_establish_a_branch_office_in_India\" title=\"Necessary document required to establish a branch office in India\">Necessary document required to establish a branch office in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Other_criteria_for_Incorporation_of_Branch_Office\" title=\"Other criteria for Incorporation of Branch Office \">Other criteria for Incorporation of Branch Office <\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Procedural_criteria_for_post-incorporation\" title=\"Procedural criteria for post-incorporation\">Procedural criteria for post-incorporation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Annual_Compliance_practices_a_Branch_Office_needs\" title=\"Annual Compliance practices a Branch Office needs\">Annual Compliance practices a Branch Office needs<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/complete-understanding-of-setting-up-a-branch-office-in-india\/#Every_branch_office_is_required_each_year_to_do_the_following_activities\" title=\"Every branch office is required each year to do the following activities:\">Every branch office is required each year to do the following activities:<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-17877\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/p-300x150.jpg\" alt=\"Branch office in india\" width=\"814\" height=\"407\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/p-300x150.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/p.jpg 318w\" sizes=\"(max-width: 814px) 100vw, 814px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Set_up_branch_office_representative_office_outside_India\"><\/span><strong><span style=\"color: navy;\">Set up branch office \/representative office outside India<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Indian dynamism, entrepreneurship, and enthusiasm is seeking new horizons across the world. Of course, anyone entering a far-off land must be sure of the laws, rules, and regulations of the host country.<\/p>\n<p>Each country is different and keeping up with the laws of various countries can indeed be a challenge.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reserve_Bank_of_India\"><\/span><a href=\"https:\/\/carajput.com\/blog\/tag\/rbi\/\">Reserve Bank of India<\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In India, the <a href=\"https:\/\/carajput.com\/blog\/tag\/rbi\/\">Reserve Bank of India<\/a> is responsible for controlling and regulating investment in foreign entities by persons who are residents of India. someone could also be a citizen of India and a resident outside India.<\/p>\n<p>A citizen who isn&#8217;t a resident of India won&#8217;t be governed by banking concerns of India regulations. An Indian resident is absolved to invest in foreign assets out of the income received when he\/she was resident outside India.<\/p>\n<p>So, if someone resident in India desires to enter into the overseas market, he can enter either by establishing a branch office or liaison office outside India or he can form an independent Company outside India.<\/p>\n<p>The corporate formed outside India could also be within the variety of wholly-owned subsidiaries or venture companies.<\/p>\n<p>It is important to notice that under section 2 of the\u00a0<a href=\"https:\/\/www.caindelhiindia.com\/blog\/basic-about-non-resident-indians-under-fema-and-income-tax-2\/\">FEMA <\/a>Act, the intention\u00a0to remain\u00a0outside or inside India for an uncertain period\u00a0is vital.\u00a0this is often\u00a0different from the provisions under section 6 of\u00a0tax\u00a0Act.<\/p>\n<p>To be a resident under the revenue enhancement Act, a person needs to only stay in India for a specified number of days. So, a private is also a non-resident under the revenue enhancement Act during a year and should be resident as per the FEMA Act, during the identical year.<\/p>\n<p>A person resident in India being a Firm or Company or Body Corporate registered in India is eligible to determine a branch outside India. General permission is out there for the opening of a checking account for the aim of meeting the Branch Expenses abroad subject to the following limits\/conditions:<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/14.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-13204\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/14.png\" alt=\"\" width=\"937\" height=\"675\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/14.png 608w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/14-300x216.png 300w\" sizes=\"(max-width: 937px) 100vw, 937px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Acquisition_of_assets_outside_India\"><\/span><strong>Acquisition of assets outside India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Branch\/office\/representative can acquire office equipment and other assets required for running their normal business operations. Funds required for this could be remitted by the Indian entity from India as an accounting transaction.<\/p>\n<p>However, transfer or acquisition of immovable property outside India,\u00a0apart from\u00a0by way of lease not exceeding five years, by the overseas branch\/ office\/ representative\u00a0are going to be\u00a0subject to RBI regulations.<\/p>\n<p>Notably, the above facility cannot be utilized by e-commerce companies who are, for instance, within the business of providing an e-commerce platform to foreign sellers and buyers and want to determine a group account during a foreign country without establishing a branch office or representative in this country.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_to_the_ad_banker\"><\/span><strong>Application to the ad banker<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Indian firm\/companies should submit applications to their bankers (authorized dealers) in form OBR together with the particulars of their turnover duly certified by their auditors and also a declaration to the effect that they need not approach\/would not approach the other authorized dealer for the power being applied for.<\/p>\n<p>The appliance form OBR must be filled in with necessary details together with supporting documents. After which the exchange is released by the authorized dealer (bank).<\/p>\n<p>A recurring (expenditure) remittance facilities are allowed initially for a period of two years only, after obtaining confirmation from the applicant that they need to complete all legal and other formalities in India and abroad in reference to the opening of trading\/non-trading office or for posting a representative abroad.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Some_of_the_main_points_to_be_provided_within_the_application\"><\/span><strong>Some of\u00a0the main points\u00a0to be provided\u00a0within the\u00a0application:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Exporter\u2019s Code Number allotted by\u00a0Federal Reserve Bank.<\/li>\n<li>Nature of the applicant\u2019s business in India.<\/li>\n<li>Particulars of foreign currency balances\/securities, if any, held by the applicant.<\/li>\n<li>Present arrangements for applicant\u2019s representation within the country\/territory concerned if any. If there&#8217;s any agency arrangement, its full details include the quantity and date of Reserve Bank\u2019s approval and commission paid during the past three years.<\/li>\n<li>Details in respect of realization of amount from export during the past two years.<\/li>\n<li>Commodity-wise\/country-wise\u00a0hack\u00a0of exports realized\u00a0within the\u00a0last two years.<\/li>\n<li>Application is for appointing an agent (on fixed remuneration basis), or for opening a trading branch, or for a representative liaison office\/non-trading branch.<\/li>\n<li>Place and country of posting of agent\/representative office\/branch.<\/li>\n<li>Territories\/countries to be covered by the proposed agent\/representative office\/branch.<\/li>\n<li>Details of business which will be conducted abroad, through an agent\/representative office\/branch.<\/li>\n<li>Initial Establishment Expenses.<\/li>\n<li>Recurring expenses per month.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Off-site_and_on-site_contracts\"><\/span><strong>Off-site and on-site contracts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The overseas office\/branch of software exporter company\/firm may repatriate to India 100 percent of the contract value of every \u2018off-site\u2019 contract.<\/p>\n<p>In the case of companies usurping \u2018on site\u2019 contracts, they ought to repatriate the profits of such \u2018on site\u2019 contracts after the completion of the said contracts.<\/p>\n<p>An audited yearly statement showing receipts under \u2018off-site\u2019 and \u2018on-site\u2019 contracts undertaken by the overseas office, expenses, and repatriation thereon could also be sent to the AD Category \u2013 I banks.<\/p>\n<p>Wholly Owned Subsidiaries make it possible for the parent company to manage and diversify. Generally, it is seen that the Wholly Owned Subsidiaries retains legal control over operations, products, and processes.\u00a0a number of\u00a0the\u00a0samples of\u00a0WOS include Reliance Industrial Investments and Holdings Limited owned by Reliance Group of Companies, Concorde Motors India Ltd, owned by TATA Motors.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Complete_understanding_of_setting_up_a_Branch_Office_in_India\"><\/span><span style=\"color: #000080;\"><strong>Complete understanding of setting up <\/strong><strong>a Branch Office in India\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h4><span class=\"ez-toc-section\" id=\"Complete_understanding_of_Global_Companies_Preferences_and_Needs_for_open_up_operation_setting_up_a_Division_or_branch_in_India_a_foreign_company_for_setting_up_an_office_in_India\"><\/span><span style=\"color: #000080;\">Complete understanding of Global Companies Preferences and Needs for open up operation setting up a Division or branch in India. a foreign company for setting up an office in India<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Branch office in India<\/li>\n<li>The liaison office in India or<\/li>\n<li>Setting up a Private limited company in India or<\/li>\n<li>Project office by a foreign company.<\/li>\n<\/ul>\n<figure id=\"attachment_8298\" aria-describedby=\"caption-attachment-8298\" style=\"width: 892px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8298\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/2.jpg\" alt=\"www.carajput.com;Foreign Company\" width=\"892\" height=\"512\" \/><\/a><figcaption id=\"caption-attachment-8298\" class=\"wp-caption-text\">www.carajput.com; Foreign Company<\/figcaption><\/figure>\n<p>There are few requirements for a foreign corporation to open its branch in India. A subsidiary should be established for different reasons and the establishment of a head office in India&#8217;s requirements and needs.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Reasons_for_set_up_Branch_Office_in_India\"><\/span><span style=\"color: #000080;\"><strong>The Reasons for set up Branch Office in India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>For the following reasons, international firms, including US corporations, are allowed to set up branch offices in India:<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/services-import-export.php\">Import and Export<\/a> of supply of goods<\/li>\n<li>Provision for Professional or advisory facilities<\/li>\n<li>Start the research work which includes what the parent company is already doing.<\/li>\n<li>for enlarge the Promoting technical or financial collaborations between Indian businesses and a foreign parent or group of companies worldwide.<\/li>\n<li>To provide the services to the parent company in India and to act as purchasing\/selling representatives in India.<\/li>\n<li>for initiate information technology services, and software development in India.<\/li>\n<li>for the starting technological assistance to parent\/group business provided goods.<\/li>\n<li>open up Shipping \/ Foreign Airline operation<\/li>\n<li>Global Banks opening<\/li>\n<\/ul>\n<p>A Branch office is not allowed to conduct production operations of its own but is authorized to subcontract them to an Indian company. Branch offices founded with RBI approval may remit branch income outside India, net of relevant Indian taxes, and subject to RBI guidelines subjected to the condition of RBI grants permission to set up branch offices.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Specifications_and_conditions_of_an_establishing_Branch_office_in_India\"><\/span><strong><span style=\"color: #000080;\">Specifications and conditions of an establishing\u00a0 Branch office in India<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_8297\" aria-describedby=\"caption-attachment-8297\" style=\"width: 879px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/1.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8297\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/1.png\" alt=\"www.carajput.com;procedure to establish a foreign entity\" width=\"879\" height=\"337\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/1.png 363w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/09\/1-300x115.png 300w\" sizes=\"(max-width: 879px) 100vw, 879px\" \/><\/a><figcaption id=\"caption-attachment-8297\" class=\"wp-caption-text\">www.carajput.com; procedure to establish a foreign entity<\/figcaption><\/figure>\n<ul>\n<li>The Indian branch office name will be the same as the parent business name.<\/li>\n<li>The Branch Office has no control, it is just an extension of an Existing company&#8217;s foreign world market.<\/li>\n<li>All branch office costs are borne by the Principal \/head office because it has Indian activities revenue does not have revenue.<\/li>\n<li>Over the immediately intervening five years in the homeworld, the international parent corporation planning to open a branch office in India would have a successful track record.<\/li>\n<li>The company must have The Net Worth, i.e., amount of paid-up capital and free deposits, less intangible assets as specified in the latest Audited Balance Sheet or Financial Report accredited by a Certified Public Accountant or other Registered Financial Practitioner of that name shall not be less than or equivalent to USD 100,000.<\/li>\n<\/ul>\n<p>A branch office is ideal for international firms looking to set up a temporary office in India and not involved or intending to make long-term plans for Indian operations; except for the above-listed finance, shipping and airlines, etc.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Necessary_document_required_to_establish_a_branch_office_in_India\"><\/span><span style=\"color: #000080;\"><strong>Necessary document required to establish a branch office in India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/3.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8050\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/3.png\" alt=\"www.carajput.com; Branch Office\" width=\"898\" height=\"472\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/3.png 310w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/3-300x158.png 300w\" sizes=\"(max-width: 898px) 100vw, 898px\" \/><\/a><\/p>\n<p>Presently, the application for the branch office and BRANCH office is sent through the AD according to the <a href=\"https:\/\/carajput.com\/rbi-consulting.php\">Reserve Bank of India&#8217;s<\/a> conditions. The approved dealer implies obtaining banking licenses for a different entity.<\/p>\n<p>To start a branch office in India the following filings are required:<\/p>\n<ul>\n<li>Certification of Incorporation &#8211; Translated &amp; duly notarized and properly authenticated.<\/li>\n<li>The Latest audited Balance sheet and annual accounts of the parent company duly Translated notarized for the past 3 years and properly authenticated.<\/li>\n<li>The expected funding level for operations in India.<\/li>\n<li>Details Relating to address of the proposed local office, the number of persons likely to be employed, the number of Foreigners among such employees, and address of the head of the local office, if decided<\/li>\n<li>Details of Activity carried out in Home Country by the applicant organization in brief about the product and services of the company in Brief.<\/li>\n<li>Bankers Certificate<\/li>\n<li>Name, Address, email ID, and telephone number of the authorized person in Home<\/li>\n<li>Letter from the principal officer of the Parent company to RBI.<\/li>\n<li>Letter of authority from the parent company in favor of a Local Representative.<\/li>\n<li>A Letter of authority\/ Resolution from the parent company for setting up BRANCH office in<\/li>\n<li>Comfort letter from the parent company intending to support the operation in India.<\/li>\n<li>Two copies of the English version of the Certificate of Incorporation, Memorandum &amp; Articles of association (Charter Document) of the parent company duly attested by the Indian embassy or notary public in the country of registration.<\/li>\n<li>Details of Bankers of the Organization the Country of Origin along with the bank account number<\/li>\n<li>Commitment from the Organization to the effect that it will be open to report \/ opinion sought from its banker by the Government of India \/ Reserve Bank of India<\/li>\n<li>Form FNC 1 (Three copies)<\/li>\n<li>Latest Proof of identity of all the Directors &#8211; Properly Certified by Banker in Home Country and duly authenticated<\/li>\n<li>Latest Proof of address all of the Directors &#8211; Properly Certified by Banker in Home Country and duly authenticated<\/li>\n<li>Details of the Individuals \/ Company holding more than 10% of Equity<\/li>\n<li>Structure of the Organization and its Shareholding pattern<\/li>\n<li>Complete KYC of Shareholders holding more than 10% Equity in the Applicant Company Resolution for Opening up Bank Account with the Banker<\/li>\n<li>Duly Signed Bank Account Opening Form for Indian Bank<\/li>\n<li>Note: We can assist in getting all these documents, wherever required prepared and advice on the various issue relating to this. Please feel free for clarification, if any is required in this regard.<\/li>\n<\/ul>\n<p>The RBI accepts the application for BRANCH office licenses but the Approved Dealers (AD) route the applications for the BRANCH office as per the recent changes. Despite that, the timeframe for creating the BRANCH office has significantly expanded. Even the paperwork needed for the same has significantly increased.<\/p>\n<p><a href=\"https:\/\/carajput.com\/blog\/a-forign-company-open-a-branch-office-in-india\/\">Know about- Foreign Company Open a Branch Office in India<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Other_criteria_for_Incorporation_of_Branch_Office\"><\/span><strong><span style=\"color: #000080;\">Other criteria for Incorporation of Branch Office<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>That RBI-licensed branch office shall be licensed with the Ministry of Corporate Affairs, it is a branch office registration as a foreign business establishment in India. On such registration, the business registrar allocates a CIN i.e. Corporate Identification Code. The following forms must be filled out with the Companies Registrar:<\/p>\n<ul>\n<li>Form\u00a044<\/li>\n<li>Charter, laws or document and articles of agreement or other act constituting or establishing the creation of a company(In the manner provided for in Rule 16, General Rules and Functions of the Companies (Central Government), 1956)<\/li>\n<li>Unless the records alluded to above are not in English instead of the original edition of the papers.<\/li>\n<li>Information Director(s)-Persons<\/li>\n<li>Information Director(s)-Public bodies<\/li>\n<li><a href=\"https:\/\/carajput.com\/rbi-consulting.php\">Reserve Bank of India<\/a> letter of approval<\/li>\n<li>Information Secretary(s)<\/li>\n<li>Resolution of control of attorney or board in lieu of designated representative(s)<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Procedural_criteria_for_post-incorporation\"><\/span><span style=\"color: #000080;\"><strong>Procedural criteria for post-incorporation<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>The below few more criteria for a branch office are also required after Incorporation:<\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/services\/permanent-account-number-pan.php\">PAN<\/a> of company.<\/li>\n<li>TAN (Tax-deductible Number) -Shop and Establishment certificate details<\/li>\n<li>certificate of <a href=\"https:\/\/carajput.com\/gst\/gst-registration.php\">GST Registering<\/a> if\u00a0 Branch provides services in India or provide \u00a0facilities in India<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Annual_Compliance_practices_a_Branch_Office_needs\"><\/span><span style=\"color: #000080;\"><strong>Annual Compliance practices a Branch Office needs<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_8052\" aria-describedby=\"caption-attachment-8052\" style=\"width: 937px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/download-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-8052\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/08\/download-2.jpg\" alt=\"www.carajput.com; Branch Office\" width=\"937\" height=\"525\" \/><\/a><figcaption id=\"caption-attachment-8052\" class=\"wp-caption-text\">www.carajput.com; Branch Office<\/figcaption><\/figure>\n<h4><span class=\"ez-toc-section\" id=\"Every_branch_office_is_required_each_year_to_do_the_following_activities\"><\/span>Every branch office is required each year to do the following activities:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>To be maintaining complete record Files<\/li>\n<li>To audited Financial Report<\/li>\n<li>To be Filling with RBI Annual Operation Certificate<\/li>\n<li>To be Completion of the regular report and balance sheet for the business registrar<\/li>\n<li>to timely inform about some shift in the world Business constitution of RBI &amp; ROC<\/li>\n<li>to timely information about any change of Foreign Company Directors to RBI &amp; ROC<\/li>\n<li>to timely information about all changes or shifts to RBI &amp; ROC at the BRANCH office<\/li>\n<li>No additional place of business may be established until RBI intimation and approval.<\/li>\n<\/ul>\n<p>Regarding company management standards in India see also Annual Corporate Filings in India.<\/p>\n<h2><\/h2>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Set up branch office \/representative office outside India Indian dynamism, entrepreneurship, and enthusiasm is seeking new horizons across the world. Of course, anyone entering a far-off land must be sure of the laws, rules, and regulations of the host country. Each country is different and keeping up with the laws of various countries can indeed &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[9136,9137,9138,9135],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8045"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=8045"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8045\/revisions"}],"predecessor-version":[{"id":20742,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/8045\/revisions\/20742"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=8045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=8045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=8045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}