Branch Office

Foreign entities engaged in manufacturing or trading activities outside India are allowed to set-up a “Branch Office” in India. A branch office is permitted to carry on the following activities, which are wider in scope as compared to the activities permitted to a liaison office:

  • Export and Import of goods;
  • Rendering professional or consultancy services;
  • Carrying out research assignments, in areas in which the parent company is engaged;
  • Promoting technical or financial collaborations between Indian companies and their parent or overseas group company;
  • Representing the parent company in India and acting as buying / selling agent inIndia;
  • Rendering services in Information Technology and development of software in India; or
  • Rendering technical support to the products supplied by parent / group companies.
  • Foreign airline / shipping company.

Normally, the branch office should be engaged in the activities in which the parent company is engaged. A branch office is not permitted to engage in any manufacturing or processing activities in India directly or indirectly. Retail trading activities of any nature are also not allowed for a branch office in India. The profits of a branch office are permitted to be remitted outside India subject to the payment of applicable Indian taxes.

Key Process and Documents

Same as liaison office