The Classic Partners LLP
Foreign Branch Office Setup in India
Branch office setup in India for foreign companies under FEMA and RBI regulations. We obtain RBI / AD bank approval, register the branch with the ROC, and handle PAN, GST and tax compliance so your overseas company can carry on its permitted business activities in India.
Talk to a Branch Office Setup ExpertWhat is a Foreign Branch Office?
A branch office is an establishment set up in India by a foreign company to carry on the same or allied business as the parent, subject to approval from the Reserve Bank of India through an authorised dealer bank under FEMA. The branch is treated as an extension of the foreign parent, not a separate Indian company.
A branch office can undertake activities such as export and import of goods, professional or consultancy services and representing the parent, but generally cannot carry on retail trading or manufacturing in India except in a special economic zone. If you want a full Indian presence, an Indian subsidiary is usually preferable; for non-commercial representation, a liaison office may be enough.
Who Should Set Up a Branch Office?
- Foreign companies wanting to do business in India without a subsidiary.
- Overseas firms providing professional, consultancy or technical services.
- Companies engaged in export and import or representing the parent’s products.
- Established foreign businesses meeting the RBI profitability and net-worth norms.
- Groups comparing a branch with an Indian subsidiary or liaison office.
Our Branch Office Services
RBI / AD Bank Approval
Application and approval for the branch under FEMA regulations.
ROC Registration
Registration of the foreign company's branch with the ROC.
PAN, TAN & Bank
PAN, TAN and bank account setup for the branch in India.
FEMA & RBI Compliance
Ongoing FEMA reporting and Annual Activity Certificate filing.
Accounting & Tax
Book-keeping, income-tax returns and audit for the branch.
Closure & Remittance
Support for repatriation of profits and branch closure.
Why Choose The Classic Partners
- FEMA and RBI expertise for smooth branch approvals.
- Single-window setup from approval to tax and ROC compliance.
- Remote onboarding for overseas parent companies.
- Clear advice on branch vs subsidiary vs liaison office.
Related Services
Frequently Asked Questions
What is a branch office in India?
A branch office is an establishment set up by a foreign company to carry on its business in India under FEMA, with approval from the Reserve Bank of India through an authorised dealer bank. It is an extension of the parent company.
What activities can a branch office carry out?
A branch office can undertake activities such as export and import of goods, professional and consultancy services, and representing the parent company, but it generally cannot carry on retail trading or manufacturing in India outside a special economic zone.
Does a branch office need RBI approval?
Yes. Setting up a branch office requires approval, which is processed through an authorised dealer bank and, in certain cases, the Reserve Bank of India, depending on the activity and sector.
What is the difference between a branch office and an Indian subsidiary?
A branch office is an extension of the foreign parent with limited permitted activities, while an Indian subsidiary is a separate Indian company that can carry on a much wider range of business and is more flexible.
Is a branch office taxed in India?
Yes. Income earned by a branch office in India is taxable in India, generally at the rates applicable to foreign companies, and the branch must file income-tax returns and complete an audit.
What ongoing compliance does a branch office have?
A branch office must maintain books of account, get them audited, file an Annual Activity Certificate, comply with FEMA reporting, and file income-tax returns each year.
Ready to set up your Branch Office in India?
Establish a compliant Indian branch with end-to-end FEMA and RBI support.
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