Entity · Branch Office
Branch Office Registration in India
A branch office lets an established foreign company carry out specified commercial activities in India — export/import, professional services, IT and R&D — without forming a subsidiary. It is approved by the RBI through your AD bank and taxed as a permanent establishment of the parent.
Who it’s for
Consider a branch office if you are an established foreign company that wants to carry out specific permitted commercial activities in India — export/import, professional or consultancy services, IT/software or R&D for the parent — without forming a separate Indian company, and you meet the 5-year profit track record and USD 100,000 net-worth test. It is not for retail trading, manufacturing outside an SEZ, or open-ended operations — for those use a wholly owned subsidiary.
What a branch office can and cannot do
The approval defines the branch’s permitted activities. A branch is an extension of the foreign parent, not a separately incorporated Indian company, so the parent remains exposed to its obligations.
Permitted activities
- Export and import of goods
- Professional and consultancy services
- Research related to the parent’s activities and IT/software services
- Technical support for products supplied by the parent or group
- Representing the parent as a buying or selling agent and promoting technical or financial collaboration
Prohibited activities
- Retail trading in India
- Manufacturing outside the permitted SEZ framework; manufacturing in an SEZ is subject to conditions
- Activities outside the scope of the office’s approval
Eligibility
- Profit-making track record for the 5 preceding years
- Net worth of USD 100,000 or more, supported by the required financial records
- A defined scope of permitted activities, parent documents and authorised signatory
- AD Category-I bank review; sensitive sectors and specified applicant circumstances may need prior RBI/government clearance
How to register a branch office in India
- 1
Apply in Form FNC to your AD Category-I bank
Confirm the permitted activities and eligibility, then submit Form FNC with the parent’s incorporation documents, financial statements, authorised signatory details and proposed India office information.
- 2
AD-bank review and RBI referral where required
The AD Category-I bank reviews the application under the delegated approval framework and forwards it to the RBI where prior approval is required. Sensitive sectors and specified applicant circumstances need additional scrutiny.
- 3
Obtain the Unique Identification Number (UIN)
The office is allotted a UIN through the applicable RBI/AD-bank process. Complete the required establishment notifications and retain the approval or general-permission records.
- 4
Set up registrations and the office bank account
Register PAN and TAN, complete the applicable foreign-company registration filings, and open the office bank account. Register for GST where applicable to the office’s activities.
- 5
File the annual Annual Activity Certificate (AAC)
Have the accounts audited and submit the AAC with audited accounts to the designated AD bank and relevant authorities as applicable. Confirm the filing recipients and deadlines for your office; ongoing tax and other statutory filings remain separate.
Documents required
- Certificate of incorporation / registration of the foreign parent — apostilled (Hague countries) or attested (e.g. UAE: MOFA + Indian mission)
- Charter documents (Memorandum & Articles or equivalent) — apostilled/attested
- Latest audited financial statements of the parent (last 5 years) and a net-worth certificate from the parent’s auditor/CPA
- Board resolution approving the India office and the authorised signatory — apostilled/attested
- Passport and address proof of the authorised signatory — apostilled/attested
- Details of proposed activities, business plan and the India office address
- Banker’s report from the parent’s bank (commonly requested by the AD bank)
Documents from non-Hague countries (e.g. UAE) are attested via MOFA + the Indian mission rather than apostilled.
How a branch office is taxed
The branch is treated as a permanent establishment (PE) of the foreign parent. India-attributable taxable profits carry the foreign-company rate of 35% plus surcharge and cess. Review treaty provisions, income attribution and the facts of the operations with your adviser.
| Tax point | What to plan |
|---|---|
| Corporate income tax | 35% plus surcharge and cess on India-attributable taxable profits |
| Related-party transactions | Arm’s-length pricing, documentation and Form 3CEB where applicable |
| Recurring filings | Annual audit, income-tax return, TDS and GST where applicable |
For outward payments, review Section 195 withholding and Forms 15CA/15CB; the AAC does not replace tax compliance.
Compliance & closure
- Maintain books, audited accounts and the annual AAC; confirm the relevant filing recipients
- Keep foreign-company filings, PAN/TAN, tax and applicable GST registrations up to date
- Close through the AD bank with a Chartered Accountant’s certificate, final AAC where applicable and settlement of obligations
- Cancel applicable registrations and remit the residual balance only after tax, audit and required banking/regulatory clearance
Indicative cost & timeline
| Item | Indicative guide |
|---|---|
| Setup (professional fees) | USD 2,500–5,000 |
| Annual compliance | USD 1,500–4,500 |
| Timeline | Typically around 4–8 weeks for RBI/AD-bank approval once your documents are complete and apostilled — indicative, and dependent on the activities, sector and any RBI referral. |
Indicative only — we confirm a fixed fee after scoping your parent company, activities and documents.
Compare your India entry options
- Liaison office registration in India — representative activities only
- Project office registration in India — a specific Indian contract
- Liaison, branch and project office comparison
- Wholly owned subsidiary in India — a separate Indian company
- Company registration in India for foreign businesses
Frequently asked questions
How do I register a branch office in India?
What activities can a branch office do in India?
What is the eligibility for a branch office in India?
How is a branch office taxed in India?
Branch office vs subsidiary — which is better?
How much does a branch office in India cost and how long does it take?
Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last reviewed: October 2026. General guidance, not tax or legal advice on your facts; confirm the applicable approval, filing and treaty requirements.
Registering a branch office in India?
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