Foreign Company Branch Office In India

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Opening of branch office in India

A foreign company cannot simply open a branch at India, there are certain procedures to follow which would give permissions for an Foreign Incorporation to get their branches started in India. The company can carry out activities that are permitted only by the RBI (Reserve Bank of India), the branch can pull in turn over to the company only via legal methods and the what the company has been committed in doing abroad. The manufacturing license is not permitted out of the box but it must be provided only on the request on sub-contract basis. This method of registration is a great way for Foreign companies who are concentrating on the Expanding into the Indian Subcontinent. The activities of the Branch office should be all under the legal terms of Indian Act. With branch office in certain areas would allow fine tuned target audience and more clearer location driven business activities. At Unilex Consultants we provide you a hassle free registration process which would be dealt by our professionals within a time frame of 15-20 days and is subjective to governmental processing time. Our team takes care of the documentation and aids in provide you the realistic estimation of cost.

Documentation for Registration of Branch office in India | Unilex

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Form FNC 1 (Three copies)

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Letter of authority from the parent company.

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Financial statements of parent Company

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KYC of Authorized persons

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Certificate of Incorporation

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MOA/AOA of Parent Company

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Bankers Certificate

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Bank Account Opening Resolution

Process involved in registering a Foreign Company Branch Office In India

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1

RBI approval Clearance

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2

Submitting the Track Record

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3

Filing Form FNC

Requirements for Registration of Branch office in India | Unilex

    - The branch office should contain the same name as that of the parent company.
    - The profitable records must be produced to start an Indian Branch.
    - The Net Worth certified by a Certified Accountant shall be not less then or equal to USD 100,000.
    - It would acting as an extension and no new business activities cannot be done unless sub-contact is made.

Indian laws for Foreign Company Branch Office in India ?

  • - A License must be obtained from the RBI..
  • - The manufacturing part must have a sub-contact put forwarded.
  • - The Branch must abide the corporate laws according to the Companies Act 2013.
  • - The revenue must be dealt by the head office incase the Indian venture failed to induce profit into the company.
  • - The company must provide its track record as a proof in order to open a branch in India.
  • - It is registered as entity of the Main Company and is not treated as a separate company.

Unique Features of Registration of Branch office in India | Unilex

    - A License must be obtained from the RBI.
    - The manufacturing part must have a sub-contact put forwarded.
    - The Branch must abide the corporate laws according to the Companies Act 2013.
    - The revenue must be dealt by the head office incase the Indian venture failed to induce profit into the company.
    - The company must provide its track record as a proof in order to open a branch in India.
    - It is registered as entity of the Main Company and is not treated as a separate company.

FAQs About Registration of Branch office in India | Unilex

Is the previous track record necessary for Branch office opening in India?
Any company from abroad willing to expand into India by setting up a branch office is required mandatorily to submit the profit based previous track record for the verification by RBI.
Can the company have different name in branch office?
No the company cannot be represented with a different name and it must be only represented with the same name as the actual incorporation that exists abroad.
Can the Branch office indulge in manufacturing activities in?
Out the box from registration that is not possible, but can be done via establishing a sub contract which will give the rights for the company to do manufacturing of the products inside India.
What is the validity period for Branch Office in India?
The licensing is provided on 3 years basis usually and post that period the branch office should be renewed in order to stay legal.

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