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What is a Branch Office in India?
A Branch Office is an extension of a foreign company that carries out permitted business activities such as consultancy, research, or trading in India.
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Who can open a Branch Office in India?
Any foreign company with a profitable track record for the last five years and a minimum net worth of USD 100,000 can open a Branch Office in India.
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Is RBI approval required for a Branch Office?
Yes, prior approval from the Reserve Bank of India (RBI) is mandatory before proceeding with registration under the Ministry of Corporate Affairs (MCA).
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What business activities are permitted for a Branch Office?
It can engage in consultancy, import/export, research, and coordination work but cannot conduct retail trading or manufacturing in India.
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How long does it take to register a Branch Office in India?
The complete process usually takes 25–40 working days, depending on RBI and MCA approval timelines.
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What is the validity of RBI approval for a Branch Office?
RBI approval is generally valid for three years, after which renewal must be applied for before expiry.
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Can a Branch Office generate revenue in India?
Yes, it can earn income from permitted business activities and must pay applicable taxes on such India-sourced earnings.
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Is a Branch Office considered a separate legal entity?
No, it is not. It is treated as the same legal entity as its foreign parent company and functions as its extension in India.
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Can a Branch Office open multiple locations in India?
Yes, after obtaining additional approvals, a foreign company may establish multiple branches in different Indian cities.
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What taxes apply to a Branch Office in India?
Branch offices are taxed as foreign companies in India at applicable corporate tax rates, including surcharge and cess.
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Can a Branch Office repatriate profits abroad?
Yes, profits can be repatriated to the parent company after payment of Indian taxes and submission of supporting audit reports.
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What documents are required to open a Branch Office?
You need incorporation certificates, charter documents, audited financials, board resolutions, and power of attorney for the authorized representative.
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Is it necessary to appoint a local representative in India?
Yes, a local authorized person is required to manage filings, receive communications, and coordinate with regulatory authorities.
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Can a Branch Office hire employees in India?
Yes, it can hire local employees and professionals to manage daily operations, subject to Indian labor laws and taxation.
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What are the annual compliance requirements?
A Branch Office must file annual activity reports, audited accounts, and income-tax returns with RBI and MCA every year.
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Can the name of the Branch Office differ from the parent company?
No, the Indian Branch Office must operate under the same name as the foreign parent company.
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What is the difference between a Branch Office and a Liaison Office?
A Branch Office can conduct profit-making activities, whereas a Liaison Office can only carry out communication and coordination work.
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Can a Branch Office be converted into a subsidiary company?
Yes, the parent company may later incorporate a Private Limited Company in India and transfer operations from the Branch Office.
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Is GST registration required for a Branch Office?
Yes, if the branch is involved in taxable supply of goods or services, GST registration is mandatory under Indian law.
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How does Ebizfiling help in Branch Office registration?
Ebizfiling assists in documentation, RBI and MCA approvals, bank account opening, compliance management, and end-to-end guidance for smooth setup.