Branch Office

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Description

A. Eligibility

A foreign Company having net worth of USD 100000 or its equivalent and track record of making profit during immediately preceding five financial years can open branch office.
In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit.
Name of the Branch Office must be same as of the Parent Company

B. Permitted Activities 

1. Permitted to undertake commercial activities
2. To represent the parent company
3. To carry out export/import of goods,
4. Rendering professional services,
5. Carry out research work, etc. in India. 
6. Profit repatriation allowed after payment of applicable taxes

C. Restricted Activities

1. Can’t do manufacturing activity other than in SEZ zone with purpose of exporting out of India

D. Tax:  40% + Surcharge

E. Exit: Prior approval of AD bank and ROC authorities is required.

List of Standard Documents required :

  1. Form FNC 1 (Three copies)
  2. Letter from the principal officer of the Parent company to RBI.
  3. Letter of authority from the parent company in favor of Local Representative.
  4. Letter of authority/ Resolution from parent company for setting up BRANCH office in India.
  5. Comfort letter from the parent company intending to support the operation in India.
  6. Two copies of the English version of the Certificate of Incorporation, Memorandum & Articles of association (Charter Document) of the parent company duly attested by the Indian embassy or notary public in the country of registration.
  7. Certification of Incorporation – Translated & Duly Notarized and properly authenticated.
  8. The Latest audited Balance sheet and annual accounts of parent company duly Translated notarized for past Three years and properly authenticated
  9. Name, Address, email ID and telephone number of the authorized person in Home Country.
  10. Details of Bankers of the Organization the Country of Origin along with the bank account number
  11. Commitment from the Organization to the effect that it will be open to report / opinion sought from its banker by the Government of India / Reserve Bank of India
  12. Expected funding level for operations in India.
  13. Details Relating to address of the proposed local office, number of persons likely to be employed, number of Foreigners among such employees and address of the head of the Local office, if decided
  14. Details of Activity carried out in Home Country by the applicant organization in brief about the product and services of company in Brief.
  15. Bankers Certificate
  16. Latest Proof of identity of all the Directors – Properly Certified by Banker in Home Country and duly authenticated
  17. Latest Proof of address all of Directors – Properly Certified by Banker in Home Country and duly authenticated
  18. Details of the Individuals / Company holding more 10% of Equity
  19. Structure of the Organization and its Shareholding pattern
  20. Complete KYC of Shareholders holding more than 10% Equity in the Applicant Company
  21. Resolution for Opening up Bank Account with the Banker
  22. Duly Signed Bank Account Opening Form for Indian Bank

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