Branch Office In India

Branch office in India

A foreign company can smoothly operate in India by opening a Branch Office. The parent company must obtain approval from the Reserve Bank of India, and get the registration done with ROC prior to branch office setup. This type of branch office gets treated like a foreign entity and is liable to pay higher Income Tax up to 40%.

Before we proceed, you must know that you have to be eligible first to get your branch office registered in India. The application form for the same needs to be filed with the AD Category 1 Bank, given that If the foreign company is a subsidiary and ineligible, then the parent company must have issued a Letter of Comfort (LOC).