Today, we will be beginning a new topic, which is rather vast and this entails the different types of foreign company entities that can set up office in India and the processes followed.<\/p>\n\n\n\n
First in this series will be a FOREIGN COMPANY WITH BRANCH OFFICE IN INDIA.<\/strong><\/p>\n\n\n\n Foreign companies can opt to open branches in India if they are allowed to function in the prescribed limits, which are discussed here below. A foreign company opening a branch in India needs to know the activities that are allowed to perform as a branch. A branch office is set up by a foreign company to carry out the branch activity. The foreign company can have any revenue from the Indian branch office, only from the activity allowed by RBI. Let us now look at the prerequisites:<\/p>\n\n\n\n a. Prerequisites for opening foreign company branch office in India<\/strong> Branch office is the best form of business to test and understand Indian market. Branch office to carry additional business should apply for prior approval with RBI. General Features<\/strong><\/p>\n\n\n\n \u2022 The name of the Indian branch office should be the same as the parent company. b. Documents required for branch office RBI approval<\/strong><\/p>\n\n\n\n \u2022 Form FNC three copies. c. Permitted activities for foreign company branch office in India engaged in manufacturing or trading activities:<\/strong> d. Prohibited activities<\/strong><\/p>\n\n\n\n The following activities are prohibited for a foreign company branch office in India. Conclusion: <\/strong> Foreign companies not interested or not planning to have long-term plans for Indian operations can set up branch as a temporary office. It helps to spread its business to diverse locations and increases customer base.<\/p>\n\n\n\n Share & Review us at : <\/p>\n\n\n\n Facebook <\/strong>: https:\/\/www.facebook.com\/totalsols<\/a> Today, we will be beginning a new topic, which is rather vast and this entails the different types of foreign company entities that can set up office in India and the processes followed. First in this series will be a FOREIGN COMPANY WITH BRANCH OFFICE IN INDIA. Foreign companies can opt to open branches in […]<\/p>\n","protected":false},"author":1,"featured_media":209,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[86,84,85],"class_list":["post-259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-company-with-branch-office-in-india","tag-foreign-company-branch-office-in-india","tag-foreign-company-with-branch-office-in-india","tag-incorporation"],"_links":{"self":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/comments?post=259"}],"version-history":[{"count":2,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/259\/revisions"}],"predecessor-version":[{"id":264,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/posts\/259\/revisions\/264"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media\/209"}],"wp:attachment":[{"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/media?parent=259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/categories?post=259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/total-sols.com\/blog\/wp-json\/wp\/v2\/tags?post=259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\u2022 Profit making track record for immediate preceding 5 years in foreign company\u2019s home country.
\u2022 Net worth of not less than USD 100,000.
\u2022 The last audited balance sheet of the foreign company.
\u2022 Foreign proprietary concerns are not allowed to set up a branch.
\u2022 RBI Act
\u2022 Companies Act 2013.
\u2022 RBI permission is mandatory.
\u2022 The Indian office expenses to be met by remittance of head office or through the revenue generated from Indian operation permitted by RBI.
\u2022 Branch office can function only after getting RBI licence.<\/p>\n\n\n\n
\nApplication to be made to RBI in form FNC annex 1:<\/p>\n\n\n\n
\n\u2022 The governing body to issue licence is RBI.<\/p>\n\n\n\n
\n\u2022 Letter from the principal company to RBI.
\n\u2022 Letter of authority from parent company to local representative.
\n\u2022 Letter of authority\/resolution form parent company for setting up branch office in India.
\n\u2022 Comfort letter from parent company intending to support the operation in India.
\n\u2022 Two copies of English version of certificate of incorporation, MoA(charter document) of parent company attested by Indian Embassy or notary public in the country of registration.
\n\u2022 Certificate of incorporation duly translated and notarized and certified by Indian consulate.
\n\u2022 The latest audited balance sheet and annual accounts of parent company duly translated and notarized for past three years certified by Indian Consulate and Directors.
\n\u2022 Name, address, telephone number and email ID of the authorized person in home country.
\n\u2022 Details of bankers in the country of origin along with bank account number.
\n\u2022 Commitment from the organization that it is open to report.
\n\u2022 Opinion sought by the bankers by the GOI\/RBI.<\/p>\n\n\n\n
\u2022 Export\/import of goods.
\u2022 Professional or consultancy services.
\u2022 Research work of parent company.
\u2022 Promoting technical and financial collaboration.
\u2022 Representing parent company and acting as buying\/selling agent in India.
\u2022 Services in information technology and development of software in India.
\u2022 Technical support for the products supplied by the parent group company.
\u2022 Foreign airline or shipping company.<\/p>\n\n\n\n
\n\u2022 Retail trading activities.
\n\u2022 Branch office not allowed to carry out manufacturing or processing activity in India directly or indirectly.<\/p>\n\n\n\n
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