Registration of Branch in India by Foreign Company

Rules & Process For Registration of Branch in India by Foreign Company

Under the Companies Act, 2013, the establishment of place of business in India for a foreign company/corporation can be registered with Ministry of Corporate Affairs. Only Eight kinds of activities are permitted for the branch office. It is a registration by the Branch office as an establishment of foreign company in India. On such registration a CIN i.e. Corporate Identity Number is allotted by the Registrar of Companies. Such a branch office is treated as a foreign entity and is subject to higher Income Tax @ 40%.

Further, the Branch shall be governed by the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016. For the purpose of setting up a Branch Office following is the most important qualifications:

1. The networth of foreign head office must be above $ 100,000
2. The applicant company should have profitability track record of Five Years.