Branch Company Formation

• Regulatory Compliance : We ensure that your branch meets all legal requirements, including obtaining necessary approvals and licenses from local authorities. We guide you through the complex regulatory landscape, ensuring full compliance with both central and state laws.
• Documentation Preparation and Filing : Our team prepares all the required documents, including applications, agreements, and declarations. We handle the submission process, ensuring that everything is filed accurately and on time, reducing the risk of delays or rejections.
• Tax Registration and Compliance : We assist with GST registration, PAN/TAN applications, and other tax-related formalities, ensuring your branch is fully compliant with local tax regulations. This includes setting up proper accounting systems to manage your tax obligations.
• Legal and Financial Structuring : We provide expert advice on the optimal legal and financial structure for your branch, taking into account your business goals and operational needs. This includes setting up bank accounts, managing capital requirements, and ensuring the branch is structured for efficient operations.
• Liaison with Authorities : We act as your representative, liaising with government authorities and agencies on your behalf. This includes coordinating with the Registrar of Companies (ROC), local municipal bodies, and other regulatory agencies to facilitate the smooth formation of your branch.
• Ongoing Compliance Support : After your branch is established, we continue to support you with ongoing compliance, including annual filings, audits, and any other regulatory requirements. Our team ensures that your branch remains compliant and operates smoothly.

To establish a branch office in India, a foreign entity must meet specific criteria. The primary requirements include having a profitable track record over the last five financial years in the home country and possessing a net worth of at least USD 100,000 or its equivalent.

However, there is an exception for entities or individuals that may not meet these financial criteria but are subsidiaries of other companies. In such cases, they can provide a Letter of Comfort from their parent company, provided that the parent company satisfies the necessary net worth and profitability requirements. This letter serves as a guarantee, supporting the financial operations of the branch office in India.

Submitting Application to RBI via Authorized Dealer (AD) Bank :

• The first step is to submit an application to the Reserve Bank of India (RBI) through an Authorized Dealer (AD) bank.
• The AD Bank serves as the intermediary between the applicant and the RBI.
• Required documents include a board resolution from the parent company, the parent company's certificate of incorporation, and details of the branch office’s expected activities.

Verification of KYC from the Parent Company's Banker :

• The parent company must provide Know Your Customer (KYC) information from its banking institution.
• This includes a letter of recommendation, bank statements, and other financial documents.
• The AD Bank reviews these documents to verify authenticity and assess the financial stability of the parent company.

Prior Approval from RBI in Exceptional Cases :

• If the branch office's activities fall outside standard RBI procedures, prior approval may be required.
• The applicant must provide a comprehensive justification for the request.
• The RBI will evaluate the application based on its merits and make a decision accordingly.

Obtaining PAN, TAN, and Opening a Bank Account :

• The branch office must apply for a Permanent Account Number (PAN) from the Income Tax Department.
• A Tax Deduction and Collection Account Number (TAN) is also required to manage tax deductions at source.
• Opening a bank account in India is necessary for facilitating financial operations.

GST and Import-Export Code Registration :

• If the branch office will be involved in selling goods or providing services, it must register for Goods and Services Tax (GST).
• If the branch plans to engage in import or export activities, it must obtain an Import Export (IE) code from the Directorate General of Foreign Trade (DGFT).
• The IE code is essential for conducting import and export operations.