Foreign Branch Office Setup in India | Savlana Init

Foreign Entry · Branch Office

Foreign Branch Office Setup — India Presence, Global Control.

Set up a Branch Office in India as an extension of your foreign company — RBI approval under FEMA, Form FC-1 registration with the Registrar of Companies, permitted activity compliance, and ongoing FEMA and tax reporting.

A Branch Office in India allows a foreign company to establish a physical presence and conduct permitted business activities directly, without creating a separate Indian legal entity. The Branch Office operates as an extension of the foreign parent, which retains full ownership and direct liability for the Branch Office's operations. This structure is suited to foreign companies wishing to provide services, conduct research, or represent the parent company in India without the structural overhead of a subsidiary. The Branch Office is funded entirely by the parent company through inward remittances.

Establishing a Branch Office in India requires prior approval from the Reserve Bank of India under the Foreign Exchange Management Act, 1999 (FEMA). The application is submitted through an Authorised Dealer (AD) Category I Bank in Form FNC, supported by the foreign company's audited financials for the preceding 5 years and proof of net worth (minimum USD 100,000). Once RBI approval is granted, the Branch Office must be registered with the Registrar of Companies by filing Form FC-1 within 30 days. Annual compliance includes the Annual Activity Certificate from a CA and annual accounts filing (Form FC-3) with the RoC.

We guide foreign companies through the complete Branch Office setup — from assessing eligibility and preparing the RBI application, to FC-1 registration, PAN, bank account setup, and the annual FEMA and MCA compliance calendar. Our CA team ensures that your India presence is set up correctly from day one, with activities that stay strictly within the RBI-approved scope.

Our Branch Office Services

RBI Approval (Form FNC)

Preparation and filing of Form FNC through your Authorised Dealer Bank, including all supporting documents — audited financials, net worth certificate, banker's report, and activity statement.

Form FC-1 Filing with RoC

Registration of the foreign company's Branch Office with the Registrar of Companies by filing Form FC-1 within 30 days of establishing the Branch, with certified copies of the parent company's charter documents.

PAN & Tax Registration

Obtaining Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for the Branch Office, required for Indian income tax compliance and TDS obligations.

Bank Account & FEMA Remittance Setup

Assistance with opening an Indian rupee bank account for the Branch Office and guidance on FEMA-compliant fund remittance from the parent company.

Permitted Activity Assessment

Detailed review of proposed India operations to ensure all activities fall within the RBI-approved scope, minimising the risk of FEMA violations or adverse RBI findings during audits.

Annual Activity Certificate (AAC)

CA-certified Annual Activity Certificate confirming compliance with RBI approval scope, filed with the Authorised Dealer Bank by 30 September each year.

Form FC-3 Annual Accounts Filing

Preparation and filing of Form FC-3 (financial statements of the Branch Office) with the Registrar of Companies within 6 months of the parent company's financial year end.

India Income Tax Return Filing

Filing of Indian income tax return for the Branch Office for income attributable to Indian operations, including computation of taxable income under the Income Tax Act, 1961.

Our Process

Eligibility Assessment & Document Preparation

We assess the parent company's eligibility (net worth, profit track record, country of incorporation) and prepare the Form FNC application package for RBI submission.

RBI Application & Approval

Form FNC is submitted through the Authorised Dealer Bank to the RBI. On approval, the RBI issues a Unique Identification Number (UIN) for the Branch Office.

FC-1 Registration with RoC

Form FC-1, along with certified copies of the parent company's charter documents and the RBI approval letter, is filed with the Registrar of Companies to complete Indian registration.

PAN, TAN & Bank Account

We obtain PAN and TAN for the Branch Office and assist with opening the Indian bank account for operational remittances from the parent company.

Ongoing Annual Compliance

We manage the annual compliance calendar — AAC with the AD Bank, Form FC-3 with the RoC, Indian income tax return, and FEMA reporting obligations.

Why a Branch Office

✓100% parent ownership — no Indian equity or local partner required

✓Direct extension of parent — maintains unified global control and branding

✓Suitable for services, IT, research, trading representation, and support activities

✓No separate Indian incorporation — leaner structure than a subsidiary

✓Profits can be freely repatriated to parent after tax under FEMA

✓Recognised presence — can enter Indian contracts and employ Indian staff

✓Can be wound up and converted to a subsidiary later as operations scale

✓Complete RBI, RoC, PAN, and annual compliance managed by our CA team

Frequently Asked Questions

A Branch Office is not a separate legal entity — it is an extension of the foreign parent company in India. The foreign company remains directly liable for all Branch Office activities. A subsidiary (Indian Private Limited or Public Limited Company) is a separate legal entity with its own liability shield. A Branch Office is restricted to carrying on activities permitted by the RBI and cannot undertake manufacturing, retail trading, or activities not covered by its approval. A subsidiary has broader operating flexibility.

Under FEMA and RBI guidelines, a Branch Office can carry out export/import of goods, professional or consultancy services, research activities (connected to the parent's business), promoting technical or financial collaborations between Indian and foreign companies, representing the parent company and acting as buying/selling agent, IT services and software development, rendering technical support, and conducting foreign airline or shipping company operations. A Branch Office cannot carry out retail trading, manufacturing, or processing activities in India.

An application in Form FNC must be submitted to the Reserve Bank of India (through an Authorised Dealer Bank) along with the parent company's audited financial statements (last 5 years), banker's report, details of proposed activities in India, and proof of net worth (minimum USD 100,000 or equivalent). On RBI approval, a Unique Identification Number (UIN) is issued. The foreign company must then register with the Registrar of Companies by filing Form FC-1 within 30 days of establishing the Branch Office.

The foreign parent company must have a profit track record (profits in the immediately preceding 5 financial years) and a minimum net worth of USD 100,000 (or its equivalent in the parent's home currency) as evidenced by the latest audited balance sheet. Companies from countries that share a land border with India require prior security clearance from the Ministry of Home Affairs, in addition to RBI approval.

A Branch Office must file an Annual Activity Certificate (AAC) from a Chartered Accountant with the Authorised Dealer Bank by 30 September each year, certifying that the activities are in accordance with the RBI approval. The Branch Office must also file Form FC-3 (annual accounts) with the Registrar of Companies within 6 months of the close of the financial year of the foreign company. Income tax returns in India must be filed for income earned in India. FEMA reporting obligations must be met as applicable.

Yes. A Branch Office can be wound up and the foreign company can simultaneously or subsequently incorporate an Indian subsidiary (Private Limited or Public Limited Company) to continue operations. The conversion is not automatic — it requires closure of the Branch Office (including RBI intimation, deregistration from RoC, and tax clearance) and a fresh incorporation of the subsidiary. It is advisable to plan the transition with CA and legal counsel to ensure continuity and FEMA compliance.

Ready to set up your Branch Office in India?

We manage the complete setup — RBI approval, FC-1 registration, PAN, bank account, and annual FEMA and MCA compliance — so your India presence is compliant from day one.