A foreign company can freely operate in India by registering a branch by obtaining approval of the reserve bank of India through AD category 1 Banker and further registration of the foreign company with the ROC. Such a branch office is treated as a foreign entity and is subject to higher Income Tax @ 40%.
The foreign parent company must have a profitable track record of five years in a row with a net worth of more than $ 1,00,000/- duly supported by financial statement.
The profits of the branch office are freely allowed to be remitted from India to its parent company after payment of applicable taxes, after the audit if books of A/c.
The name must be the same as that of the foreign parent company, and for each new office of such a branch office, a fresh approval is required from RBI with justification.
Application for Digital Signature of Authorised Signatory – 0-1 Days
Drafting of Government Forms and Documents- 3-5 days
Legalisation of Documents- 7-14 days
Filing of Application with RBI through AD Bank 3-5 days
Verification of KYC from Banker of Parent Company- 7-10 days
Approval of RBI for Branch Office Registration in India- 10-15 days
Registration of Branch Office with the ROC- 3-5 days
PAN Card, Tax Deduction Number & Bank A/c Opening- 3-5 days
Certificate of Incorporation / Registration of Foreign Company
Memorandum of Association (MOA) and Articles of Association (AOA) OF Foreign Company
List of Details in respect of Directors/Key Executives
Details of shareholders of the applicant company
Net worth certificate attested by Certified Public Accountant (CPA)
Audited financial statement of the last Five preceding years
Banker’s Report from the applicant’s banker in the host country
Colour Photo of Authorised representative- 5
Passport - 5 Copy
Business Visa Copy with Immigration Stamp of arrival
National Identity Card - 5 Copy
Latest Address Proof (Bank Statement/ Electricity/ Water Bill/ Phone Bill)- Not older than 2 months old
Board Resolution Appointing the AR
Power of Attorney in the name of AR