Structure · Branch office

Branch office in India — and when a subsidiary beats it.

A branch office is not a separate company. It is the foreign company itself, operating in India, which means the parent carries the liability and the profits are taxed at the rate that applies to a foreign company. It suits some cases well and is the wrong answer for many others.

🧾 CA-reviewed · fee quoted upfront
✓Not a separate legal entity — the foreign parent is directly liable
✓Generally taxed at the higher rate applicable to foreign companies, not the domestic rate
✓Set up under FEMA through an AD Category-I bank; RBI approval is required in some cases
✓Eligibility tests apply — a profit-making track record and a minimum net worth
✓Permitted activities are limited to what the approval specifies — it cannot simply do anything
✓Files an Annual Activity Certificate from a chartered accountant every year
Is a branch office right for you?
Tell us what the India operation will actually do. We will tell you whether a branch qualifies, what it will cost in tax, and whether a subsidiary would serve you better.
💬 Free consult first·CA-reviewed·No payment to start

What we handle for you

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Eligibility, checked first

Track record and net worth tests are assessed against your audited accounts before an application is made.

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The AD Bank route

Application prepared and filed through your AD Category-I bank, with the RBI route pursued where required.

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The tax comparison

We model branch against subsidiary on your own numbers, because the rate difference usually decides it.

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Annual certificate

Accounts audited and the Annual Activity Certificate issued by an independent chartered accountant each year.

Who this is for

🏭 Exporters and contractors

Delivering into India under the parent’s own name.

🔧 Technical support operations

Servicing equipment or contracts already sold into India.

🏦 Regulated groups

Where group policy requires a branch rather than a subsidiary.

Transparent, quoted upfront

Every case is different, so we review yours first and give you a clear price before any work or payment — no charge for the review, no obligation.

Share your details → a CA reviews → you get a fixed quote on WhatsApp.

No hidden charges. You decide after you see the price.

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Common questions

What is the difference between a branch office and a subsidiary in India?

A subsidiary is a separate Indian company owned by the parent and taxed as a domestic company. A branch office is the foreign company itself operating in India — not a separate legal entity, so the parent is directly liable, and its Indian profits are generally taxed at the higher foreign-company rate.

What activities can a branch office carry out?

Only those permitted in its approval. Typically export and import of goods, professional or consultancy services, research, technical support for the parent’s products, and acting as a buying or selling agent. Retail trading and manufacturing are generally not permitted directly.

Is RBI approval needed for a branch office?

Applications go through an AD Category-I bank. Depending on the applicant, the sector and the activity, the RBI route applies rather than the automatic one. Applicants from certain countries require prior approval in all cases.

What are the eligibility requirements for a branch office in India?

A branch office applicant is generally expected to show a profit-making track record over recent financial years and a minimum net worth, evidenced by audited accounts. A liaison office faces a similar but lower test. We check this before applying rather than after a rejection.

How long does it take to open a branch office in India?

Usually longer than a subsidiary — often eight to fourteen weeks, because it depends on the AD Bank and, where required, the RBI.

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Full NRI / foreign-income ITR filing
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