Foreign corporations/entities
engaged in manufacturing and trading activities abroad are allowed
to set up branch offices in India. The branch office can carry
the same, or substantially the same, activities as the ones carried
on by the foreign corporation overseas except that it cannot carry
manufacturing activity on its own (sub-contracting is permitted).
It can also stock & sell products in India and is permitted
to acquire immovable property necessary or incidental to carrying
on activities permitted by RBI. For opening a branch office in
India, foreign corporations require a specific approval from the
Reserve Bank of India (RBI). Such approval prescribes the activities
that a branch office may undertake in India. Consequently, a foreign
corporation cannot undertake any activity in India that is not
specifically permitted by RBI.
A branch office is required to
register itself with the Registrar of Companies and is required
to comply with certain procedural formalities prescribed under
the Companies Act, 1956. For income tax purposes, a branch office
is treated as an extension of the foreign corporation in India
and taxed at the rate applicable to foreign companies. Further,
transactions between a branch and the foreign corporation are
subject to Indian transfer pricing regulations.
As per exchange control regulations,
the branch can meet its expenses out of the revenues generated
in India and its post-tax profits in India are freely repatriable
to the foreign corporation. Further surplus funds, on winding
up of the branch office, can be repatriated to the foreign corporation
subject to RBI approval.
Our India Operations Team comprises
of professionals who have wide and extensive experience in structuring
India entry strategy for many corporates and in advising and assisting
on various matters in connection therewith. Our range of services
includes :
Advising on / formulating the entry strategy
for India
Obtainment of approval from the Reserve Bank
of India
Obtainment of Registrations with regulatory
authorities
Total guidance & assistance in the incorporation
of the company including approval for name of the company, drafting
of Charter Documents, filing of documents required for incorporation
and obtainment of Registration from the Registrar of Companies
Advising on the various compliance procedures
under relevant laws, rules and regulations
Maintenance of all accounting and other
records pertaining to the Project office
