Branch Office (BO)
For foreign companies looking to conduct commercial activities in India without incorporating a separate legal entity.
What is a Branch Office?
A Branch Office (BO) is an extension of a foreign company permitted to undertake limited revenue-generating operations in India — such as export/import, consulting, technical support, or representative sales. It is not a separate legal entity, and all liabilities rest with the parent company.
Establishing a BO requires RBI approval/confirmation via Authorized Dealer (AD) Bank and is regulated under FEMA guidelines.
Why Foreign Companies Use Branch Offices
- To test the Indian market before incorporating a company
- For commercial contracts that don’t need separate legal incorporation
- To offer after-sales support, product servicing, or liaison for group clients
- To reduce compliance and taxation burdens compared to full-fledged subsidiaries
How We Help with Branch Office Setup
At Business Lex, we manage end-to-end BO setup and post-setup support:
- Drafting and filing of BO Setup application with the AD Bank/MCA
- Assisting with AD Bank due diligence and RBI approval
- Preparing parent company documentation, board resolution, financials
- Coordinating local office lease and PAN/TAN applications
- Ensuring FEMA compliance
- Advising on permissible activities and legal boundaries
- Complying with audit, tax, and FEMA reporting requirements
Common Use Cases
- After-sales service and warranty support
- Technical and product training operations
- Export/import coordination offices
- Marketing teams for global companies
- Consulting or legal service units linked to HQ
FAQs
1. Can a Branch Office generate revenue in India?
Yes — but only within RBI-permitted activities. Retail, manufacturing, or trading are not allowed.
2. How long does RBI take to approve a BO?
Typically 3–5 weeks through the AD Bank route (varies by bank and documents).
3. Is a BO subject to tax in India?
Yes. Income from Indian operations is taxed at the corporate tax rate (usually as a foreign company).