Branch Office (BO)

Service Details

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.

Typically 3–5 weeks through the AD Bank route (varies by bank and documents).

Yes. Income from Indian operations is taxed at the corporate tax rate (usually as a foreign company).