Branch Office / Liaison office of a Foreign Company in IndiaCompanies registered outside India (Foreign Company) can establish their operations in India without registering a subsidiary company. The scope of operation of such offices is limited and is preferred for representative office, sourcing, technical support, market support in India. The steps involved in establishing a branch / liaison office in India are:
CompaniesInn can help you for obtaining the approval and registration.
Steps - Establishing a Foreign Company Office in IndiaApproval from Reserve Bank of India An application in Form FNC-1 has to be filed with the Reserve Bank of India, Mumbai for requisite permission. The application will be considered on case-to-case basis and the permission from Reserve Bank of India generally takes about One month time. Registration with Registrar of Companies, New Delhi Upon receipt of approval from Reserve bank of India, requisite documents have to be filed with Register of Companies, New Delhi for registration under Companies Act. After scrutiny of documents, Register of Companies, New Delhi will register the Foreign office and issue the certificate of registration. Thereafter, Foreign Company can open bank account and start operation in India.
Different types of Foreign Company offices in IndiaThe following are types of Foreign Company offices that are allowed in India. Such offices can undertake only those activities as may be permitted by the Reserve Bank of India. Liaison Office A Liaison Office (also known as Representative Office) can undertake only liaison activities, i.e. it can act as a channel of communication between Head Office abroad and parties in India. Liaison Offices are not allowed to undertake any business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of foreign exchange by the Head Office of the Company. Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Reserve Bank of India. Branch Office A Foreign Company engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent/group companies and undertake the following activities.
Project Office Reserve Bank of India has granted general permission to foreign companies to establish Project Offices in India, if they have secured a contract from an Indian company to execute a project in India, and
Branch Office - SEZ Reserve Bank of India has given general permission to foreign companies for establishing branch/unit in Special Economic Zones (SEZs) to undertake manufacturing and service activities. The general permission is subject to the following conditions:
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