Foreign Branch Office Registration
Manage your finance in establishing in India with Proton Advisors
Foreign Branch Office in Indian to reach at your doorstep
An Indian branch is established to make transactions in India so that Indians can avail the facility as well. The branches established are totally in a working state but only no new products being manufactured here. All permissions of transactions are given by the Reserve Bank of India. Since, financial transactions happen in these branches one needs to pay the taxes relevant as well else the license could be ceased.
The permissions given are
- Goods can be exported and imported to and from other branches
- Assistance is given to your finances by skilled professionals
- The company is foreign based company and does shipping/airlines
- Searching can be performed in the sectors and company to which the main company is associated to
- Technical support can be provided
- The I.T sector is used at a vast rate for the development in this high technology friendly world
- The main company should be addressed but the transactions can be performed in India
- Monitory or advertising facility can be provided by the partners of the main company.
Conditions which are imposed
- All trading permits are given only by the Reserve Bank of India (RBI) and no other bank.
- The main company based outside India should be given the share of profit by the Reserve Bank of India only
- If any transaction is performed without the approval of RBI it won’t be considered by the main office as a transaction. The branch in India doing it will be penalised.
- The money should be transferred to the account of branch office. Deposits in India won’t be accepted.
- The expenses the branch office faces to establish in India must be achieved by the transactions in India only
- The reputation of any brand or company depends on the reviews of the parent company and should be considered by all the branches.
Process to establish a branch in India
RBI issues all the permissions to establish a branch in India. Thus an application should be given to them. The application must cover all the relevant points of establishing a company such as –
- The work and background of the company. The functions of the company.
- Interests of the branch, the objectives of it.
- Reasons why a branch is needed in India.
- Any collaboration with the companies other than that of India should be mentioned.
The companies established in the special economic zones in India must not be given special benefits. All the earnings should be done within that zone only and not from outside. The incentives are given to them by the foreign companies. But they are not treated as a special case to earn from outside as well.
Thus, while establishing a branch company in India all the points should be taken into account. This will help you to manage your financial issues and one must also manage the income tax issues for smooth running of the branch.