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Set up of Branch Office/Liaison Office

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Introduction

“Tax and Services,” your trusted partner in navigating the intricate landscape of legal matters. As experts in the field of taxation and legal services, we understand the importance of strategic business expansion. One avenue that holds immense potential is setting up a Branch or Liaison Office in India, a vibrant and dynamic market with a rapidly growing economy.

Navigating the regulatory landscape of a foreign country can be a daunting task, but with our specialized expertise, we simplify the process for you. India, being a hub of opportunities, offers a favorable environment for businesses looking to establish their presence. Whether you are considering a Branch Office for operational expansion or a Liaison Office for market exploration and representation, we provide comprehensive assistance tailored to your specific needs.

Our team of seasoned professionals possesses an in-depth understanding of Indian legal and tax frameworks. We guide you through the intricacies of compliance, ensuring a seamless and compliant establishment of your branch or liaison office. From initial consultations to the final paperwork, “Tax and Services” is committed to delivering excellence at every step.

At “Tax and Services,” we recognize the unique challenges and opportunities that businesses encounter when venturing into new territories. With a focus on efficiency and compliance, our services are designed to empower you to make informed decisions and optimize your business operations.

Trust us to be your partner in unlocking the full potential of the Indian market. Together, let’s embark on a journey of growth and success. Welcome to a world of possibilities with “Tax and Services.

Conditions for Setup of Branch Office

Welcome to Tax and Services, your trusted partner in navigating the legal landscape. Setting up a branch office is a strategic move that requires careful consideration and adherence to various legal conditions. Here, we outline the essential requirements for the establishment of a branch office:

1. Legal Structure and Registration:

  • Choose an appropriate legal structure for your branch office, considering options such as a Limited Liability Company (LLC) or a Corporation.
  • Register the branch office with the relevant authorities, complying with local and national regulations.

2. Name and Address:

  • Ensure the proposed name of the branch office complies with local business naming regulations.
  • Provide a registered office address for the branch office. This address will be used for official communication and legal notices.

3. Regulatory Approvals:

  • Obtain necessary regulatory approvals from government bodies or industry-specific regulators before commencing operations.
  • Comply with sector-specific regulations that may apply to your business activities.

4. Taxation Requirements:

  • Obtain a Tax Identification Number (TIN) for the branch office.
  • Understand and comply with local and national tax regulations, including corporate income tax, VAT, and other applicable taxes.

5. Employment and Labor Laws:

  • Comply with local labor laws when hiring employees for the branch office.
  • Ensure proper documentation and adherence to employment contracts, working hours, and other labor-related regulations.

6. Financial Reporting:

  • Maintain accurate financial records in accordance with accounting standards and regulations.
  • Submit timely financial reports to regulatory authorities as required.

7. Banking and Finance:

  • Open a bank account for the branch office, ensuring compliance with banking regulations.
  • Familiarize yourself with currency exchange regulations if your branch deals with international transactions.

8. Intellectual Property Considerations:

  • Protect your brand and intellectual property by registering trademarks, patents, or copyrights as applicable.

9. Environmental and Safety Compliance:

  • Adhere to environmental and safety standards relevant to your industry.
  • Obtain necessary permits and certifications to demonstrate compliance with environmental regulations.

10. Renewals and Compliance Monitoring:

  • Keep track of renewal dates for licenses and permits.
  • Establish a system for monitoring ongoing compliance with all legal and regulatory requirements.

At Tax and Services, we understand the complexities of legal processes. Seek professional advice to ensure a smooth and legally compliant setup for your branch office. Our expert team is here to guide you through every step of the way, ensuring your business operates within the bounds of the law.

Documents Required for Incorporation

Passport size photo

PAN Card and Aadhar Card of the Authorized representative

Passport of Foreign Nationals

Business Address Proof Owned: Copy of Registry and Latest Electricity / Water Bill / Phone Bill

Business Address Proof Rented/Leased: Rent Agreement / NOC from the Owner and Latest Electricity / Water Bill / Phone Bill

POA/Board Resolution for appointing authorized representative

Specific Documents

Incorporation documents from the parent company translated in English

List of Directors and Shareholders of parent company

Details of shareholders of the applicant company

Audited financial statement of the last Five/Three preceding years

Board Resolution from the parent Company for setting up of branch office / liaison office / project ofice in India

Banker’s Report from the applicant’s banker in the host country

Net worth certificate attested by Certified Public Accountant (CPA)

Board Resolution for Opening Bank Account with the Banker

Process of Liaison /Project Office/Setup Branch Office in India

Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team which help us in analyzing you case.
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Step 01

Document Processing

At the second step we will be requiring the documents in accordance with the questionnaire filled and also as per the list stated above by you so that we can arrange them as per the requirement and for processing.
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Step 02

Application for DSC

First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.
Step 03

Filing of Application with AD Bankers

The application for set up of Branch Office/Liaison Office/Project Office of foreign company will be filed in FORM FNC (Annex B) to RBI through AD Bankers with which the company intends to have banking relations.
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Step 04

Approval from RBI for Set up

RBI shall approve the form by allotting a Unique Identity Number and intimate the AD Bankers who will issue the approval letter for setting up Branch Office/Liaison Office/Project Office of foreign company.
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Step 05

Preparation and E-filing for Registration with ROC

After the receipt of the approval from AD Banker, an application for registration of Branch Office/Liaison Office/Project Office.
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Step 06

Get Certificate of Incorporation

Lastly, after the approval a Certificate of Incorporation will be provided through e-mail which signifies that the office has been setup.
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Step 07

More Insight on Indian Subsidiary Registration for Foreigners

  1. Obtain a Digital Signature Certificate (DSC) for authorized signatories to facilitate secure online transactions and communications with Indian authorities.
  2. Choose a unique name for the branch office, ensuring it complies with the Ministry of Corporate Affairs (MCA) guidelines.
  3. Submit the required documents, including the parent company’s board resolution, to the Reserve Bank of India (RBI) for approval to establish the branch office.
  4. Appoint a Resident Authorized Representative in India for liaising with local authorities and handling legal obligations.
  5. Open a designated Indian bank account for the branch office to facilitate financial transactions and comply with regulatory requirements.
  6. Obtain a Tax Deduction and Collection Account Number (TAN) for complying with Indian tax regulations on deducted or collected taxes.
  7. Register the branch office with the Ministry of Corporate Affairs (MCA) and obtain a Certificate of Registration to operate legally in India.
  8. Adhere to Goods and Services Tax (GST) regulations by obtaining a GST registration if the branch engages in taxable activities in India.
  9. Comply with local labor laws by registering under the Employees’ Provident Fund Organization (EPFO) and obtaining a Professional Tax Registration, if applicable.
  10. Maintain compliance with the Reserve Bank of India (RBI) reporting requirements, submitting periodic reports on the branch office’s financial and operational activities.
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