Setup Branch/Liason Office in India

Set up of Branch Office/Liaison Office

Introduction

In the ever-evolving landscape of global business, expanding operations through branch offices or liaison offices can be a strategic move. This guide provides a comprehensive overview of the steps involved in setting up a branch office or liaison office, ensuring compliance with legal requirements.

Advantages of RERA Registration

Legal Compliance

All activities related to the setup of a branch office must strictly adhere to the legal frameworks and regulations governing business operations in the respective jurisdiction. Ensure that you have obtained all necessary approvals and permits from the relevant authorities before initiating the setup process.

Registration and Documentation

The branch office must be officially registered with the appropriate government agencies. Provide accurate and complete documentation, including but not limited to incorporation documents, identification details, and any other documents required by the regulatory authorities.

Financial Transparency

Maintain financial transparency by submitting accurate financial statements and reports to the regulatory bodies. Compliance with financial regulations is paramount, and any discrepancies may result in legal consequences.

Taxation Requirements

Fulfill all tax-related obligations promptly. This includes the timely filing of tax returns, adherence to tax payment schedules, and compliance with any other tax regulations applicable to branch offices.

Local Representation

Appoint a local representative, if required by the jurisdiction, to act as the liaison between the branch office and the regulatory authorities. The representative should be familiar with local laws and regulations.

Reporting Obligations

Be aware of and fulfill all reporting obligations imposed by the regulatory authorities. This may include regular submissions of operational and financial reports to ensure compliance with local regulations.

Employment Laws

Adhere to local employment laws and regulations when hiring staff for the branch office. This includes compliance with labor contracts, working hours, and employee benefits, among other employment-related matters.

Business Activities

Clearly define and limit the scope of activities the branch office is authorized to undertake. Ensure that all business activities align with the legal permissions granted for the establishment of the branch.

Renewal and Compliance Updates

Keep track of renewal dates for permits and licenses, and ensure timely renewal to avoid any disruptions in business operations. Stay informed about changes in local laws and regulations that may impact the branch office, and make necessary adjustments to ensure ongoing compliance.

Dispute Resolution

Establish mechanisms for dispute resolution in accordance with local laws. This may include agreeing to arbitration or other alternative dispute resolution methods to address any legal conflicts that may arise.

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
Net worth certificate attested by Certified Public Accountant (CPA)
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
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.

Step 01

Document Processing

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

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.

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.

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.

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.

Step 07

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