Procedure for Opening a Branch Office in India by Foreign Company
When a company discovers that there is a lot more scope of increasing customers and consumer base in other foreign developing countries like India than their own home country, to expand their business they prefer to open a branch office first which is followed by a whole company set up.
There are a lot of benefits attached to opening a branch office in India in terms of expansion and promotion of a company. It also offers many advantages operating on its own, earning profits, and doing the task of representing the parent company in the other country as well.
If you are an entrepreneur outside of India and desire to expand your company by opening a business in India. We are going to fill in you with the procedure of opening a branch office in India-
ROC(Registrar of companies) and RBI (Reserve bank of India) are two main authorities that are directly associated with the company registration process in India.
For opening a branch firm in India you need to have approval from one of the main authority reserve banks of India and for that matter, you are ascertained to obey two significant acts. One is Foreign Exchange Management Act and the other is the New Companies Act. Only upon getting the branch license from RBI, the foreign company is allowed to begin the business operations.
Opening a branch office in India is not a time-consuming process, it merely takes 2-4 weeks to complete the procedure.
You need to fill the form FNC-1 and submit it to the RBI’s central office to grant permission from the Chief General Manager of the Exchange Control Department. The documents required to fill this significant form as follow:-
- Three copies of Form FNC-1 obtained from the RBI need to be signed, sealed, and delivered back to the RBI.
- Certificate of incorporation / Registration or Memorandum & Articles of Association attested by Indian Embassy/ Notary Public in the Country of Registration.
- Latest Audited Balance Sheet of the applicant entity.
- Letter from the Director/CEO of the Company to the Reserve Bank of India stating its intention to set up a Branch office in India.
- Letter of authority from the parent company.
- Residence proof and passport copies of the authorized personnel.
- A Resolution/covering letter to open the bank account in India.
Later, you need to collect all the documents that are required by the Registrar of offices of the particular state you want an open a branch office such as:-
- Signed Digital Signature Form
- 2 copies of Bank Manager or Postmaster Attested, Self-Attested PAN Card, Postmaster Attested AND Self Attested ID Proof, Postmaster Attested AND Self Attested Address Proof, Passport size photo.
- residence proof
- Scanned Form INC-9,
- Scanned Copy of Form DIR-2
To open a branch office in India seems like a complex process of filling number of forms and performing other important stuff but DBPL works to make it a convenient process. We are the best business setup services provider in India.