Can a foreign company open office in India?

Foreign companies are allowed to set up a branch office in India. But unlike the case of setting up a company, a branch office requires an approval from the Reserve Bank of India (RBI). Only upon getting the branch license from RBI, the foreign company is allowed to commence the operations.

Do foreign companies pay taxes in India?

Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act. While a domestic company is taxed on its universal income, a foreign company is only taxed on the income earned within India i.e. is being accrued or received in India.

How do I open a foreign branch?

Regardless of the country of incorporation, a branch needs to have a person who is responsible for its activities and the respective representative, who is generally required to be either a citizen of the chosen country, either a person who has received a residency permit from the local authorities, has a high level of …

How can I open a branch in India?

Documents required for forming a Branch Office in India

Form FNC 1 (Three copies)
Letter from the principal officer of the Parent company to RBI.
Letter of authority from the parent company in favor of Local Representative.
Letter of authority/ Resolution from parent company for setting up BRANCH office in India.

Which branch works like agent of head office?

Comparison Chart

Basis for Comparison	Branch	Subsidiary
Reports to	Head office	Holding company
Business	Branch conducts same business as parent organization.	Subsidiary may or may not conduct same business as parent organization.
Separate legal standing	No	Yes
Accounts maintenance	Either separately or jointly	Separately

Do I need to pay tax on foreign income in India?

In case of RNOR individuals, the foreign income (i.e., income accrued outside India) shall not be taxable in India. Foreign sources means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India).

Is a branch office a legal entity?

A Branch is a more independent entity that conducts business in its own name but still acts on behalf of the company. A Branch is not legally separate from the foreign parent company and so is also subject to the local laws governing the foreign parent company.

Is a foreign branch a legal entity?

It is considered a separate legal entity, which has several distinct pros and cons, depending on your foreign growth goals and what internal resources you have available to manage this new entity.

How do I open a branch?

To open a branch office, a company has to get approval from its directors. Hence a company must call a board meeting on a pre-decided date by giving notice to all the directors. Board of directors must pass a resolution to open a branch office. And BOD must authorize a director to carry on all the related activities.

Can a foreign company open office in India? Foreign companies are allowed to set up a branch office in India. But unlike the case of setting up a company, a branch office requires an approval from the Reserve Bank of India (RBI). Only upon getting the branch license from RBI, the foreign company is allowed…