Project Office Registration

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Branch Office of a Foreign Company

A foreign company can freely operate in India by registering a branch by obtaining approval of the reserve bank of India through AD category 1 Banker and further registration of the foreign company with the ROC. Such a branch office is treated as a foreign entity and is subject to higher Income Tax @ 40%.

The eligibility requirements for registration of a branch of a foreign corporation is explained in the below section, the application to establish is filed with to the AD Category 1 Bank, provided the applicant foreign entity is having sound financial track record of the past 5 years and in case the applicant is a subsidiary and not eligible, then the parent company or group company may remove the defect by issuing a Letter of Comfort (LOC).

Minimum Requirements of Project Office Registration

Net Worth Requirement

The foreign parent company must have a profitable track record of five years in a row with a net worth of more than $ 1,00,000/- duly supported by financial statement.

Profit Remittance Allowed

The profits of the branch office are freely allowed to be remitted from India to its parent company after payment of applicable taxes, after the audit if books of A/c.

Name of Branch Office

The name must be the same as that of the foreign parent company, and for each new office of such a branch office, a fresh approval is required from RBI with justification.

Taxation in Indian

The income tax on the profits of the branch office of foreign entities in India is 40% plus surcharges as applicable. GST is applicable to the supply of goods or services.

Documents Required Attestation / Appostile

Document From Mother/Parent Company

Certificate of Incorporation / Registration of Foreign Company
Memorandum of Association (MOA) and Articles of Association (AOA)
List of Details in respect of Directors/Key Executives
Details of shareholders of the applicant company
Net worth certificate attested by Certified Public Accountant (CPA)
Audited financial statement of the last Five preceding years
Banker’s Report from the applicant’s banker in the host country

Documentation for the Company Registered Address

Colour Photo – 5
Passport – 5 Copy
Business Visa Copy with Immigration Stamp of arrival
National Identity Card – 5 Copy
Latest Address Proof (Bank Statement/ Electricity/ Water Bill/ Phone Bill)
Board Resolution Appointing the AR
Power of Attorney in the name of AR

Process & Timeline for Branch Office Registration in India

Application for Digital Signature of Authorised Signatory - Day - 1

A digital signature is the equivalent of physical or paper signature under the information technology act. As per new process all applications to the registrar of companies are filed in digital format which need to be authenticated by the digital signature of the proposed shareholders and directors as the case may be. The filing process starts with the issue of digital signature for all the promoters.

Filing of Application with RBI through AD Bank - Day 1-3

The application for registration of a branch office of a foreign company is filed in the prescribed form – FNC to the RBI through AD Bank (Authorised Dealer). The AD Bank plays a crucial role as all the communication to the RBI has to be routed through them. We have an excellent relationship with many banks in India, which certainly help in obtaining the approval fast. The permission once granted remain valid for six months and you may apply for the extension of the same if required.

Verification of KYC from Banker of Parent Company - Day - 7

After FNC Form is filed with the AD Bank, a request for verification of documents is sent to the banker of the foreign company. This process is also known as swift based verification. After receipt of confirmation of the documents from the foreign banker, the next process of approval is proceeded with. The RBI/AD Banker may seek clarification or any additional document which need to be submitted.

Approval of RBI for Project Office Registration in India - Day - 15

There is a specific policy of approving the establishment of a branch office by the AD Banker itself and only cases where the automatic route is not available the cases are forwarded for prior approval of the RBI. The process of approval after swift verification is of a week.

Registration of Project office of Foreign Company with the ROC - Day - 16-25

After approval of the RBI for the establishment of the branch office in India, an application for registration of branch office of the foreign company is filed in form FC-1 within 30 days of such approval. In case there are Indian directors the DIN number of such director is needed, and the digital signature of the authorised signatory is required to e-file statutory forms with the ROC for their approval.

PAN Card, Tax Deduction Number & Bank A/c Opening - Day - 26

Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential for compliance with the tax rules. The bank account of the branch office can be opened after allotment of Pan Number by the Income Tax Department.

Registration with State Police - Day - 35

Finally, the branch office needs to register it with the state police (In the office of the superintendent of Police). The application must be accompanied by the RBI approval and KYC of all authorised persons in India and the foreign company.

GST Registration & IEC - Day - 35

By this time the Branch Office would have received the Bank Account and cheque book, we would need a copy of the check for making application for GST Registration and Import Export Code for the Branch Office of the foreign Company

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Nov 25