Foreign companies engaging in manufacturing or trading activities in India are permitted to set up Branch Offices, with approval of the Reserve Bank of India (RBI). Under a Branch Office, company’s incorporated outside of India can undertake a number of business activities in India, including exporting and importing, and rendering professional services. A BO can perform almost all of the activities that a parent company can perform in India without the hassle of incorporation
Under a Branch Office structure, profits can be freely remitted to the parent company, subject to applicable taxes and submission of annual audit reports to the RBI.
There are a number of restrictions regarding allowable business activities in India, for example, currently retail trading activities are not allowed under a Branch Office structure.
Read the rest of this article for more details and information on the benefits and restrictions related to foreign investment in India through a Branch Office.
For more information, please contact Dezan Shira & Associates about foreign direct investment in India.
