As a Branch Office (“BO”) in India, foreign companies can conduct full-fledged business in India. BO can carry the same or substantially the same trading activities as carried out by their parent or group companies.
Governing Authority-For establishing a Branch Office in India, approval of the Reserve Bank of India shall be required. The application in the prescribed form for seeking permission to establish a Branch office in India shall be forwarded to Reserve Bank India through an AD Category – I Bank.
Governing Law– Foreign Exchange Management Act, 1999 read with Foreign Exchange Management (Establishment in India of branch or office or other places of business) Regulations, 2000.
Time Period-There is no particular time limit as to the duration of the Branch Office. The Branch Office shall continue to operate in India till the same is wound up under the provisions of law.
A Branch Office is not allowed to carry out manufacturing, processing activities directly/indirectly.
Closure of Branch Office
For closure of Branch office request for closure is required to be made to RBI through AD Category -1 Bank.