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India Entry

Branch Office

A direct India presence as an extension of the foreign parent, for defined, permitted activities.

Direct presence

Extension of the foreign parent

Permitted activities

Scope reviewed up front

Route comparison

Branch, subsidiary, liaison, project

Direct

Extension of the parent

Defined

Permitted activities only

Compared

Against other routes

Overview

A direct India presence, linked to the foreign parent

A foreign company may consider a branch office to build a direct presence in India while operating as an extension of its foreign parent.

Unlike a subsidiary, a branch office is not a separate Indian company. It is tied to the foreign entity and is generally limited to specified activities. It can suit permitted business without forming a full subsidiary, but scope, tax treatment, reporting, and the link to the parent differ significantly, so it needs careful review.

Foreign parent

Not a separate company

Specified activities

Audience

Who is this for?

Foreign companies

Wanting a direct India presence linked to the parent.

Defined activities

Businesses with permitted activities rather than broad operations.

Route comparison

Groups comparing branch, subsidiary, liaison, and project routes.

The process

What it involves

A branch office is not a universal entry solution. The first step is to check whether the intended activity is permitted, how much operational flexibility is needed, whether staff will be hired or Indian contracts entered, and whether a subsidiary is a better long-term platform.

Eraqus helps assess fit with your business model, regulatory route, documentation, parent requirements, authorised representative details, financial background, tax, ongoing reporting, and possible closure or restructuring.

01

Assess fit with your business model

02

Check the activity is permitted

03

Compare branch, subsidiary, liaison, project

04

Prepare parent documentation

05

Follow the regulatory route

06

Plan ongoing reporting and tax

Before you begin

Key considerations

01

Whether the intended activity can be carried out through a branch office.

02

Tax treatment and reporting differ from a subsidiary.

03

Parent financial background and supporting documentation.

04

Authorised representative in India and ongoing reporting.

05

Comparison with subsidiary, liaison office, and project office routes.

After incorporation

Ongoing compliance and the right choice

A branch office works well when the purpose is clear and the permitted activity matches the parent’s India plan. Choose it only after comparing with a subsidiary, liaison office, project office, or joint venture.

Tax treatment
Periodic reporting
Parent link
Closure or restructuring
FAQ

Frequently asked questions

No. A subsidiary is a separate Indian company, while a branch office is an extension of the foreign parent. Tax and reporting treatment differ.

No. A branch office is limited to permitted activities, so the intended activity should be reviewed before choosing this route.

Discuss your requirement with our team

Describe where your business stands and what you plan next. The team will help you understand the structure, documentation, and compliance that fit your situation.

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