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.
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.