The Branch Office in India is allowed to
carry on only the following activities:
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Export / Import of goods |
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Rendering professional or consultancy
services |
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Carrying out research work, in which the
parent company is engaged |
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Promoting technical or financial
collaboration between Indian companies and
parent or overseas group companies |
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Representing the parent company in India and
acting as buying / selling agent in India |
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Rendering services in Information Technology
and development of software in India |
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Rendering technical support to the products
supplied by parent / group companies |
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Foreign airlines and shipping companies are
also permitted to open branch offices in
India. |
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This is considered a part of the foreign
company and is not treated as a separate
legal entity. The office can undertake
trading activities, but not manufacturing.
It is subject to taxation in India on income
accrued in India. If there is a double
taxation agreement with the country in which
the foreign company is incorporated, the tax
paid in India can be set off against the
total tax payable by the parent company
abroad. |
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A Branch Office can remit the profits (net
of any withholding tax) generated out of its
operations in India on production of the
prescribed documents, and on establishing
that it has earned a net profit by
undertaking the permitted activities. The
Branch Office need not retain any profits as
reserves in India
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