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Harsh Thakur
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How to Successfully Register a Branch Office
Are you an international industry looking to establish a presence in India and navigate through its vibrant market? Establishing a Branch Office can be a ... View More
Branch Office Registration II Compliance for India II JSBA
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One tool available to foreign enterprises looking to get into the Indian market is the Branch Office (BO), which allows them to spread their operations into different places and grow their customer base. Under very rigorous guidelines, international corporations are permitted by the Reserve Bank of India (RBI) to test and conduct business in India, subject to specific restrictions. The Reserve Bank of India must be consulted by foreign businesses intending to open branches in India before establishing branch offices. The Authorized Dealer (AD) Bank must submit an application in Form FNC to RBI on behalf of the Foreign Company.
Section 6(6) of the Foreign Exchange Management Act, 1999 ("FEMA"), as well as Notification No. FEMA 22/2000-RB, dated May 3, 2000, as amended from time to time, governs the formation of a foreign entity's Branch Office in India. Following RBI permission, a foreign company's branch office is required by law to register under the 2013 Companies Act in India. After being registered under the 2013 Companies Act, the Branch Office is able to operate similarly to a standard Domestic Company.
In India, the Branch Office is allowed to carry out the following tasks:
Export and import of products.
Delivering expert or consulting services.
To serve as an agent for purchases and sales in India on behalf of the parent firm.
Doing research in fields of interest to the parent business.
Encouraging parent/group corporations and Indian enterprises to collaborate financially and technically.
Serve as a conduit for information between the parent firm and the Indian businesses.
To provide technical support for the goods that the parent or group companies supply.
The Branch Office, which is present in India, is approved to participate in the activities conducted only by the parent company. They are not, however, permitted to engage in any direct or indirect manufacturing, processing, or retail trading activity in India.
The Advantages of Opening a Branch Office Are as Follows
Extending operations into a new market:
Minimizing the price rate for startup companies.
Improved approach to the administration of the business.
Consumer access after closure.
Optimization of various resources.
Fewer legal compliances than when a new firm is registered.
#compliance #EaseOfDoingBusiness #office #businessworld #company #businessman #accounting #businesswoman #team #consulting #companyregistration #businesstips #teamwork #insolvencylaw #businessgrowth #makeinindia #india #businessowner #Team #Foreigners #tax #businessinindia #businesscompliance #foreignbusiness #businessminded #businessregistration #business #indian #management
Business Solutions, Business Registration, Business Compliances, Company Establishment, Startup India Registration, GST Registration
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