How is a Branch office set up?
• To represent its parent company to conduct business in India • To undertake research work in its area of business • To trade on a wholesale basis • To encourage possible technical and financial tie-ups between Indian companies and overseas companies. • Offering professional or consultancy services • Offering IT and software services • Giving technical sustenance to the products supplied by the parent company. Branch offices are not permitted to carry out manufacturing, processing and trading activities on their own. An Activity Certificate from a Chartered Accountant has to be submitted annually to the Central Office of FED. For annual remittance of income, Branch Offices may submit required documents to a bank. The track record of the Applicant Company, its existing trade relations with India and financial position of the company are taken into account by the RBI while scrutinizing the application.
