Setting up Branch Offices in India

Foreign companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up branch offices in India with specific approval of the RBI. Branch offices are permitted to represent their parent/group companies and undertake the following activities in India:

(i) Export/import of goods

(ii) Rendering professional or consultancy services

(iii) Carrying out research work, in which the parent company is also engaged

(iv) Promoting technical or financial collaborations between Indian companies and parent or overseas group company

(v) Representing the parent company in India and acting as buying/selling agent in India

(vi) Rendering services in Information Technology and the development of software in India

(vii) Rendering technical support (maintenance,  etc.) to the products supplied by parent companies

To read the full version of this article, please purchase the March 2010 issue of India Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may contact any Dezan Shira & Associates' five national offices at india@dezshira.com for advice or visit www.dezshira.com.