Foreign offices setup in India:

We at Punch Solutions can assit you to establish Liaison Office or to open up a project office/branch office in India.

From taking approvals to filing applications to regular followups is all taken care of by our skilled professionals at Punch Solutions.

Foreign offices setup in India:

Foreign offices setup in India:

inquiry for Foreign offices setup in India:

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Introduction

  • Branch Office
  • Project Office
  • Liaison Office

Globalization, which refers to free flow of goods, services, people and capital across nations, has revolutionized the entire economic scenario and has generated opportunities for growth, innovation and development. India has a billion plus population, with rising income and standards of living. Every MNC wants a share in this ever-growing market.
There are a multitude of laws governing foreign entities in India: Companies Act, 2013; Income Tax Act, 1961; Foreign Exchange Management Act, 1999;
A foreign company can simply incorporate a subsidiary company in India, however regulatory compliances can be grueling and not economical for smaller companies. Accordingly, such companies may choose to set-up an office which is not a subsidiary and can take the following form:

Branch Office

A branch office mirrors the function of a parent company. The offices are established to perform similar business operations as the foreign parent company at different locations in India. Branch offices can carry on substantially the same business as the parent company. They can carry out all the trading activities that a parent company does.

Project Office

The RBI grants the parent company situated abroad to have project offices in India for representing the interests of the parent company executing projects in India but excludes Liaison Office. The project office can only undertake the activity relating and incidental to the project. The primary condition for opening a project office India is that the parent company must have secured a contract from an Indian company.

Liaison Office

Liaison office is an office that facilitates close working relationships between the parent company situated abroad and the business parties in India. Liaison offices have restrictions and cannot undertake any business activities in India and also cannot earn any income in India. They represent the foreign company and encourage technical/financial collaboration between parent or group companies and Indian companies.

Statutory requirements

Any foreign company, desirous of setting up an office in India, needs to obtain RBI approvals and satisfy other conditions prescribed under FEMA Act, 1999.

Compliance under the Companies Act, 2013

  • One Time Compliance
  1. Form FC-1: For intimation of approval from RBI.
  2. Form FC-2: Return of alteration in the documents filed for registration by foreign company.
  • Annual Compliances
  1. Form FC-3: Annual accounts along with the list of all principal places of business in India established by foreign company.
  2. Form FC-4: Annual Return of a foreign company

Compliance under FEMA Act, 1999

Branch Offices / Liaison Offices have to file Annual Activity Certificates (AAC) from Chartered Accountants, at the end of March 31,

Compliance as per Income Tax Act, 1961

  • Form 49C: Annual Statement
  • Form 3CEB: Transfer Pricing Report
  • ITR 6: Income Tax Return
  • Annual Activity certificate with Director General of Income Tax

Our Charges

Particular

Branch Office

Project Office

Liaison Office

For Incorporation

₹ 1,00,000

₹ 70,000

₹ 50,000

For All Annual Compliance under various law

₹ 1,50,000

₹ 1,00,000

₹ 70,000