What a branch office is.
A branch office is an extension of your UK company in India, not a separate legal entity. The UK company is directly responsible for its liabilities. It is set up under FEMA rules and must be registered as a foreign company with the Registrar of Companies.
Branches suit UK companies that want to provide services in India for a defined purpose and repatriate profits easily. For most businesses that plan to grow or manufacture in India, an Indian subsidiary is more flexible.
Who is eligible.
Profits in the last five years
A profit-making record in each of the five financial years before applying, in the UK.
At least USD 100,000
Paid-up capital plus free reserves, less intangibles, in the latest audited accounts.
Parent letter of comfort
A UK subsidiary that does not qualify can rely on a letter of comfort from a parent that does.
RBI or government
RBI through your bank for automatic-route sectors; government approval for others.
What a branch can and cannot do.
- Export and import of goodsTrading in and out of India, but not retail trading.
- Professional or consultancy servicesAdvising Indian clients on behalf of the UK company.
- Research workIn areas in which the UK company is engaged.
- IT and software servicesSoftware development and IT services in India.
- Technical and financial collaborationPromoting collaboration between Indian and UK companies.
- Not allowedManufacturing or processing in India, directly or indirectly, and retail trading.
How we set up your branch.
Eligibility and sector
Track record, net worth and whether the activity is permitted.
Form FNC through your bank
With apostilled UK documents, accounts and a banker's report.
RBI approval and UIN
The branch receives a Unique Identification Number.
ROC registration
Form FC-1 within 30 days of setting up the place of business.
PAN, GST, bank and payroll
The registrations a branch needs to start work.
Tax and annual filings.
A branch is taxed in India as a foreign company, at a base rate of 35% plus surcharge and cess. There is no separate tax on sending branch profits to the UK. Transactions with the UK head office must be at arm's length under transfer pricing rules.
| Filing | To | When |
|---|---|---|
| Audited accounts of the Indian business | ROC, on FC-3 | Within 6 months of the year end |
| Annual return | ROC, on FC-4 | Within 60 days of the year end |
| Annual Activity Certificate | AD bank and RBI | Each year, certified by a Chartered Accountant |
| Income tax return | Income Tax Department | By the due date for foreign companies |
| Transfer pricing report | Income Tax Department | Where there are dealings with the UK company |
Why UK companies choose us in India.
We work with your UK finance team, lawyers and auditors, and translate Indian requirements into plain English.
Every filing and certificate is checked by a second Chartered Accountant before it goes in.
A written scope, timetable and fee before work starts.
One calendar of every MCA, RBI, GST and income-tax deadline for your Indian entity.
Set-up, accounts, payroll, tax, audit and RBI filings handled together.
Encrypted document sharing and digital signatures. Directors never need to travel.
Branch offices for UK companies everywhere.
We work with UK companies headquartered in every part of the UK, from start-ups in London and Manchester to established groups in the Midlands, Scotland and Wales. All the work is coordinated online with your UK team.
London
South East
Midlands
North of England
East and South West
Scotland, Wales, NI
Branch office FAQs.
Thinking about a branch in India?
Tell us what the branch will do. We will check eligibility and compare it with a subsidiary.
This page is general guidance based on the Companies Act, 2013, FEMA, RBI directions and Indian tax law as they stand. It is not legal or financial advice for your situation. Rules, limits and deadlines can change, so please speak to us before acting on it.