How to open a branch office in India

The Applications are to be made in form FNC and are considered by the RBI under two routes determined by the degree of Foreign Direct Investment (FDI):

  • The Reserve Bank Route: taken when the principle business of the foreign company falls under sectors where 100% FDI is permissible.
  • The Government Route: when the sectors do not permit 100% FDI investment. The RBI considers applications under this in consultation with the Ministry of Finance of India.

download-3The RBI has a few other considerations:

  • Track Record: For a BO a company will require a profit making track record in the in the immediately preceding five financial years in the home country.
  • Net Worth: “a total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement Certified by a Certified Public Accountant or any Registered Accounts Practitioner”. The net worth has to be equal to or more than USD 100,000.

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