Foreign companies engaged in
manufacturing and trading activities abroad
are allowed to set up Branch Offices in India
for the following purposes:
Rendering professional or consultancy services
Carrying out research work, in which the parent
company is engaged.
Promoting technical or financial collaborations
between Indian companies and parent or overseas
Representing the parent company in India and
acting as buying/selling agents in India.
Rendering services in Information Technology and
development of software in India.
Rendering technical support to the products
supplied by the parent/ group companies.
Foreign airline/shipping Company.
A branch office is not allowed to carry out
manufacturing activities on its own but is
permitted to subcontract these to an Indian
manufacturer. Branch Offices established with
the approval of RBI may remit outside India
profit of the branch, net of applicable Indian
taxes and subject to RBI guidelines Permission
for setting up branch offices is granted by the
Reserve Bank of India (RBI).