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Branch Office Establishment
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 Reserve Bank. Such Branch Offices are permitted to represent the parent/group companies and undertaking the following activities in India:
A company expands its business by opening up its branch offices in various parts of the domestic country as well as in other countries. A branch office refers to an establishment which carries on considerably the same business and activity as is carried out by its Head Office. Such offices help the company in:
- Export/Import of goods.
- 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 group company.
- Representing the parent company in India and acting as selling / buying agent in India.
- Rendering services in development of software and Information Technology in India.
- Rendering technical support to the products Supplied by group/ parent companies.
Branch Office Establishment in India
A company expands its business by opening up its branch offices in various parts of the domestic country as well as in other countries. A branch office refers to an establishment which carries on considerably the same business and activity as is carried out by its Head Office. Such offices help the company in:
- Spreading its business to diverse locations and thus increasing the customer base
- Bringing its services or products closer to the clients by increasing their accessibility to it.
- Making the distribution and marketing of its services and goods effective and easier.
- The branch offices help in expanding the size of the market for a company's product by attracting more clients, widening the scope of its trading and manufacturing activities as well as bringing more opportunities and opening unexplored avenues for it. Thus, these offices help to fuel the growth of the company and enhance its profitability on a sustained basis.
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