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A direct India presence as an extension of the foreign parent, for defined, permitted activities.
Extension of the foreign parent
Scope reviewed up front
Branch, subsidiary, liaison, project
Extension of the parent
Permitted activities only
Against other routes
A branch office may be considered by a foreign company that wants a direct presence in India while continuing to operate as an extension of the foreign parent. Unlike a subsidiary, a branch office is not a separate Indian company owned by the foreign parent. It is connected to the foreign entity and is generally permitted to undertake only specified activities under the applicable framework.
This structure may be relevant where the foreign company wants to conduct permitted business activities in India without creating a full subsidiary. However, the branch office route requires careful review because the scope of activity, tax treatment, reporting expectations, and connection with the foreign parent are materially different from those of a subsidiary.
Foreign companies wanting a direct, parent-linked India presence
Businesses with defined, permitted activities rather than broad operations
Groups comparing branch, subsidiary, liaison, and project routes
A branch office may be appropriate for certain commercial purposes, but it is not a universal entry solution. The foreign company must examine whether its intended India activity is permitted through a branch office, whether it requires local operational flexibility, whether it plans to hire employees, whether it will enter Indian contracts, and whether a subsidiary may provide a better long-term platform.
Eraqus Advisors helps foreign companies assess the suitability of a branch office in relation to their business model, the regulatory route, documentation expectations, parent company requirements, authorised representative details, financial background, tax considerations, ongoing reporting, and eventual closure or restructuring possibilities.
Whether your intended activity is permitted through a branch office
Different tax treatment and reporting compared to a subsidiary
Parent company financial background and documentation
Authorised representative in India and ongoing reporting
Comparison with subsidiary, liaison, and project office routes
A branch office can be useful where the purpose is clear and the permitted activity aligns with the parent company’s India plan. It should be selected only after comparing it with a subsidiary, liaison office, project office, or joint venture.
Discuss your requirement and we will help you understand the structure, documentation, and compliance that fit your situation.
No. A branch office is an extension of the foreign parent and is generally limited to specified activities, while a subsidiary is a separate Indian company. The tax treatment and reporting differ materially.
Only activities permitted under the applicable framework. The intended activity should be reviewed before choosing this route.
A long-term India platform with ownership control for foreign parent companies.
Keep your entity active, credible, and audit-ready with a disciplined annual cycle.
Tell us where your business stands today and what you are planning next. We will help you understand the structure, documentation, and compliance that fit your situation.