What is the procedure for setting up Branch office?

Permission for setting up branch offices is granted by the Reserve Bank of India. Reserve Bank of India considers the track record of the Applicant Company, existing trade relations with India, the activity of the company proposing to set up office in India as well as the financial position of the company while scrutinizing the application. A branch office is not allowed to carry out manufacturing, processing activities directly/indirectly. A Branch Office is also not allowed to undertake Retail Trading activities of any nature in India. Reserve Bank permits companies engaged in manufacturing and trading activities abroad to set up Branch Offices in India for the following purposes: 

To represent the parent company/other foreign companies in various matters in India e.g. acting as buying/selling agents in India 

To conduct research work in the area in which the parent company is engaged 

To undertake export and import activities and trading on wholesale basis 

To promote possible technical and financial collaborations between the Indian companies and overseas companies. 

Rendering professional or consultancy services 

Rendering services in Information technology and development of software in India
Rendering technical support to the products supplied by the parent/Group companies.