Company in India & Branches in Outside India

company formation in India & branches outside India.

An organisation grows its business by opening up its branch workplaces in different parts of the residential nation and as well as in other countries. A branch office alludes to a foundation which carries on substantially the same business and activity action is done by its Head Office. If a person who residence in India desires to enter into overseas market, he can either enter by establishing branch office outside India or else he can form an independent Company outside India. The organisation formed outside India may be in the form of fully owned subsidiary or Joint Venture Company.

A person who residence in India being a Firm or Organisation or Body Corporate registered in India is eligible to establish a branch outside India.

•           Spreading its business to various areas and hence expanding the client base

•           Bringing its item closer to the clients by expanding their accessibility to it.

•           Making the circulation and showcasing of its products and services simpler and more effective.

•           No person resident outside India shall, without prior approval of Reserve Bank of India (RBI) establish in India a branch or a liaison office or any other place of business by whatever name called.

•           Application in Form FNC-1 has to be made to RBI, to get the above mentioned approval.

•           However, no approval is be necessary for a Banking company, if such company has obtained necessary approval under the provisions of the Banking Regulation Act, 1949.

•           Setting up of liaison office (Representative Office) will also require RBI approval, even if it does not undertake business activity in India.

•           However, Foreign Insurance Companies can establish liaison offices in India, if they have obtained prior approval from Insurance Regulatory & Development Authority (IRDA).