Foreign Company Registration in India: Branch Office vs Subsidiary
India has become an attractive market for foreign businesses looking to expand their operations, reach new customers and establish a long-term presence. However, entering the Indian market requires a foreign company to choose an appropriate legal structure before starting business activities. Two commonly considered options are setting up a Branch Office or incorporating an Indian Subsidiary Company . Although both structures allow a foreign business to operate in India, they are quite different in terms of legal status, ownership, permitted activities, taxation, compliance and operational flexibility. Understanding these differences can help a foreign business select the structure that fits its investment plans and business objectives. What Is a Branch Office in India? A Branch Office is an extension of a foreign company established in India . It does not have a separate legal identity from the foreign parent company. The activities of the Indian branch are therefore carried out a...