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Opening a branch office in India

US company opening a branch in India



2:14 pm on Feb 22, 2006 (gmt 0)

5+ Year Member

My company is planning to open a branch office in India. If it works and we feel confident about it then we will incorporate our company in India.
- Does it work that way?
- Will it be similar to OUTSOURCING?
- What are the leagal issues opening JUST a branch office in India?
- What steps do I need to take? We have picked up city where we'd like to open this branch. Also found out the operational cost and capital cost.


10:52 am on Feb 24, 2006 (gmt 0)

10+ Year Member

What type of company you are going to start in India?


2:54 pm on Feb 28, 2006 (gmt 0)

10+ Year Member

why it is india? what reason? Cheap IT labour or others?


6:10 pm on Feb 28, 2006 (gmt 0)

5+ Year Member

- We are in consulting Non-IT services.
- We picked India because 50% of employees are Indians moved to US from India.

Does anybody on this board has any idea/experience how to go about it?


2:36 pm on Mar 1, 2006 (gmt 0)

5+ Year Member

Its quite easy. U need to register a company though if you want to transfer money officially in any foreign currency to the branch office, since transfer of money by foreigners to any entity in India is restricted. A company is OK; else you would need to go through channels such as Western Union whereby the money would have to be transferred to an individual. Any money transfer beyond US$ 5000 to an individual has to be reported to the Government (to prevent using India as a conduit for money laundering).

Most equipment is locally available and quite cheap. Communications facilities (broadband) are available in most large cities and very inexpensive.

Establishing a company takes about a month or so and should be done thru a local Chartered Accountant (Financial Advisor). The equity outlay for setting up a company can be as low as US$ 2500/- + fees for the Financial Advisor, etc.



10:02 pm on Mar 1, 2006 (gmt 0)

5+ Year Member

Thanks Ashwin!
Could you please break up $2500?
I found out that I need to register with ROC (registry of Companies) if the office space in not in EPZ. Also with STPI to get export/import exemptions.
Any info that you have on this topic please pass it on..


10:52 am on Mar 9, 2006 (gmt 0)

5+ Year Member

Visit National Association of Software & Service Companies [nasscom.org], the premier trade body and the chamber of commerce of the IT software and services industry in India.

Here you will find all the info u need about the opening the office in India.

[edited by: bill at 12:14 am (utc) on Mar. 10, 2006]
[edit reason] fixed link [/edit]


10:11 pm on Mar 9, 2006 (gmt 0)

5+ Year Member

Thanks RajRaj. I found the www.NASSCOM.org site very useful.
More later guys...

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