Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:
i. Export / Import of goods
ii. Rendering professional or consultancy services
iii. Carrying out research work, in areas in which the parent company is engaged
iv. Promoting technical or financial collaborations between Indian companies and parent or overseas group company
v. Representing the parent company in India and acting as buying / selling agent in India
vi. Rendering services in information technology and development of software in India
vii. Rendering technical support to the products supplied by parent/group companies
viii. Foreign airline / shipping company.
Profits earned by the Branch Offices are freely remittable from India, subject to payment of applicable taxes.
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