So, you’re thinking about starting operations in India, and Mumbai is on top of your list.
Honestly, that’s not surprising.
Mumbai is where decisions happen. Banks, investors, large corporates, consultants all present here. For many foreign companies, opening a branch office in Mumbai feels like the safest first step.
But here’s the thing most people don’t tell you upfront:
A branch office in India is not just “rent an office and start working.”
There are rules. There are approvals. And yes, there’s paperwork.
The good part?
Once you understand the process, it’s actually quite manageable. This guide walks you through it in plain language – no legal jargon, no overcomplication – just what really matters.
Legal Basics You Should Know First
Let’s keep this simple.
A branch office in India is not a separate company. It is treated as an extension of the foreign parent company. As a result, the Indian government closely monitors its actions and limitations.
Everything is governed under the FEMA (Foreign Exchange Management Act), and approvals come through the RBI or authorised banks.
Branch offices are usually allowed to:
- Provide professional or consultancy services
- Support the parent company’s business
- Handle imports or exports
- Do research or coordination work
What they usually cannot do:
- Manufacturing
- Retail trading directly with Indian consumers
Before approval, authorities also check:
- Your company’s financial strength
- Your operational track record
This step is important because if a branch office isn’t the right structure for you, it’s better to know that before applying.
Choosing the Right Location in Mumbai
Everyone wants a “Mumbai office”, but Mumbai is not one place – it’s many.
Some companies prefer BKC or Nariman Point because clients are nearby.
Others choose Andheri, Powai, or Navi Mumbai because rentals are more reasonable and talent is easily available.
A few practical questions to ask:
- Will clients visit your office often?
- Do you need quick airport access?
- How much are you comfortable spending on rent?
The “best” location is the one that fits your business, not just your brand image.
How the Registration Process Actually Works
Here’s the real flow – no drama.
First, your company applies for permission through an Authorised Dealer Bank. You submit your incorporation documents, financials, and explain what you plan to do in India.
Once approval comes in:
- You register the branch office with the Registrar of Companies
- You apply for PAN and other tax registrations
- You open an Indian bank account
- You complete the local registrations needed to operate smoothly
Each step has timelines and document requirements. Miss something, and delays happen – which is why planning matters.
Taxes: What You Should Be Prepared For
Yes, branch offices are taxed in India – but only on income earned here.
Typically:
- Corporate tax applies on Indian income
- GST applies if you’re providing taxable services
- Certain payments involve withholding tax
India also has tax treaties with many countries, which can help reduce your tax burden if structured correctly.
This is where good advice saves real money.
Compliance Doesn’t End After Setup
Many companies think the job is done once the office opens. That’s where problems usually start.
Branch offices need to:
- File annual returns
- Get accounts audited
- Submit activity reports
- Stay compliant with tax and FEMA rules
It’s not complicated, but it has to be done on time – every year.
How IndusEntry Makes This Easier
At IndusEntry, we work with foreign companies entering India. We know where businesses usually get stuck – approvals, structure confusion, tax planning, or compliance overload.
We help you:
- Decide if a branch office is right for you
- Handle approvals and registrations
- Set up tax and compliance the right way
- Stay compliant even after operations begin
No unnecessary jargon. No over-engineering. Just clear guidance and steady support.
If you’re planning to set up a branch office in Mumbai and want to do it without stress or costly mistakes, talk to IndusEntry.
We’ll help you take your first step in India – the right way.