So, you’re thinking about starting operations in India, and Bangalore is high on your list.
Honestly, that’s not surprising.
Bangalore is where execution happens. Tech teams, operations, support functions, global delivery centres – this is where companies come to actually build and scale. For many foreign businesses, opening a branch office in Bangalore feels like a practical and logical first step.
But here’s the thing, most people don’t realise upfront:
A branch office in India is not just “find an office and start hiring.”
There are rules.
There are approvals.
And yes, there’s paperwork.
The good part?
Once you understand how the process works, it’s actually very 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. Because of this, Indian authorities closely monitor what the branch does and what it does not do.
Everything is governed under the FEMA (Foreign Exchange Management Act), and approvals come through authorised dealer banks under RBI guidelines.
Branch offices are usually allowed to:
- Provide professional or consultancy service
- Support the parent company’s business activities
- Handle imports or exports
- Carry out research or coordination work
What they usually cannot do:
- Manufacturing
- Retail trading directly with Indian consumers
Before approval, authorities also look at:
- Your company’s financial strength
- Your operational track record
This step is important. If a branch office isn’t the right structure for your business, it’s far better to know that before you apply.
Choosing the Right Location in Bangalore
Everyone says they want a “Bangalore office”, but Bangalore isn’t one single market – it’s many.
Some companies choose Whitefield or Outer Ring Road because that’s where large tech parks and talent are concentrated.
Others prefer Electronic City for cost efficiency.
Some go with Indiranagar or central areas for leadership teams and client-facing roles.
A few practical questions to ask yourself:
- Will clients or partners visit your office often?
- How important is access to the airport?
- How much are you comfortable spending on rent?
The “right” location isn’t about popularity. It’s about what works best for your team and operations.
How the Registration Process Actually Works
Here’s the real flow – no drama.
First, your company applies for approval through an Authorised Dealer Bank. You submit incorporation documents, financial statements, and clearly explain what your branch office will do in India.
Once approval comes in, the work isn’t over. Next, you need to:
- Register the branch office with the Registrar of Companies
- Apply for PAN and other tax registrations
- Open an Indian bank account
- Complete local registrations are required to operate smoothly
Each step has its own timeline and documentation requirements. Miss something or do things out of order, and delays are almost guaranteed. This is where planning actually saves time.
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 attract withholding tax
India also has tax treaties with many countries. If structured properly, these can help reduce your overall tax burden.
This is one area where getting the right advice early makes a real difference.
Compliance Doesn’t End After Setup
Many companies think the hard part is over once the office opens. That’s usually when problems begin.
Branch offices are required to:
- File annual returns
- Get accounts audited
- Submit activity reports
- Stay compliant with tax and FEMA regulations
None of this is complicated – but it is mandatory, and it has to be done on time, every year.
How IndusEntry Makes This Easier
At IndusEntry, we work closely with foreign companies entering India. We know where businesses usually get stuck – approvals, structure confusion, tax planning, or ongoing compliance pressure.
We help you:
- Decide whether a branch office is the right structure for you
- Handle approvals and registrations
- Set up tax and compliance correctly from day one
- 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 Bangalore and want to avoid stress or costly mistakes, talk to IndusEntry.
We’ll help you take your first step in India – the right way.