A company is required to hold a Board Meeting and pass a necessary resolution for opening a new Branch Office and keep the resolution on record. It is a mandatory requirement of the Companies Act to pass the necessary resolution.
Sample : Board Resolution – Opening a Branch Office
A foreign company can freely operate in India by registering a branch by obtaining approval of the reserve bank of India through AD category 1 Banker and further registration of the foreign company with the ROC. Such a branch office is treated as a foreign entity and is subject to higher Income Tax @ 40%.
A branch office is a location, other than the main office, where a business is conducted. Most branch offices consist of smaller divisions of different aspects of the company such as human resources, marketing, and accounting.
A branch office is an outlet of a company or, more generally, an organization that – unlike a subsidiary – does not constitute a separate legal entity, while being physically separated from the organization’s main office.