§ 1
Living with a branch approval
The AD bank that approved the branch is its point of contact with the RBI. The Annual Activity Certificate, signed by a Chartered Accountant, goes to that bank with the audited accounts each year. Any new activity, change of address within the city, or additional office needs to be checked against the approval; some changes need the bank's prior consent.
Branch profits may be remitted to the head office after tax, supported by audited accounts, a tax payment certificate and an auditor's certificate. Acquiring immovable property in India is permitted for the branch's own activities, subject to reporting, and not for investment.
§ 2
The law that applies
| FEMA Regulations, 2016 and RBI Master Direction | Ongoing conditions, AAC, changes, remittances and closure. |
|---|---|
| FEMA (Acquisition and Transfer of Immovable Property in India) Regulations | Property acquired by a branch office. |
§ 3
Issues and how we solve them
The problems that most often hold up or complicate this work, and how we deal with each.
Issue 1
The branch has started an activity not in its approval.
Our approach
We assess whether it falls within the permitted list; if not, we advise stopping it or seeking approval, and reflect the position accurately in the AAC.
Issue 2
Profit remittance is delayed by documentation.
Our approach
We prepare the remittance pack (audited accounts, tax certificates, auditor's certificate and Form 15CA/15CB equivalents) as soon as the return is filed.
§ 4
Process and timeline
- 1
Annual
AnnuallyAnnual Activity Certificate with audited accounts.
Filing: AAC by 30 September
- 2
Event-based
As neededChanges, additional offices, property, remittances.
- 3
Closure
On exitClosure application, auditor's certificate and tax clearance.
§ 5
Our scope of work
Included
- Annual Activity Certificate
- AD bank liaison
- Profit remittance documentation
- Change and property reporting
- Closure
§ 6
Questions
What happens if the Annual Activity Certificate is not filed?
The AD bank and RBI may treat it as a contravention, which can lead to compounding and, in serious cases, review of the approval.
Can a branch office buy property in India?
It can acquire property needed for its permitted activities, subject to FEMA conditions and reporting.
Prepared by CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375, SU and Company · Last reviewed 4 November 2026. General information only, based on the law as it stood on that date; it is not advice for any particular case.