What is specific to UK companies
Most UK groups choose a subsidiary because dividends usually fall within the UK distribution exemption. A branch's profits sit inside the UK company's corporation tax return unless the foreign branch exemption election is made.
How the UK side affects the choice
Most dividends from the Indian subsidiary fall within the UK distribution exemption, so the Indian tax on them is generally a final cost.
Our services
How SU and Company helps
We compare the options against the UK parent's plans and give a written recommendation before any filing.
- Activity and FDI route check
- Tax comparison of subsidiary and branch
- Eligibility check for branch or liaison office approval
- Joint venture shareholding and FEMA pricing points
Questions
Is a branch office a good option for a UK company?
Only for a narrow, approved activity. A branch is taxed at the foreign company rate and exposes the parent directly, so most groups prefer a subsidiary.
General information as at 5 November 2026, not advice for a particular case. Indian and UK rules change often; confirm the current position before acting. UK law points should be confirmed with a UK adviser.