Registration of branch office of private limited

Procedure to open a branch office of a company
Approval from Board of directors
To open a branch office, a company has to get approval from its directors. Hence a company must call a board meeting on a pre-decided date by giving notice to all the directors. Board of directors must pass a resolution to open a branch office. And BOD must authorize a director to carry on all the related activities. And then a company can hire/own a place in any city or state in India as per the resolution.

Shop & Establishment registration
The registration of a branch office is not required under the MCA but it must be registered with local authorities to carry on business activities legally. Hence, a branch can be registered under shop & establishment act. It must be registered with the local municipality where the branch office is situated.

Other registration
A company must update the information relating to starting a branch office with other ministries where it is registered. It can be GST registration, IEC registration, industrial licenses, professional tax, etc. It is necessary to avoid the consequences of not complying.

Starting a business
After completion of all legal formalities, business activities at a branch office can be carried out. A company can only carry on such business activities at a branch office which is mentioned in the main object in the MOA.

Agree

To open a branch office of a Private Limited Company, you mainly need to complete two sets of formalities—internal company compliances, and GST registration requirements:

1. Internal Company Formalities   

• Board Resolution approving the opening of the branch office

• Lease/rent agreement or ownership proof of the new premises

• Utility bill (electricity/water) as address proof

• Update place of business details in company records
  
  

2. GST Registration for Branch Office 

• Apply for Additional Place of Business (if same state) or New GST Registration (if in another state)

• Submit: Board resolution, rent agreement, utility bill, company PAN, authorisation letter, and authorised signatory details

• After approval, update the branch address in invoices and GST portal

In short, board approval + address proofs + GST addition/registration are the key formalities for opening a branch office. To get help in opening a branch office in India, reach out to a specialised India entry service provider like Setindiabiz.