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.
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