Branch vs Subsidiary

Compare the India tax cost of operating through a branch (foreign company) versus an Indian subsidiary, including profit repatriation.

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Inputs

Annual India profit before tax (₹)

Subsidiary rate

Branch effective rate (foreign company)

Dividend repatriated from subsidiary (%)

Dividend WHT (treaty) %

Lower-cost structure

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Comparison

Indicative. A branch (foreign company) is taxed at the higher foreign-company rate but repatriation of branch profits bears no further dividend tax. A subsidiary is taxed at the domestic rate, and dividends to the foreign parent suffer withholding (treaty rate). The better structure depends on rates, repatriation and regulatory/commercial factors. Confirm current rates and treaty positions.