Best Business Structures in India for Russian Companies and Investors: Branch, Liaison and Project Offices

• Company formation / Compliances
• ||
• August 20, 2026

India and Russia have shared a strong economic and diplomatic partnership for decades, and with bilateral trade now at record highs, more Russian companies are looking to India than ever before. Not every Russian business wants a full Indian company, though. Sometimes you just need a presence in India — to explore the market, serve a client, conduct research, project — without setting up a subsidiary. For that, India offers three office structures: a Branch Office, a Liaison Office and a Project Office.

These are very different from the company routes — the private limited company and LLP, already cover in our guide for foreign investors.

An office is an extension of your Russian company, not a separate Indian entity. This guide explains each one in plain English, compares them side by side, and helps you decide which fits your plans.

Why would a Russian company choose an office instead of a company in India?

A wholly owned subsidiary is the right choice if you want to build a full, independent business in India. But an office suits a narrower goal — a limited, defined purpose where a whole company would be too much.

An office keeps you legally part of your Russian parent, which means simpler ownership but also that the parent carries the liability. It is ideal when you want to test the market, represent your brand, trade in a focused way, or deliver a single contract — and then review your options from there.

What is a branch office in India for a Russian company, and what can it do?

A Branch Office is the most active of the three. It lets your Russian company actually trade in India — while remaining one legal entity with the parent. A branch can import and export, offer consultancy and professional or technical services, carry out research, and act as a buying or selling agent.

The key limits: a branch can only do what your parent company already does, it cannot manufacture directly (though it can subcontract manufacturing), and it needs Reserve Bank of India approval. Because a branch earns income, it is treated as a Permanent Establishment and taxed in India — but its after-tax profits can be sent back to Russia. It suits established Russian firms that want to trade without forming a subsidiary.

What is a liaison office in India for a Russian company?

A Liaison Office — also called a representative office — is the lightest option. Its job is simply to be a communication bridge between your Russian head office and the Indian market. It can promote your brand, build contacts, gather market information, and explore opportunities.

What it cannot do is earn any income. A liaison office runs entirely on money remitted from Russia and may not invoice, trade or carry out commercial activity of any kind. Because it earns nothing, it pays no income tax — though it must still file returns and an annual certificate. It is the perfect low-risk way for a Russian business to study the Indian market before committing.

What is a project office in India for a Russian company?

A Project Office is set up for one specific job — typically a construction, infrastructure, engineering or turnkey contract. It exists only for the life of that project and closes once the work is done.

The RBI gives general permission for a project office as long as the project is funded by inward remittance from abroad or by a bilateral or multilateral agency, or has the backing of an Indian bank or financial institution. The office can only work on the approved project and needs to officially close the project after completion. It is the natural choice for a Russian firm that has won a defined Indian contract.

Branch vs Liaison vs Project Office In India: A Comparison For Russian Investors

Here is how the three offices compare at a glance:

How does a Russian company get RBI approval for an office?

All three offices are set up under India’s foreign exchange law (FEMA), and permission comes from the Reserve Bank of India. You apply using Form FNC, submitted through an Authorised Dealer (AD Category-I) bank. There are two routes:

• The automatic (AD bank) route applies where your main business is in a sector that allows 100% foreign investment automatically. The bank approves it on the RBI’s behalf, which is faster.
• The government (RBI) route applies where your sector is restricted, or for certain other cases.

Here is the good news for Russian investors: because Russia does not share a land border with India, the land-border approval curbs do not apply to you, and most sectors are open on the automatic route. Once approved, the office is registered with the Registrar of Companies in Form FC-1 within 30 days. Our company formation team can manage the whole filing for you.

What documents does a Russian company need?

Because the applicant is your Russian parent, the paperwork focuses on proving who you are and that you are financially sound:

• Certificate of incorporation and charter documents of the Russian company
• Audited accounts showing the required profit track record and net worth
• A board resolution approving the Indian office and naming your authorised representative
• A letter of comfort from the parent, and your banker’s report

Two steps Russian applicants must plan for: documents must be notarised and apostilled (Russia and India are both in the Hague Apostille Convention, so no embassy legalisation is needed), and any document in Russian needs a certified English translation. Poor translations are a common reason for delay, so arrange them early.

What taxes and compliance apply to a Russian company’s office in India?

A Branch Office and a Project Office earn income, so they are taxed as a foreign company. The base rate was cut from 40% to 35% by the Finance (No. 2) Act, 2024 (effective from AY 2025-26), plus surcharge and a 4% cess. A Liaison Office earns nothing and so pays no income tax, but still files returns.

Every office also files an Annual Activity Certificate (AAC) from a Chartered Accountant by 30 September each year, confirming it has stayed within its approved activities, along with returns to the Registrar of Companies and the Income Tax Department. Staying current on these keeps your office in good standing and protects future remittances to Russia.

All the government related filing forms mentioned in the blog are general and required in almost genral cases, there may be specidign cases cna include too, which requrie other complaicnes too, for this  you should definetly consult a professional for this

Which office should a Russian business in India choose?

It comes down to what you actually want to do:

• Choose a Branch Office if you want to trade, import or export, or offer services in India while staying one entity with your Russian parent.
• Choose a Liaison Office if you only want to explore the market, build relationships and promote your brand, with no trading yet.
• Choose a Project Office if you have won a specific Indian contract to deliver.

And if your plans are bigger — a full, independent business that can raise money and scale — a company is usually the better route. Our private limited company guide walks through that option.

Conclusion

For a Russian business, India’s office structures offer a flexible middle path — a real presence without the commitment of a full company. A Branch Office trades, a Liaison Office represents, and a Project Office delivers. Match the office to your purpose, prepare your Russian documents properly, and get RBI approval through the right route, and setting up in India is refreshingly straightforward.

Not sure which office fits your plans? Contact Mercurius today for a free consultation on setting up in India.

How can Mercurius help Russian businesses in India?

At Mercurius, we help Russian companies choose and set up the right structure in India. We advise whether a Branch, Liaison or Project Office — or a full company — suits your goals, prepare and file your Form FNC and RBI application, arrange the certified translations and apostilles your Russian documents need, and complete your ROC registration.

Afterwards, we handle your Annual Activity Certificate, accounting, audit, tax and payroll — so your Indian office stays compliant while you focus on the business.

Frequently Asked Questions

Can a Russian company trade in India through an office? Yes, through a Branch Office or a Project Office. A Liaison Office cannot trade or earn income — it is for representation only.

Do offices need RBI approval? Yes. All three are set up under FEMA with RBI permission, applied for in Form FNC through an Authorised Dealer bank. Most Russian firms qualify for the faster automatic route.

How is a Branch Office taxed in India? As a foreign company, at a 35% base rate (reduced from 40% in 2024) plus surcharge and 4% cess. After-tax profits can be repatriated to Russia.

Which office is best for testing the Indian market? A Liaison Office. It lets you research, promote and build contacts at low risk, funded from Russia, before you commit to trading.