Liaison office registration in India
A liaison office lets a foreign company represent itself in India, promote its products and act as a communication channel with Indian businesses. It cannot earn income in India, and its expenses must be met from remittances by the parent. Approval is obtained from RBI through an authorised dealer bank.
What this covers
- Eligibility review under FEMA regulations
- Application in Form FNC through the authorised dealer bank
- Registration with the Registrar of Companies
- PAN and TAN for the office
- Annual Activity Certificate and Form 49C filings
- Closure of the liaison office when no longer needed
How the work is done
- Check the parent's eligibility and net worth
- File the application through the AD bank
- Register with ROC once approval is received
- Set up accounts and annual reporting
Documents usually needed
- Parent's certificate of incorporation and latest audited financials
- Banker's report from the parent's home-country bank
- Board resolution and power of attorney
Frequently asked questions
Can a liaison office earn revenue in India?
No. A liaison office can only carry out liaison activities. It cannot trade, sign contracts or earn income.
How long is liaison office approval valid?
Approval is usually given for three years and can be extended.
What annual filing is required?
An Annual Activity Certificate from a chartered accountant, filed with the AD bank, and the annual filings with ROC and the income tax department.