Liaison Office Registration
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Liaison Office is set up to represent the parent company in India. It can’t undertake any business activity in India and cannot earn any income in India. Liaison Office is regulated by RBI Regulations.
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Introduction
Liaison Office Registration
A liaison office or a representative office works as a communication channel between the parent company settled abroad and their parties in India. Foreign companies take liaison office registration in India to explore and support business prospects in India.
Such an office acts as a communication bridge. It promotes import and export from/to India, promotion of technical and financial participation of foreign parents/group company, conducting market research, providing feedback, etc.
Permitted Activities of Liaison Office in India;
- Promotion of import/export relationship between countries
- Form a financial and technical collaboration between Indian and overseas companies
- Represent the foreign parent company in India
Benefits
Why Should You Register Your Business as a Liaison Office Registration?
One name one identity across the globe
Promotion and facilitation
of the parent company business activities
Establishment of a better communication
channel between head office and parties in India
Effective Study of Indian market
Process
Liaison Office Registration In Easy Steps
Document Checklist
Documents Required for Liaison Office Registration
Letter of Comfort
Duly filled Form FNC
Copy Of Certificate Of Registration
Audited Balance sheet of the applicant company
Power of Attorney in favour of signatory of Form FNC
Complete details of Directors
Faq
Frequently Asked Questions (FAQ)
The establishment of liaison office can establish only after approval of from the Department of Banking Regulation (DBR), RBI.
It is generally for three years but in the case of Non-Banking Finance Companies (NBFCs) and those entities engaged in construction and development sectors, for whom the validity period is two years only.
Liaison office needs to obtain prior permission of the RBI through its AD Category – I bank justifying the reason for the additional account.
The RBI is the concerned authority to approve the foundation of a liaison office in India.
To set up a liaison office, first, check the qualification of being monetarily solid in terms of the network not exactly USD 50,000 or its equivalent. At that point, call the Cognizant Advisors agent to talk about documentation and stepwise procedure. Rest will be taken into consideration by the qualified CA, CS, and Advocates.
Every year, the branch office must document an Annual Activity Certificate (AAC), arranged by a chartered accountant, to the RBI confirming the workplace's exercises are within its sanction. LIKEWISE, an AAC ought to be recorded with the Directorate General of Income Tax within 60 days of the end of the fiscal year.
The validity of a Liaison Office is for three years (two years for Non-Banking Finance Companies (NBFCs) and entities engaged in construction and development sectors) and may be renewed after every 3 years by AD Category I Bank with the prior approval from RBI for a further period of three years.
An individual seeking interest to start their business operations in India as a representative of its already existing foreign company without creating a subsidiary company can open a Liaison Office in India by approaching AD Category –I Bank along with the application in Form FNC and requisite documents.
