Liaison Office in India
A Liaison Office (LO) is a representative office established by a foreign company in India to act as a communication channel and promote its business interests without engaging in any commercial or trading activities.
Benefits of Forming a Liaison Office
Discover why a Liaison Office is the ideal entry point for foreign companies exploring Indian markets.
Market Exploration
Explore Indian market before making significant investments & analyze trends closely.
Brand Promotion
Promote brand, products, or services without undertaking actual business transactions.
Simpler Compliance
Regulatory and tax compliance requirements are comparatively simpler.
Communication Channel
Acts as communication channel between foreign parent company and Indian businesses.
Strategic Insights
Helps decide whether to establish Branch Office or subsidiary later.
Easy Closure
Closing a Liaison Office is simpler than closing other types of entities.
Basic Requirements for Liaison Office
Essential criteria to establish your Liaison Office in India.
- Applicant must be foreign company or body corporate incorporated outside India
- Must appoint authorized representative in India
- Activities must align with RBI guidelines under FEMA, 1999
- Parent company must have track record of profitability for preceding three years
- Minimum net worth of USD 50,000 certified by chartered accountant
- Operational expenses funded entirely through inward remittances
- Cannot generate revenue or undertake profit-generating activities
- Requires prior approval from Reserve Bank of India (RBI)
More About Liaison Office
Key details about establishment, operations, and compliance for Liaison Offices.
Not a Separate Entity
Operates as extension of foreign parent company, not a separate legal entity.
Non-Revenue Generating
Cannot engage in any commercial or trading activities in India.
Temporary Presence
Role remains limited to acting as communication channel for long-term expansion.
Drawbacks of Liaison Office
Understand the limitations to make an informed decision.
Limited Scope
Operations strictly restricted to representational and non-commercial activities.
No Revenue Generation
Entirely dependent on foreign parent company for funding through inward remittances.
Compliance Burden
Must adhere to multiple regulatory requirements despite non-commercial nature.
What You Get from Register Your Startup
Comprehensive support for your Liaison Office setup in India.
Digital Signature
One Digital Signature for Authorized Signatory.
Certificates & Approvals
PAN, TAN, RBI approval letter, and Certificate of Registration.
Bank Account Setup
Bank account opening documents and support.
Step-by-Step Process
Complete process for establishing a Liaison Office in India.
1. Application Submission to RBI
Submit Form FNC to designated Authorized Dealer Bank along with prescribed documents.
2. Approval by AD Bank
AD Bank reviews application and grants permission for establishment.
3. Registration with RoC
Register with Ministry of Corporate Affairs and obtain Certificate of Registration.
4. PAN & TAN Application
Apply for Permanent Account Number and Tax Deduction Account Number.
5. Bank Account Setup
Open bank account for managing inward remittances and operational expenses.
Frequently Asked Questions
Common queries about Liaison Office registration in India.
Establish Your Liaison Office in India Today
From RBI approval to full compliance, we guide you every step of the way.