REGISTRATION

Opening of Laison Office in India

- Suitable for establishing communication channel between parent company in abroad and Indian party
- Get your liaison office in India
- Work handled by professionals
- Hassle free process

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What is Liaison Office in India?

inner choose imgIndia is considered as a ever growing market for the foreign investments, with the latest policies and business points in India, more and more companies from abroad are willing to expand to take a chunk of Indian market to make profit. When a foreign company opens an office in India they would set up an office that would indulge in the communication part between the Headquarters of the actual company and the indian entities of the same company.

A liaison office is considered as an representative office for the office inside india. The main rule here is that there must not be any type of business involved that is directly related to selling or manufacturing of products by setting up an liaison office.

There must be no income generated via setting up an liaison office, whereas its run in costs are handled by the parent company via the revenue it is generating onshore or offshore. It basically acts as an information collection and spreading zone for the business operations.

Documentation for Opening liaison office

Board Resolution

Covering letter

Draft prescribed Form Part 1

Draft prescribed Form part 2 (Declaration)

LO Application

Foreign direct investment eligibility and Source of Fund

RBI format as per KYC

3 years of audited financial statements

Copy of Certificate of Incorporation (COI)

Copy of Memorandum of Association (MOA)

Articles of Association (AOA)

List of Shareholders

List of Directors

OPC Compliance

Process involved in registering a liaison office

Unique Features of liaison office

Branch Office Registration

Types of Establishing Liaison office.

  1. RBI method :
    – In terms of the automatic route for the investment to happen there are no prior steps to be taken by the foreign resident, they can just straight up invest in the company but, after the equity is done for it to be valid the filings has to be done within the 30 days of investment by following the procedure of Reserve Bank of India (RBI).
    – Offices established by this method can open liaison office via direct RBI approach.
  2. Governmental Route :
    – In most cases automatic rules can be applied but for certain cases the involvement of the Foreign Direct Investment (FDI) rules involvement is required. Here the rules has to followed and only after which the equity can be bought.
    – For companies established via this route, then a direct permit method would be needed for establishing the Liaison Office.

Compliances of liaison office annually

FAQ

Frequently Asked Questions

When a foreign company opens an office in India they would set up an office that would indulge in the communication part between the Headquarters of the actual company and the indian entities of the same company.

No direct sales or dealing involved with the generation of revenue. A Liaison office has minimal compliance when compared to other type of offices. Can be used for targeting information for business strategies. Can act as a point of communication between the branches. Should not indulge in direct interaction for making a profit model with the client via a liaison office.

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