HomeSetting of Liaison office/ Branch Office/ Project Office

Setting of Liaison office/ Branch Office/ Project Office

  • Setting up a Liaison Office in India

Setting of Liaison office/ Branch Office/ Project Office

Foreign companies planning to set up their business operations in India need to start a liason office. The main purpose of starting a liason office is to explore possible business opportunities in India by gathering relevant business information.

What Is Setting of Liaison office/ Branch Office/ Project Office

Foreign companies planning to set up their business operations in India need to start a liason office. The main purpose of starting a liason office is to explore possible business opportunities in India by gathering relevant business information.This helps the companies to develop a business strategy to tap the existing business potential in India. A liason office also acts as a marketing channel to provide business information about the parent company and their products to the prospective clientele in India.

Simple Steps to Opening a Liaison Office in India Registration!

Application entity through a designated ad category – I bank for setup a liaison office in India

The application for establishing Liaison office in India should be forwarded by the foreign entity through a designated AD Category – I bank to the Chief General Manager-in-Charge, Reserve Bank of India, Foreign Exchange Department, Foreign Investment Division, Central Office, Fort, Mumbai-400 001, along with the prescribed documents including

Procedure after getting the RBI licence, application submitted to with registrar of companies, Delhi

Every Liaison office registered with RBI shall get itself registered with the Ministry of Corporate Affairs; the foreign company is also required to obtain a Certificate of establishment of place of business in India from the Registrar of Companies (ROC. On such registration a CIN i.e. Corporate Identity Number is allotted by the Registrar of Companies. Which required following document including

  • FAQS

Have Questions? Find Answers Here

What are the features of Liaison office of Foreign Company in India?

Features of Liaison Office

  • The name of Indian liaison office shall be same as parent company.
  • The governing body for the Liaison office License is Reserve Bank of India.
  • It is suitable for foreign Companies looking to setup a temporary office in India to liaison its existing business with Indian clients.
  • The Liaison office does not have any ownership, it is just extension of the exiting company in the foreign country.
  • All the expenses of the Liaison office are met by the head office, hence the funds shall be received from head office account only.
  • The License for the Liaison office is given for three years and shall be renewed every 3 years.
What are the business licenses may require / applicable on a Liaison office of Foreign Company in India.

Business Licenses Applicable To Liaison Office

  • Permanent Account Number (PAN)
  • Tax Deduction Number – Tan Number
  • Shop & Establishment Registration
What are the Compliances for Liaison office of a Foreign Company in India.

Compliances to be Carried Out by Liaison Office of a Foreign Company in India

After Establishment Of By Liaison Office

  • A Liaison office shall submit a report containing information in a prescribed form within five working days of the Liaison Office becoming functional to the Director General of Police (DGP) of the state concerned in which Liaison office has established its office; if there are more than one office of such a foreign entity, in such cases to each of the DGP concerned of the state where it has established office in India;
  • A copy of report thus filed as above shall also be filed with AD by the Liaison office concerned.

Annual Compliances

  • Maintenance of Books of Account for the activity carryout in India.
  • Getting Annual Accounts audited for the activity carryout in India.
  • File Annual Activity Certificates from the Auditors to be submitted to the Reserve Bank of India,
  • Audited Financial Statements including Receipts and Payments A/C shall be filed with the Directorate of Income Tax.
  • Filling of Annual Return Compliances and Balance sheet with the Registrar of Companies.
  • Intimating any change in constitution of Foreign Company to Reserve Bank of India & ROC
  • Intimating any change in Directors of Foreign Company to Reserve Bank of India & ROC
  • Intimating each and every change in the Liaison office to Reserve Bank of India & ROC
  • No additional place of business can be started unless approval is taken from Reserve Bank of India.

Stil have any questions?

Learn More
TESTIMONIAL

What our users are saying

So far good experience. Still need to complete the full compliance before due date by Corporate Avenue.

OCTANE CAPITAL PRIVATE LIMITED, Anjali bhatia

Experience was awesome. Thanks for all the help and coordination. Parth was really helpful in the journey.

Dakshta trust, Daksh Midha

Would definitely recommend this website to other people and would also use it myself in future as well if need be

From the Fields Pvt Ltd, jasbeer Singh