The foreign company which wants to do water testing in India and do not want to open full-fledged business entity can opt for Liaison Office Registration in India. Liaison office registration can be done in either of the 2 routes i.e. automatic approval route or Government approval route.
Under automatic approval route, Liaison office India can be opened for doing activities in those sectors where 100% foreign Direct Investments i.e. FDI are permissible by RBI.
In case, Liaison office registration in India is required for doing activities in those sectors where 100 % FDI is not allowed under the automatic route, or when Liaison office registration is required by NGO and government bodies, in those cases, government approval route needs to be followed where approval has to be taken from Government of India, Ministry of Finance.
As per exchange regulations, the application for Liaison office registration in India is submitted through AD Banker to the RBI.
List of documents required for Forming Liaison Office in India are-:
- Duly filled Triplicate copies of Form FNC – 1
- Copy of Letter from the Parent company to RBI.
- Copy of Authority letter from the parent company in favor of Local Representative.
- Copy of Authority Letter / Board Resolution from parent company for liaison office registration in India.
- Copy of letter of comfort from the parent company showing its intent to support the operation in India.
- Duplicate copies of Certificate of Incorporation, Memorandum & Articles of association (Charter Document) of the parent company duly attested by the Indian embassy or notary public in the country of registration. In case documents are not in English, English Translation shall also be notarized and apostiled.
- Copy of Certificate of Incorporation duly Notarized and Certified by Indian Consulate. In case documents are not in English, English Translation shall also be notarized and apostiled.
- Copies of last three years audited Balance sheet and annual accounts of parent company duly Translated notarized & Certified by Indian Consulate & Directors
- Details of authorized person in home country like Name, Address, email ID and telephone number.
- Bank account number and other details of Bankers of the parent company.
- What will be expected funding level for operations in India?
- Details of proposed registered office address of local office, number of proposed employees including number of foreign employees and address of the head of the Local office, if decided
- Details of Activity carried out in Home Country by the parent company in brief about the product and services of company in Brief.
- Report from the parent company banker showing the number of years the applicant has had banking relations with that bank.
- Latest ID Proof of all the Directors – Certified by Consulate and Banker in Home Country
- Latest Address Proof of all of Directors – Certified by Consulate and Banker in Home Country
- Shareholding pattern and Structure of the parent company.
- Copy of board Resolution relating to Opening up Bank Account with the Banker
- Duly filed and Signed application form for opening bank account in Indian Bank
Intimation to ROC in Form FC-1 along with following docs within 30 days from the date of RBI approval:
Following documents are required:
- Copy of certificate of incorporation/ registration duly Translated and Notarized and apostiled.
- Copy of Charter, statutes or memorandum and articles of association or other Instrument constituting or defining the constitution of the company duly Translated and Notarized and apostiled.
- Complete list showing directors and secretary of the foreign company
- Copy of Board resolution or Power of Attorney in favor of authorized representative
- Copy of approval letter from RBI for opening liaison office India.