Register a Liaison Office in India
A Liaison office in India is one of the ways by which a foreign Company may set up a business presence in India;
The company cannot have any revenue for the Indian Liaison office; It has to meet all its expenses of Indian office through remittances from the Head office.
It is not allowed to undertake any commercial activity in India.
General Features of Liaison Office
- The name of Indian liaison office shall be same as a parent company.
- The governing body for the Liaison Office License is Reserve Bank of India
- The License for the Liaison office in India is given for 3 years and shall be renewed after every 3 years.
Activities Allowed to Liaison Office in India
- Representing in India the parent company/group companies.
- Promoting export / import from / to India.
- Promoting technical/financial collaborations between parent/group companies and companies in India.
- Acting as a communication channel between the parent company and Indian companies.
Condition For Setting Up Liaison Office
- Company shall have a profitable track record during immediately preceding three years in the home country.
- The Net Worth, i.e., total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet shall be not less than of equal to USD 50000/
Time Involved in the Process
- Approx. 50 to 60 working days
Routes of Opening Lision Office in India
There are 2 routes to establish a Liaison Office in India:
- Reserve Bank Route: Where 100 per cent Foreign Direct Investment (FDI) is permissible under the automatic route.
- Government Route (Ministry of Finance):
- Where principal business of the foreign entity falls under the sectors where 100 per cent FDI is not permissible under the automatic route, or
- Application from NGO / Non-Profit Organizations / Government Bodies / Departments
As per the RBI Requirement, the request for the branch office and Liaison office is submitted through the Authorized dealer to the RBI:
- Form FNC – 1 – Three copies
- Letter from the principal officer of the Parent company to RBI.
- Letter of authority from the parent company for Local Representative.
- Letter of authority/ Resolution from parent company for setting up a liaison office in India.
- Comfort letter from the parent company intending to support the operation in India.
- Two copies of the English version of the 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.
- Certification of Incorporation – Translated & Duly Notarised and Certified by Indian Consulate
- The Latest audited Balance sheet and annual accounts of parent company duly Translated notarized for past Three years. & Certified by Indian Consulate & Directors
- Name, Address, email ID and telephone number of the authorized person in Home Country.
- Details of Bankers of the Organization the Country of Origin along with the bank account number
- The expected funding level for operations in India.
- Details Relating to address of the local proposed office, number of persons likely to be employed, number of Foreigners among such employees and address of the head of the Local office, if decided
- Details of Activity carried out in Home Country by the applicant organization in brief about the product and services of a company in Brief.
- Bankers’ Report from the applicant’s banker in the host country/country of registration showing the number of years the applicant has had banking relations with that bank.
- Latest Proof of identity of all the Directors – Certified by Consulate and Banker in Home Country
- Latest Proof of address all of the Directors – Certified by Consulate and Banker in Home Country
- Structure of the Organization w.r.t Shareholding Pattern
- Resolution for Opening up Bank Account with the Banker
- Duly Signed Bank Account Opening Form for Indian Bank
Intimation to ROC in FORM FC-1 along with following docs:
- Translated and Notarized copy of the certificate of incorporation/ registration.
- Translated and Notarized copy Charter, statutes or memorandum and articles of association or other Instrument constituting or defining the constitution of the company.
- List of directors and secretary of the foreign company
- POA /Board Resolution in favour of authorized representative
- RBI approval letter.
Other Business Licenses Applicable To Liaison Office
- Pan Number
- Tan Number
- Shop & Establishment Registration
- Maintenance of Books of Account
- Getting Annual Accounts audited
- Filing of Annual Activity Certificate with RBI
- Filing of Annual Return and Balance sheet with Registrar of Companies on or before 30th September of each financial year.
- Intimating any change in constitution of Foreign Company to RBI & ROC
- Intimating any change in Directors of Foreign Company to RBI & ROC
- Intimating each and every modification of the Liaison office to RBI & ROC