Overview
A Liaison Office is a place of business in India established by a foreign company to act as a communication channel between the head office and Indian parties. It is suitable for foreign companies that want to explore the Indian market, build relationships with customers and suppliers, and understand the business environment without undertaking commercial activities. Liaison Offices are governed by the Foreign Exchange Management Act and regulations issued by the Reserve Bank of India.
The primary role of a Liaison Office is to represent the foreign parent company in India. Permitted activities include promoting exports and imports, facilitating technical or financial collaborations, acting as a communication link between the parent company and Indian companies, and collecting market information. A Liaison Office is strictly prohibited from undertaking any income generating or commercial activity in India.
To establish a Liaison Office, prior approval from the Reserve Bank of India is mandatory. The foreign company must meet the prescribed financial eligibility criteria, including a profit-making track record and minimum net worth requirements. The Liaison Office must be funded entirely through inward remittances from the parent company and cannot earn any income in India.
BizGlobal Professional Services provides complete support for Liaison Office registration in India. From evaluating eligibility and preparing RBI applications to coordinating with authorised dealer banks and managing post registration compliance, BizGlobal ensures that foreign companies can set up their Liaison Office smoothly and in full compliance with Indian regulations.
