Liaison Office Setup

Liaison Office Setup

A liaison office in India is a non-commercial establishment focused on promoting the interests of the parent company and facilitating business relationships.

Liaison Office Setup: Key Requirements vs. Permissible Activities

Category 

Primary Requirements 

Permissible Activities 

Track Record 

Parent company must have a profitable track record over the last 3 financial years. 

N/A 

Net Worth 

Minimum net worth of USD 50,000 (or equivalent), certified by auditors. 

N/A 

Approval 

Approval from RBI required, with documents like Certificate of Incorporation, audited financials, and activity declaration. 

N/A 

Tax Registration 

Must register with local tax authorities and comply with FEMA regulations. 

N/A 

Commercial Activities 

Cannot engage in commercial or revenue-generating activities. 

N/A 

Market Research 

N/A 

Conduct research to understand the Indian market and evaluate opportunities. 

Promotion 

N/A 

Promote products/services of the parent company (no direct sales). 

Communication 

N/A 

Serve as a communication link between the parent company and Indian stakeholders. 

Support for Trading 

N/A 

Coordinate export/import activities, but cannot directly engage in trading. 

Brand Presence 

N/A 

Establish a presence to build relationships, brand awareness, and visibility. 

Note: A liaison office is not permitted to undertake any commercial activities, earn income, or sign contracts on behalf of the parent company in India

With Bhanushali & Bhanushali, we ensure seamless setup and compliance for your liaison office, enabling effective market representation in India. 

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