Liaison Office Registration

 

A foreign enterprise looking to open a Representative / Market Office in India can setup a Liaison Office in India. A Liaison office is not permitted to directly undertaken any business activity in India but is a medium between the Head Office and the Indian Clients. A major benefit of setting up a Liaison Office is that it is not subject to any taxation in India.

 

Procedure for Setting up Liaison Office

 

Permission to set up a liaison office is granted by the Reserve Bank of India. Permissions are normally granted for a period of three years and can be extended by further request.

A liaison office is not permitted to generate revenue in India.

 

Rights, Duties and Activities Allowed for a Liaison Office in India

 

Provided below briefly are the activities permitted and features of a Liaison Office in India.

  • A liaison office cannot import goods of its own nor can it carry on any business of its own.
  • A liaison office cannot raise any invoices on behalf of the parent company. 
  • All sale proceeds generated by the efforts of the liaison office must be directly paid to the foreign parent company by means of proper banking channels or negotiable instruments such as cheques (checks) and demand drafts. 
  • A liaison office cannot also charge any commission from Indian customers for providing liaison services.
  • All expenses of a liaison office must be compulsorily met only out of inward remittances into a designated bank account opened in India by the liaison office for the specific purpose.

We help our multinational clients in smooth setup and operation of Indian Liaison Office in India.