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LO

Liaison office

Approval: RBI approval via AD bank (Form FNC) → FC-1 · valid 3 years

Represents the parent for liaison, promotion and research only. It cannot earn income in India; all costs come from the parent. Requires three years of profits and net worth of USD 50,000+. Initial approval is three years, extendable by three.

Can and can't do

AllowedOfficial

Representing the parent and group

A channel between Indian customers and the parent.

Source: rbi.org.in · checked
AllowedOfficial

Promoting trade and collaboration

Promotion only; contracts and revenue stay with the parent.

Source: rbi.org.in · checked
AllowedOfficial

Market research and partner search

Common before setting up a company.

Source: india-briefing.com · checked
ConditionalOfficial

Operating beyond three years

AD bank extends by three years if certificates are filed; not for construction/development or NBFCs.

Source: rbi.org.in · checked
Not allowedOfficial

Earning income in India

No income of any kind in India.

Source: rbi.org.in · checked
Not allowedOfficial

Funding from Indian sources

Only inward remittances from the parent.

Source: rbi.org.in · checked

RBI/MCA steps & deadlines

AD bank due diligence, Form FNC
Source: globallawexperts.com ·
AD bank
RBI approval and UIN
Source: globallawexperts.com ·
RBI
FC-1 registration
Source: setindiabiz.com ·
MCA
Report to state police
Source: rbi.org.in · checked
State police
Annual activity certificate to AD bank and tax
Source: globallawexperts.com ·
AD bank · tax

Documents

  • Form FNC, parent's incorporation and articles (apostilled)
  • Three years' audited accounts (profit, net worth USD 50,000+)
  • Letter of Comfort if below criteria
  • Board resolution, POA

Tax

File a nil tax return and annual activity certificate every year. Going beyond permitted activities can create a permanent establishment and tax exposure.

Source: globallawexperts.com ·

Costs

FC-1 fee₹6,000Official Source: setindiabiz.com ·
Running costsFully funded by the parentOfficial Source: rbi.org.in · checked
Professional feesExample: quoted for RBI application, FC-1 and annual AACExample

Timeline

End to endTypically 6–8 weeks, up to 10–20Official Source: globallawexperts.com ·
Validity3 years + 3-year extensionOfficial Source: rbi.org.in · checked
PROPERTY

Liaison premises via Adullam Property

Liaison offices can only lease, not buy. Check office rents by city.

Open Adullam Property →

Recent cases

Reported cases plus illustrative examples within real ranges; examples are labelled.

· DealsiteOfficial

KDB's board approved a Mumbai office to support Korean SMEs in India, targeting the first half of next year.

Read source →
Example

Illustrative: an LO while finding a distributor, then a company.

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Liaison Office · Adullam Incorporation