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
Representing the parent and group
A channel between Indian customers and the parent.
Source: rbi.org.in · checkedPromoting trade and collaboration
Promotion only; contracts and revenue stay with the parent.
Source: rbi.org.in · checkedMarket research and partner search
Common before setting up a company.
Source: india-briefing.com · checkedOperating beyond three years
AD bank extends by three years if certificates are filed; not for construction/development or NBFCs.
Source: rbi.org.in · checkedEarning income in India
No income of any kind in India.
Source: rbi.org.in · checkedFunding from Indian sources
Only inward remittances from the parent.
Source: rbi.org.in · checkedRBI/MCA steps & deadlines
Source: globallawexperts.com ·
Source: globallawexperts.com ·
Source: setindiabiz.com ·
Source: rbi.org.in · checked
Source: globallawexperts.com ·
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
Timeline
Liaison premises via Adullam Property
Liaison offices can only lease, not buy. Check office rents by city.
Open Adullam Property →Recent cases
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Read source →Illustrative: an LO while finding a distributor, then a company.
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