Set up a liaison office in India for market research, business promotion, and communication. Expert assistance for RBI approval and liaison office registration. No commercial activities permitted.
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Conduct market research and feasibility studies in India.
Promote parent company's products and services in India.
Facilitate communication between parent company and Indian entities.
Minimal setup and operational costs compared to other structures.
Operations are regulated and monitored by RBI.
Simpler compliance requirements compared to branch offices.
FastLegal streamlines your liaison office setup process
Prepare all required documents including parent company certificates, financial statements, and business plan.
File application with RBI for liaison office approval with complete documentation.
Wait for RBI approval (typically 4-6 weeks) and address any queries.
Open bank account, register for taxes (if required), and complete post-approval compliance.
A liaison office is a representative office of a foreign company in India that can only engage in non-commercial activities like market research, business promotion, and facilitating communication. It cannot engage in any commercial activities or earn income in India.
A liaison office can only engage in: market research, promoting parent company's products/services, facilitating communication between parent company and Indian entities, and acting as a communication channel. It cannot engage in any commercial activities or earn income.
Yes, RBI approval is mandatory for setting up a liaison office in India. The application must be filed with RBI along with required documents, and approval typically takes 4-6 weeks.
The foreign company must have a track record of profitability for the last 3 years, net worth of at least USD 50,000, and must be engaged in business activities for at least 3 years.
No, a liaison office cannot engage in any commercial activities or earn income in India. It can only receive remittances from the parent company to cover its expenses.
Liaison offices have minimal tax implications as they cannot earn income. However, they may be subject to TDS on certain payments and must comply with Indian tax laws for any transactions.
A liaison office cannot engage in commercial activities and is limited to market research and promotion. A branch office can engage in export/import, R&D, and consultancy services, and can earn income in India.
A liaison office can operate for an initial period of 3 years, which can be extended for additional periods subject to RBI approval and compliance with regulations.
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