Liaison office Registration
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Liaison office Registration
Foreign companies/entities can establish a liaison office in India to assist and promote the parent company’s business activities, and act as a communications channel between the foreign parent company and Indian companies.
Permitted activates to be performed by liaison office in India:
- Facilitate communication between the overseas parent company and parties in India to establish market opportunities;
- Promote imports/exports between countries;
- Establish financial and technical cooperation between overseas and Indian companies; and
- Represent the overseas parent company in India.
Eligibility Criteria for setting up a liaison office in India:
The foreign parent company must have:
- The net worth of not less than USD 50,000 or its equivalent; and
- The profit making track record during the immediately preceding three financial years.
Documents required for liaison office Registration:
Documents play an important role in the process of Branch office registration. Hence Documents have to be latest, eligible and legible.
Documents Required From Parent Company
- Certificate of Incorporation/ Registration of Foreign Company
- Memorandum of Association(MOA)
- Articles of Association(AOA)
- Complete details of Directors and Key Executives of the company
- Complete details of the shareholders of the applicant company
- Net worth certificate attested by Certified Public Accountant (CPA)
- Audited financial statement of the Last five preceding year’s
- Banker’s Report from the applicant’s banker in the host country
Documents Required For The Company Registered Address:
- Board resolution in favor of the authorized representative
- Power of attorney in favor of the authorized representative
- Colour Photo – 5
- Passport – 5 Copy
- Business Visa Copy with Immigration Stamp of arrival
- National Identity Card – 5 Copy
- Latest Address Proof (Bank Statement/ Electricity/ Water Bill/ Phone Bill)
Frequently Asked Questions
‘Liaison Office’ means a place of business to act as a channel of communication between the principal place of business or Head Office and entities in India but which does not undertake any commercial /trading/ industrial activity, directly or indirectly.
Approval to set up an liaison office is granted by RBI through Authorized Dealer Category 1 Bankers (AD-1) and thereafter registration with the Registrar of the Companies (ROC)
- No income generating activity is permitted in India and parent company must finance all its operation.
- The name of the liaison office in India must be the same as the parent company
- The foreign parent company must have a profit making track record during the immediately preceding Three financial years in the home country and net worth of not less than USD 50,000 or its equivalent.
Then setting up a Liaison Office in India is not possible.
Provided that, if entity registered outside India that is not financially sound and not fulfilled the eligibility criteria and if that entity is subsidiary of other companies then entity may submit a Letter of Comfort from their parent company subject to the condition that the parent company satisfies the prescribed criterion for net worth and profit.