Setting up a Liaison Office (LO) in India is the simplest, most conservative way for a foreign parent company to establish a legitimate on-ground presence in India — test the market, build relationships with Indian customers and suppliers, promote exports and imports between India and the home country, and coordinate group communications — all without creating a full-fledged trading or manufacturing entity. A Liaison Office, also known as a Representative Office, functions purely as a communication channel between the overseas head office and parties in India.
However, an LO is a strictly regulated, non-commercial presence. It cannot earn any income in India, cannot undertake any trading, industrial, or commercial activity, and must be funded entirely through inward remittances from the parent. Every LO setup requires prior approval from the Reserve Bank of India (RBI) (or AD Category-I Bank under the automatic route where eligible), registration with the Registrar of Companies (ROC), PAN, TAN, and ongoing compliance under FEMA, the Companies Act, and the Income Tax Act.
We offer end-to-end advisory for setting up a Liaison Office in India — from eligibility assessment, RBI / AD Bank approval, ROC registration (Form FC-1), PAN / TAN / GST registrations, bank account opening, to ongoing compliance including the Annual Activity Certificate (AAC), audited accounts, and eventual closure or conversion into a Branch / Subsidiary — so your Indian presence is clean, compliant, and aligned with your long-term India strategy.
Applicable where the foreign entity and its activities meet eligibility norms — approval is granted by the AD Banker without prior RBI sanction.
Required for entities from specific countries, regulated sectors, or where eligibility norms are not met — RBI grants specific approval case by case.
An LO serves as a communication channel — strictly limited to non-commercial, non-revenue activities.
An LO is strictly barred from any income-generating or commercial activity in India.
Review of parent’s net worth, track record, sector, and country to confirm the right approval route.
End-to-end preparation and filing of Form FNC with the AD Category-I Bank or RBI for UIN allotment.
Filing of Form FC-1 with the Registrar of Companies within 30 days of establishment in India.
PAN, TAN, GST (where applicable), Professional Tax, and Shops & Establishment registrations.
Opening of the non-interest-bearing AD Category-I Bank account and remittance setup.
Annual Activity Certificate (AAC), audited accounts, ROC filings, and income tax returns.
PF, ESI, PT, TDS, and employment contracts for local staff working at the Liaison Office.
Closure of LO or conversion into Branch Office / Wholly Owned Subsidiary as India plans evolve.
Non-commercial representative office — cannot earn income in India, fully funded by parent remittances.
Can undertake specific permitted activities including export / import, consultancy, and research in India.
Set up to execute a specific contract or project in India, with a defined duration and scope.
A separately incorporated Indian company — full commercial freedom, separate legal entity, and tax residency.
An Indian company owned jointly with a local partner — combines foreign capital with local expertise.
An Indian LLP with FDI (where permitted) — hybrid of company governance and partnership flexibility.
First-time entrants looking to study the Indian market before making full commercial commitments.
Promoting export / import activities between India and the home country of the parent company.
Building on-ground relationships with Indian customers, distributors, and vendors.
Establishing a credible local office and point of contact for the overseas parent company.
Coordinating with Indian manufacturers, suppliers, and logistics partners on behalf of the parent.
Interfacing with Indian regulators, industry associations, and government departments.
Serving as a communication bridge between head office and Indian stakeholders.
First phase before scaling up to a Branch Office or a full Wholly Owned Subsidiary.
Eligibility check on parent net worth, sector, country, and right approval route.
Preparing Form FNC, Board resolutions, financials, and apostilled KYC documents.
Filing with AD Category-I Bank or RBI and obtaining the Unique Identification Number (UIN).
ROC Form FC-1, PAN, TAN, GST, S&E, and bank account opening with the AD Banker.
Annual Activity Certificate, audited accounts, tax returns, and ROC annual filings.
Partner with our specialists for end-to-end Liaison Office setup — RBI / AD Bank approval, ROC filings, tax registrations, and ongoing FEMA compliance — all under one roof.
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