Setup a Liaison Office

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Setup of Liaison Office in India – N.D. Savla & Associates

A Liaison Office (LO) acts as a communication channel between a foreign parent company and stakeholders in India. It is ideal for companies looking to establish a presence in India without directly engaging in commercial or revenue-generating activities. At N.D. Savla & Associates, we assist foreign companies, NRIs, and overseas corporations in the setup and compliance of Liaison Offices in India under the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines.

Overview

A Liaison Office is permitted to engage in limited activities such as market research, brand promotion, networking, and communication on behalf of its parent company. It cannot undertake business, earn income, or enter into commercial contracts in India. Approval is granted by the RBI, and all operations must comply with FEMA and local tax regulations.

Features

  • End-to-end support for RBI application and approval process

  • Assistance in drafting LO setup documents, parent company undertakings, and financial reports

  • Advisory on permissible activities of a Liaison Office in India

  • PAN and TAN registration for compliance purposes

  • Guidance on annual filings with RBI and Registrar of Companies (ROC)

  • Support in closure or conversion of Liaison Office into Branch/Project Office when required

Documents Required

  • Application to RBI (Form FNC)

  • Certificate of Incorporation and Charter documents of the parent company

  • Latest audited financial statements of the parent company

  • Banker’s Report from the parent company’s banker abroad

  • Power of Attorney / Board Resolution authorizing establishment of LO

  • Passport copies and ID proofs of authorized representatives

  • PAN/TAN application documents

Procedure

  • Initial Consultation – Assess eligibility of the foreign parent company under FEMA/RBI rules.

  • Application Filing – Submit Form FNC along with supporting documents to the RBI through an Authorized Dealer Bank.

  • Approval from RBI – RBI examines the parent company’s financial strength and grants approval.

  • Registration – Register Liaison Office with the ROC under the Companies Act.

  • Post-Setup Compliance – Obtain PAN, TAN, open bank account, and register with police authorities (if applicable).

  • Ongoing Compliance – File Annual Activity Certificates (AAC) with RBI and maintain ROC filings.

Why This Matters

Setting up a Liaison Office in India requires careful compliance with FEMA and RBI approvals. Any lapse may result in penalties, operational restrictions, or cancellation of license. With N.D. Savla & Associates, your Liaison Office setup in India is managed seamlessly — from application to ongoing compliance — enabling you to build a legal presence in India without business risks.