4 Activities are Permitted for a Liaison Office of a foreign company in India
A liaison or representative office of a foreign company, a body corporate incorporated outside India, including a firm or other association of individuals are permitted to only following activities.
- To represent the parent or group companies in India
- To engage in activities which are in the nature or promotion of Import or Export
- To promote technical or financial collaborations between parent/group company or companies in India.
- To act as a channel of communication between the parent company and the Indian Company.
The activities which can be pursued by a representative/ liaison office is exclusively based on the list prescribed under regulation 4(b) of the Notification number FEMA 22 (R)/2016-RB dated March 31, 2016. (see the schedule I of Annex B of the before said notification)