Check Eligibility for Liaison Office Registration in India - Preparatory Stage - 1
The establishment of place of business in India for a foreign company/corporation is governed by the Foreign Exchange Management (Establishment in India of a branch office or a liaison office or a project office or any other place of business) Regulations, 2016. For the purpose of setting up a liaison office following is the most important qualifications.
- No income generating activity is permitted
- The networth of foreign head office must be above $ 50,000
- The applicant company should have profitability track record of three years.
Only four kinds of activities are permitted for the liaison office, please refer - Permittd Activities for Liaison Office for details
Drafting of Government Forms and Documents - Preparatory Stage - 3
After we receive the complete set of basic documents we shall draft following documents for signature by the applicant company and the authorised signatory
- Board Resolution approving the opening of the liaison office in India
- Declaration from the applicant on FDI eligibility and source of fund
- Declaration about the nature of the activity, the location of the activity of proposed LO and nature of the activity, the location of activity of the applicant company.
- Form FNC
- Letter of Comfort form holding company
Legalisation of Documents - Preparatory Stage - 4
All documents which are originating from a foreign country or which is signed/executed in a foreign country shall be legalized either through Indian Embassy or to be apostilled as per the Hague Convention.
Important Points to Register Liaison or Representative Office
The foreign parent company must have a profitable track record of three years in a row & the net worth must be more than $ 50,000 attested by their auditors.
The liaison office can not earn any income in India, and the parent company must finance all its operations. An undertaking from the parent company is required.
The name must be same as that of the foreign parent company, and for each new office of such liaison office, a new approval is required from RBI with justification.
The income tax on a Liaison Office can be imposed by Indian tax authorities when it is established that the transaction amounts to commercial operation through PE.
- Documentation Support (Includes Drafting)
- Filing of FNC Form to RBI through AD Bank
- Digital Signature for the Authorised Signatory
- Registration of Foreign Company with ROC
- Registration with Local Police
- PAN & TAN Number for the Company
- Bank Account Opening Support
- GST Registration
- Import Export Code (IEC)
- Government fee & Taxes on Actual Basis
List of Documents for Liaison Office Registration
Document From Mother/Parent Company (If Applicable)
- Certificate of Incorporation / Registration of Foreign Company
- Memorandum of Association (MOA) and Articles of Association (AOA)
- List of Details in respect of Directors/Key Executives
- Details of shareholders of the applicant company
- Net worth certificate attested by Certified Public Accountant (CPA)
- Audited financial statement of the last three preceding years
- Banker’s Report from the applicant’s banker in the host country
Documents Required From the Authorised Signatory
- 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)
- Board Resolution Appointing the AR
- Power of Attorney in the name of AR
Application for Digital Signature of Authorised Signatory - Day - 1
A digital signature is the equivalent of physical or paper signature under the information technology act. As per new process all applications to the registrar of companies are filed in digital format which need to be authenticated by the digital signature of the proposed shareholders and directors as the case may be. The filing process starts with the issue of digital signature for all the promoters.
Filing of Application with RBI through AD Bank - Day - 1-3
The application for registration of a Liaison office of a foreign company is filed in FNC to the reserve bank of India through AD Bank (Authorised Dealer). The AD Bank plays a crucial role as all the communication to the RBI has to be routed through them. We have an excellent relationship with many banks in India, which certainly help in applying to the RBI and Follow Up.
Verification of KYC from Banker of Parent Company - Day - 7
After FNC Form is filed with the AD Bank, a request for verification of documents is sent to the banker of the foreign company. This process is also known as swift based verification. After receipt of confirmation of the documents from the foreign banker, the application is submitted to the RBI for their approval. The RBI may seek clarification or any additional document which need to be submitted.
Approval of RBI for Liaison Office Registration in India - Day - 15
There is a specific policy of approving the establishment of a liaison office by the AD Banker itself and only cases where the automatic route is not available the cases are forwarded for prior approval of the RBI. The process of approval after swift verification is of a week.
Registration of Liaison office with the ROC - Day - 16-25
After company incorporation, the Bank A/c has to be opened, wherein the FDI (foreign direct investment) must reach within 180 days of incorporation of the company with advance intimation to Banker. Please note that the new company can not start any of its business activities unless the capital has been received in India.
PAN Card, Tax Deduction Number & Bank A/c Opening - Day - 26
Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential to compliance with the tax rules. The bank account of the liaison office can be opened after allotment of Pan Number by the Income Tax Department.
Registration with State Police - Day - 35
Finally, the liaison office needs to register it with the state police (In the office of the superintendent of Police). The application must be accompanied by the RBI approval and KYC of all authorised persons in India and the foreign company.
GST Registration & IEC - Day - 35
By this time the Liaison office would have received the Bank Account and cheque book, we would need a copy of the check for making application for GST Registration and Import Export Code for the Liaison Office of the foreign Company
Video on Liaison or Representative Office Registration
Frequently Asked Questions
What is a liaison office & Who can set-up a liaison office?
A foreign company before entering the Indian market may intend to conduct some preliminary research or representation before the potential customers or partners, for that limited purpose a foreign company normally establishes a representative office also known as a Liaison Office in India. Any person resident outside including a foreign company, group company, association of person can establish a liaison office in India.
What is permitted/allowed activities for a branch office in India of a foreign entity?
A liaison office of a foreign company is allowed to do only limited activity in India, provided none of the activities is profit-making activity. In other words, a liaison office can do market research and representation activity only. Click to see the List of permitted activities for a Branch Office in India.
What is Income Tax rate for a Liaison office of a Foreign Company?
A Liaison office of a foreign mother company is not treated as a separate and distinct entity in India and for all tax purposes, the Indian government taxes the profits of such entities at higher rates. As of now the Income Tax on the profit of a foreign company is 40% in contrast to the tax rate of 30% on an Indian company.
What are the conditions /requirements for opening a Liaison office in India?
The liaison or representative office of a foreign company can be opened if the applicant foreign corporation has a track record of profit generation for the past 3 years and it is financially sound. When we say financially sound in the context of a representative or liaison office establishment in India of a foreign company, we mean net-worth of USD 50,000 or its equivalent. The financial statement duly attested by the statutory auditor of the parent company is required.
What Documents are required for forming a Liaison Office in India?
Following documents are required for registration of a liaison office of the foreign company
- Certificate of Incorporation or business license of parent company
- Charter issued to the foreign company by the government
- Memorandum of Association or Articles (Rules of the Company)
- A declaration from the foreign corporation (parent company) that the parent company shall meet any shortfall in meeting the expenses of branch office
- Three years historical Financial Statement of the parent company duly attested by its auditors
- A certificate from the auditors of the parent company that the net worth of the parent co is more than $ 50,000 or its equivalent.
- The identity and address proof of the responsible person to do compliance for the branch office in India.
- Premises proof, where the branch office shall be registered
- A No objection certificate from the owner of the premises of office.
- In case the document is in the foreign language, then a certified translation thereof must be filed.
- All the document having foreign origin shall be legalised as per Hague convention or by the Indian embassy, high commission.
What are Other Incorporation Requirements for Liaison Office Registration in India?
After approval of the RBI for establishing a Liaison office in India by a foreign company is obtained the same need to be registered with the ROC within 30 days by filing form FC-1 with the digital signature of the authorised person and following documents as annexure
- A certified copy of the charter, statutes or memorandum and articles, of the company or other instrument constituting or defining the constitution of the company and, if the instrument is not in the English language, a certified translation thereof in the English language;
- The full address of the registered or principal office of the company;
- A list of the directors and secretary of the company containing such particulars as may be prescribed;
- The name and address or the names and addresses of one or more persons resident in India authorized to accept on behalf of the company service of process and any notices or other documents required to be served on the company;
- The full address of the office of the company in India which is deemed to be its principal place of business in India;
- Particulars of opening and closing of a place of business in India on earlier occasion or occasions;
- A declaration that none of the directors of the company or the authorized representative in India has ever been convicted or debarred from the formation of companies and management in India or abroad; and Any other information as may be prescribed.
What are the countries for which liaison office registration cannot be done under the automatic route and can be established only after prior approval is received from the RBI?
- Sri Lanka,
- Hong Kong,
- Or any application for opening of a branch office in Jammu & Kashmir, North East Region and Andaman and the Nicobar Islands.
Who approves the setting up of a liaison office?
The RBI is empowered to approve the establishment of a liaison office in India, under master direction dated January 01, 2016 for the establishment of a place of a foreign corporation the powers have been delegated to any AD Category 1 Banker.
How to set up a Liaison Office in India?
To set up a liaison office first check the eligibility of being financially sound in terms of the network not being less than USD 50,000 or its equivalent. Then call setindiabiz representative to discuss documentation and stepwise process. That's it, rest shall be taken care by the professionally qualified CA, CS and Advocates.
Trusted by Leading Companies
Review of Setindiabiz
I am new at incorporation field but SETINDIABIZ help me out & I would like to mention especially for Ms Sana Parveen guided me all through the...See at Google
I was doubtful in the beginning to contact them for my work but they proved to be very professional and fast. I contacted SetIndiaBiz for...See at Google
Wonderful experience and a very professional bunch of people. To name some I have been recently dealing with Shaily Dhoudiyal, Suman Khowal...See at Google
Wonderful experience. Setindiabiz is very professional and efficient. Its executives are very friendly and helpful. Preeti who was handling...See at Google
Professionalism at its best. Every employee in this company is so energetic and punctual. you can rely on this company for sure...See at Google
Super fast service, They helped me in formation of my new company "Storaway Warehousing And Logistics Private Limited"...See at Google
The staff is really praiseworthy. I would like to mention specially for Ms Shaily Dhoundiyal guided me all through the process. she...See at Google
A good and professional company. I came to know about this company from Google. When I go through company profile and big company. My serviceSee at Google
Enthical company with finest of Staff , Specially Shailey Dhoundiyal. She helped a lot through out the process of registration ans incorporationSee at Google
Extremely Satisfied with the service. I came through this company in Google search. Initially I was hesitant about how would be the service... See at Google
Setbiz India made us very easy to deal with all documentation. Staff Shaily guided all through the process. Over all a Good team. Keep it up... See at Google
Sana parveen has been really efficient an quick in the process for KYC filing. Tremendous job.keep up the good work. All the best... See at Google
Setindiabiz truly committed to their statements .Their work is also very quick and on time and they even treat their customers in.... See at Google
All the work of my company has been done by Satindiabiz employees for the last 3 years. I am satisfied with their work. I thank to Shaily.... See at Google
My first experience today and it was really a wonderful experience. Quick updates and follow ups considering the criticality of the.... See at Google
I'm very happy with the services provided ms Nishtha walked me through some of the processing very patiently and kept regular updates. Thank you... See at Google
Shaily is prompt and cooperative, i had a smooth experience in filing my annual returns and also during LLP establishment. I thank her and wish good luck :-)... See at Google
All the work of my company has been done by Satindiabiz employees for the last 3 years. I am satisfied with their work. I thank to Shaily medm for the submission of my DIN KYC file... See at Google
They provide the best service for business registeration.Thank you so much Shaily for providing such a great and efficient assistance for my... See at Google
I had a very pleasant experience with SetIndiaBiz. Thanks to shaily and shubhlam who guided me step by step through the process... See at Google
Shaily and Khusboo have been great professionals, showing an amazin intent of delivering customer satisfaction.. I highly recommend SETINDIABIZ!.... See at Google
This company have a great service and my cs Sana Praveen mam is so good and very responsive person . Thank you setindiabiz and thank u Sona mam... See at Google
They give fast response to the customers and respect them and helps the customer in all the way in budget friendly manner... See at Google
They give fast response to the customers and respect them and helps the customer in all the way in budget friendly manner... See at Google
Good people but worst services. If you are startup please avoid them. There is lot of miscommunication and no proper information. They wont... See at Google
Excellent service, Very cooperative, Especially Harish sharma's way of talking and understanding your query is extremely nice. Thank you...See at Google
Excellent service, prompt response. Very professional approach to the entire process. Special thanks to Neha who made it very easy for me....See at Google
SETINDIABIG good services with in a short period of time, employees excellently coordinate with a clients Tq SARANYA and team for supporting...See at Google
Registration took just one day to complete. Speed of execution is key to start new business and Setindia understands the needs of...See at Google
They are truly committed to their statements .Their work is also very quick and on time and they even treat their customers in a very polite...See at Google
The executive person were incredible helpful and understanding of my views of situation and did everything they could to get me the Incorporation...See at Google
I am very satisfied with the work. which Sana Parveen had done. really appreciate for the fast process and. access. thanks to setindiabiz and...See at Google
Awesome great service! We are unexpected. my company get easy all legal documents through SetIndiabiz. They are provided best...See at Google
I have done my company registration at SETINDIABIZ along with TM and taken consultancy services for FDI . Services and guidance was...See at Google
I am very impressed with work delivery system of Setindiabiz & team. They're very much competent to guide any start Up in statutory...See at Google
Good company, good people gives compliance related services in very professional way and delight customer by their services. i very much...See at Google
Highly supporting system for new business.. thankyou SETINDIABIZ for providing every type of business related support to new in field...See at Google
Thank to all team members of SETINDIABIZ ..Your customer support is really like Backbone... Special thanks to "Mr. Praveen Singh" who is...See at Google
Big thanks to Kuldeep, Shaily and folks at SetIndiaBiz for registering my company within 7 days. Everything was handled professionally... See at Google
I appreciate your service and will surely recommend to my friends who are looking for registering their company . It was a excellent job... See at Google
Thanks For Helping In Registration of Company And Registration of GST. They Come Quickly Than Estimated Time. ................... See at Google
My notions were feeble to pay for online services before "SETINDIABIZ" experiences. However they utterly pay-off my each penny by their swift and... See at Google
Thank you SETINDIABIZ for all your help in registering my private limited company in Bangalore, very smooth and they made it very easy for me. ... See at Google
Very Good Service, Quick Qquality Work, Time completed, Low Cost Work, We be Happy. TSR ENGINEERING PVT LTD /Director........... See at Google
Interacted with Mr. Manav Gandhi for filing my gst returns. He was very courteous, polite and quick-to-action. Thank you for your...See at Google
perfection, sincerity, on timing means SETINDIABIZ. contacted several companies for my work online and offline but couldn't get anyone to...See at Google
Excellent services offered for Start Up Firms and also for existing companies. Hope SetIndiaBiz opens up more offices in Tier II cities and...See at Google
Excellent support from Manav Gandhi at SETINDIABIZ. He ensured to stay back in office till late night and complete our work at the earliest and...See at Google
Good work done by Mr manav gandhi ,he is more concerned about my work to be completed on time,loved his working. ...............See at Google
I always had a great experience with SetIndiaBiz. It is since 2 years that I am getting all my trademarks done through them......See at Google
Best legal service provider and flexibility in time commitment.All executives from sales to operations team: neha & Swati are really good in...See at Google
I would like to mention that Set India Biz is one of the best professional company I have worked with. All team members are customer focused and...See at Google
I believe with the relationship with SETINDIABIZ is worth value for money. Our account was managed by Proshanto and he has very proactive to support... See at Google
Overall it is good Experience. Representatives are very active. They will walk you through each and every process. They will help you with the...See at Google
Great service with understanding of budget and requirement of customer. A trustful firm for people who has basic knowledge of legal rules. ... See at Google
I highly appreciate the managers and co-workers as they are highly committed to their work. All the reports, forms and correspondence are... See at Google
I had very good experience of setting up my company. The team at SetIndiabiz are professional & understands need and executes at pace needed. ... See at Google
Setindiabiz is a Great Company for registration of PVT. LTD. , LLP or any other company. Their process is fast but due to Durga puja holiday my... See at Google
We got our documentation done by SetindiaBiz and we are really happy to have found the right consultancy. Really helpful, patient and ... See at Google
Perfection and quality makes SETINDIABIZ differ from other companies. Promptness is an additional quality of them. Hats-off guys. Good job...See at Google
I'm happy with the phone and the deal i got from the company. Speaking with the service team helped me get exactly what i was looking for... See at Google
Dedicated, supportive and understanding team. What else we need to get the jobs done? Thanks to Set India Biz for helping me. .......See at Google
Have a great pleasure, and experience with team 'SETINDIABIZ' knowledgeable and supporting staff. As per our requirement, They committed and...See at Google
It's amazing. It was easy to understand and work was completed smoothly. Liked there work and recommend everyone to give them a chance. The best...See at Google
Very Nice and great company, all the executives are so polite and professional, they know their work very well and they are master in them. ......See at Google
Reliable with service satisfaction, employees are very helping & cooperative. Am grateful & thank you to the entire team of SetIndiabiz was......See at Google
I have had a very good experience with them in incorporating my LLP. Sana Parveen from Delhi office has been very helpful and very much approachable.......See at Google
The complete team is amazing, a very co-operative and helpful. They will answer all your questions calmly even if you ask same thing million of times. ...See at Google
I should write here .. I'm really impressed about Ms. PUJA.. You're an asset to your company Setindiabiz... I'm writing most about the person...See at Google
Good company for dealing with startups especially for documentation and registration. On the time action and positive results. ........See at Google
Great people, culture, All of the team, including the managers are approachable, helpful, caring and hard working.....keep up the good work....!! ...See at Google
I would like to mention that Set India Biz is one of the best professional company I have worked with. All team members are customer focused...See at Google
Rhanks To Sana For Being An Best Supportive Cordinator All The Time. On Start Had face a Lot of Issues because of mumbai Office but then Got in...See at Google
Excellent service. Mainly, its the timely update needed which is supplied on regular intervals. Ms. Khushboo & Ms. Swati were very cooperative...See at Google
The support given to me by corporate lawyer Mr. Kishore is really commendable. He was very cooperative in her approach towards our requirement and...See at Google
I had a good experience with SetIndiaBiz for TM registration. Mr. Shubham who was dealing my case was very professional and clear about what is ...See at Google
REALLY FAST AND PROMPT SERVICE.VERY GOOD EXPERIENCE OF SETTING UP ALL THE REQUIREMENTS WITHOUT ANY HINDERANCE. .THANKS TO THE TEAM ESPECIALLY MR. ...See at Google
I hardly trust people in business society. However, the people in this company are exception. You can trust them blindly. They are unbelievably ...See at Google