Liaison Office Setup in India

Establish liaison office for market research, communication, and promotional activities with RBI approval

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What is a Liaison Office in India?

A Liaison Office (LO) is a representative office of a foreign company established in India to act as a communication channel between the parent company and Indian entities. Liaison Offices cannot undertake any commercial, trading, or industrial activities and are primarily meant for promoting export/import, market research, and liaison activities between Indian companies and the parent company. Liaison Offices require prior approval from the Reserve Bank of India (RBI).

Key Benefits

  • Market Research & Exploration
  • No Income Tax Liability (on remittances)
  • Simplified Setup Process
  • Build Indian Market Presence
  • Easy Fund Remittance from Parent

Permitted Activities

Market Research & Surveys
Promoting Export/Import
Facilitating Technical Collaborations
Acting as Communication Channel
Representing Parent Company

Prohibited Activities

Direct Commercial/Trading Activities
Earning Any Income in India
Manufacturing or Processing
Retail Trading

Setup Process

1
Step 1

RBI Prior Approval Application

2
Step 2

PAN & TAN Registration

3
Step 3

Office Address Registration

4
Step 4

RBI Registration Certificate

5
Step 5

Bank Account Opening

6
Step 6

Annual Activity Certificate Filing

Documents Required

Certificate of Incorporation (Parent Company)
Audited Financial Statements (Last 3 Years)
Board Resolution for Setup
Authorized Representative KYC
Registered Office Proof in India
Detailed Activity Plan

What's Included in Our Package

  • Complete RBI Approval Assistance
  • PAN & TAN Registration
  • FEMA Compliance Support
  • Bank Account Opening Assistance
  • Annual Activity Certificate Filing
  • Frequently Asked Questions

    No, Liaison Offices cannot undertake any commercial activities or earn income in India. All expenses must be met through inward remittances from the parent company.
    RBI approval is initially granted for 3 years and can be extended subject to compliance and submission of annual activity certificates.
    Generally not required as Liaison Offices do not undertake commercial activities. However, it may be required if receiving certain services.
    Yes, a Liaison Office can be converted to a Branch Office or Subsidiary with proper closure procedures and fresh RBI approval.
    Annual Activity Certificate from Chartered Accountant, income tax returns (if applicable), and RBI reporting of foreign exchange transactions.

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