Overview of Liaison Office Registration in India
A Liaison Office (LO) acts as a communication channel between a foreign company and its stakeholders in India. It cannot undertake commercial, trading, or industrial activities but is ideal for brand promotion, research, and representation. Registration of a Liaison Office requires prior approval from the Reserve Bank of India (RBI).
Advantages of Setting Up a Liaison Office
- 100% foreign ownership permitted (with RBI approval)
- Facilitates market research and brand visibility
- No income tax liability for non-income-generating activities
- Represents parent company in India without full operations
- Ease of coordination with Indian customers & vendors
Eligibility Criteria
- The foreign company must have a profitable track record for the last 3 years
- Net worth should be at least USD 50,000 or equivalent
- Operations must be limited to liaison/representative activities
- Approval is subject to RBI and AD Bank scrutiny
- Activities must not involve any commercial or revenue-generating functions
Documents Required
- Parent company’s Certificate of Incorporation
- Board resolution for establishing LO in India
- Latest audited financials of parent company (3 years)
- Banker’s report from the foreign bank
- Details of proposed activities and office address in India
- KYC and passport copies of authorized representative
Registration Process
- Step 1: Draft application with required documents
- Step 2: File application with AD Category-I Bank
- Step 3: AD Bank forwards application to RBI for approval
- Step 4: Upon approval, obtain Unique Identification Number (UIN)
- Step 5: Register with ROC and open bank account in India
Why Choose Corporate Analytica?
- Expertise in RBI and FEMA compliance
- Fast-tracked documentation and submission
- Dedicated liaison with RBI & AD Banks
- Transparent pricing with no hidden charges
- Support with post-registration compliance and reporting
Post‑Registration Compliance
- Filing of Annual Activity Certificate (AAC) with RBI
- Timely submission of audited accounts and reports
- Maintain books of accounts in India
- Adherence to FEMA and RBI guidelines
- Renewal of permission if required beyond initial term
Frequently Asked Questions (Liaison Office)
Q1. What is the purpose of a Liaison Office?
A Liaison Office is established by foreign companies to explore Indian markets, facilitate communication, and promote the brand without undertaking commercial activities.
Q2. Can a Liaison Office earn revenue in India?
No. Liaison Offices are strictly prohibited from earning income or engaging in business activities in India.
Q3. How long does it take to get RBI approval?
It usually takes 30–45 working days after complete documentation and application through AD Bank.
Q4. Is physical office space required?
Yes, a physical office address in India is mandatory for Liaison Office registration and ROC filings.