Liaison office

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Description

A. Eligibility

A foreign Company having net worth of USD 50000 or its equivalent and track record of making profit during immediately preceding three financial years can open Liaison office. Approval is normally given for 3 years (2 years for NBFC’s / entities engaged in construction sector)

In cases where the applicant foreign entity does not meet the financial criteria, the parent company may issue a Letter of Comfort (LoC), given the company satisfies the prescribed criteria for net worth and profit.

B. Permitted Activities 

  1. To represent Foreign Company in India.
  2. Collect info about market opportunity
  3. Promote import/export to/from India
  4. Facilitate technical/financial collaboration

C. Restricted Activities

  1. Can’t undertake any commercial activity 
  2. Can’t earn any income in India

D. Tax: Not applicable

E. Exit: Prior approval of AD bank and ROC authorities is required.

List of Standard Documents required

  1. Two Copies of Certificate of Incorporation / Registration (notarised and attested by Indian Embassy) (One copy each for RBI & ROC). If it is in language other than English then Translation of the same notarised and attested by Indian Embassy is required.
  2. Two Copies of Memorandum & Articles of Association (English Translation) notarised and attested by Indian Embassy
  3. Details of Last Three Years Import Into / Export from India (On letter head, signed with stamp, five copies)
  4. Latest 3 years Audited Balance Sheet (English translation) notarised / attested by Indian Embassy
  5. Existing arrangements if any in India eg direct / indirect agent
  6. Details of existing Indian Clients if any
  7. Details of activities to be undertaken in India
  8. Details of products / services to be rendered in India by parent company. Also, provide some literature like brochures / catalogs of products and literature on the company, if any. Indian regulators (RBI) prefer these literatures and it helps in getting process completed speedily
  9. Some other Forms, documents may be required with signature which we would provided to you.

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