Setting up a Liaison office in India

About Us

We are the Group of Professionals compromising Chartered Accountants, Company Secretary and other professional Consultants providing Corporate law services, Company Registration and Incorporation Services in India. Our Team helps Foreign Company or entities to setup there business in India. We are specialise in opening and registering the Wholly owned Subsidiary, Liaison office, Branch office or Joint Venture in India. We can helps the foreign company to setup their Wholly owned subsidiary or any Indian Venture in almost every metro city in India. We have our offices in Noida, Gurgaon, New Delhi, Mumbai.

What is Liaison office

Foreign Company can open Liaison office in India for several reasons but have some restriction: Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to set up Branch Offices in India with specific approval of the Reserve Bank. Such Branch Offices are permitted to represent the parent / group companies and undertake the following activities in India:

Registration Process for opening a Liaison office in India

General Criteria for open a Branch office in India

Application in Form FNC (Annex-1) will be considered by Reserve Bank in two routes:

 

Reserve Bank Route – Where principal business of the foreign entity falls under sectors where 100 per cent Foreign Direct Investment (FDI) is permissible under the automatic route.

 

Government Route – Where principal business of the foreign entity falls under the sectors where 100 per cent FDI is not permissible under the automatic route. Applications from entities falling under this category and those from Non – Government Organisations / Non – Profit Organisations / Government Bodies / Departments are considered by the Reserve Bank in consultation with the Ministry of Finance, Government of India.

The following additional criteria are also considered by the Reserve Bank while sanctioning Liaison/Branch Offices of foreign entities:

• A profit making track record during the immediately preceding 3 financial years in the home country i.e Foreign Country.

 

• Net Worth not less than USD 50,000 or its equivalent [total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name]

 

The Liaison shall also obtain Permanent Account Number (PAN) from the Income Tax Authorities on setting up the offices in India.

Annual Compliances to be undertaken by Liaison office

Application for Setup a Branch office in India

Information to be filed with Registrar of Companies, Delhi.

  1. Form FC-1
  2. 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
  3. The full address of the registered or principal office of the company;
  4. The full address of the office of the company in India which is deemed to be its principal place of business in India;
  5. List of directors and secretary of the foreign company.
  6. Reserve bank of India approval letter.
  7. Power of Attorney for Authorised Representative in India.

Reporting with the Directorate General of Police

  1. In September 2012, RBI came out with a new circular which enlarged the reporting requirement for a Liaison Office. The Circular mandated that:
  2. A Liaison Office shall submit a report containing information in a prescribed form within five working days of the Liaison Office becoming functional to the Director General of Police (DGP) of the state concerned in which Liaison Office/BO/PO has established its office; if there are more than one office of such a foreign entity, in such cases to each of the DGP concerned of the state where it has established office in India;
  3. A copy of the report as per Annex shall also be filed with the DGP concerned on annual basis along with a copy of the Annual Activity Certificate/Annual report required to be submitted by the Liaison Office concerned, as the case may be.
  4. A copy of report thus filed as above shall also be filed with AD by the Liaison Office concerned.

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