Registration and compliance of Liaison Office of Foreign Company in India
Set-up a Liaison Office in India is one of the common ways for entering in Indian Market by Foreign companies. Opening a Liaison Office in India does not require creating a new entity. Opening of Liaison Office in India serve the purpose of analyzing and understanding the Indian market scenario. Liaison Office act as a communication channel between foreign entities with Indian entities, Liaison Office cannot undertake any commercial / trading / industrial activity and thus cannot earn any income in India. In order to maintain Liaison Office foreign remittance received through the normal banking channel will serve the purpose.
Liaison Office in India serve the purpose of understanding Indian market opportunities, the trading activities by Liaison Office is not permitted, thus a Liaison office can only represent its parent company to Indian Market, Liaison Office can promote import / export or any technical or financial collaboration with Indian Companies but cannot undertake trade activities. It acts as a communication channel between Indian Companies and its parent company outside India.
Liaison Office Registration on India is made by filing an application to RBI (Reserve Bank of India) and obtain approval. Post approval from RBI, there is a need to apply ROC (Registrar of Companies) to obtain a certificate of establishment of a place of business in India. We at ReturnFilings.Com can arrange and provide a place of business in India at very nominal charges. Further after obtaining certificate of establishment, there is a requirement of PAN (Permanent Account Number) and other regulatory registration will depend upon the size and nature of Liaison Office in India, such as TAN (Tax deduction Account Number), GST Registration, IEC (Import Export Code) if sampling need to be import or export.
For opening Liaison office in India, all the application need to be forwarded by the foreign entity through a designated AD Category-I bank. Mandatory attachment required along-with Liaison office registration in India includes English version of certificate of incorporation and Latest Audited Financials of the applicant organization.
Initially, the approval to open a Liaison Office in India is granted for 3 years, but it can be extended for a further period of 3 years after filing application for an extension before the expiry of the initial term. During the tenure of the Liaison office, it requires to file and report various compliance to RBI
Finally after analyzing the Indian market scenario, if a foreign entity wants to close liaison Office in India and to initiate more extensive set-up in India. It can do so after wind up Liaison Office properly. This wind-up of Liaison Office will bear no consequences future operation undertaken in a new set-up.
With the ever changing the Law and regulatory requirements relating to Liaison Office compliance in India, we keep on track and advise the same on a timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your Liaison registration in India and thereafter will provide you detailed analysis featuring the industry scenario in India, Various incentives / subsidy schemes available according to industry type. Detail analysis for Set-up of Liaison Office in India in order to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com
will take care of all your compliance need.