Setup a Liaison Office in India

Q: What activities can a Liaison Office carry out in India?

Permitted: represent parent, promote exports/imports, promote technical collaborations, communicate between parent and Indian parties, collect market intelligence. Not permitted: earn income, sign contracts, conduct trading or commercial activities.

Q: How long does RBI approval for a Liaison Office take?

Typically 4 to 8 weeks from AD Bank submission. Requires parent financials (3 years), board resolution, proposed activities, and authorised representative details. Countries sharing land borders with India require additional government approval.

Q: What is the Annual Activity Certificate and when must it be filed?

Annual confirmation filed with RBI through the AD Bank by 30 September each year. Must be accompanied by a CA certificate confirming no Indian income was earned during the year.

Q: Can a Liaison Office hire employees in India?

Yes. Indian employees can be hired for permitted liaison activities. Salaries funded by parent remittances. Must comply with Indian labour laws, PF/ESI, and TDS on salary despite not earning income in India.

Q: When should a Liaison Office be upgraded to a Branch Office or subsidiary?

Upgrade when the company wants to earn Indian income, enter contracts, provide commercial services, or establish long-term operations. A Branch Office suits limited commercial activities; an Indian subsidiary suits full operations.

Establish a Representative Presence in India Without Commercial Operations — RBI Approval and Full Compliance Support

A Liaison Office (also called a Representative Office) is the most limited form of foreign company presence in India — it can only act as a communication channel between the foreign parent and its Indian counterparts. It cannot earn any income in India, cannot carry on any commercial or trading activities, and is fully funded by inward remittances from the parent company.

Liaison Offices are ideal for foreign companies that want to explore the Indian market, promote their products and services, collect information, and facilitate business relationships — without committing to full commercial operations. All expenses of the Liaison Office must be met through foreign remittances. For operational presence, see our branch office setup and Indian subsidiary services.

Our Liaison Office Setup Services

RBI Approval Application

Preparing and submitting the Liaison Office application to the RBI through the designated AD Bank — including parent company financials, proposed activities, and authorised representative documentation.

ROC Registration (FC-1)

Registering the Liaison Office with the ROC as a foreign company in Form FC-1 within 30 days of the RBI approval and establishment of the place of business in India.

PAN for Liaison Office

Obtaining PAN for the Liaison Office — required for FEMA compliance, bank account opening, and tax deduction purposes even though the Liaison Office does not earn income in India.

Bank Account Setup

Assisting with opening an Indian bank account for the Liaison Office with an AD Bank — for receiving parent remittances and managing Indian operational expenses.

Annual Activity Certificate (AAC)

Filing the Annual Activity Certificate (AAC) with the RBI through the AD Bank by 30 September each year — confirming that the Liaison Office has carried on only permitted activities.

Renewal & Closure Support

Managing the RBI approval renewal (typically every 3 years), change of authorised representative, and formal closure of the Liaison Office when the parent decides to exit.

Key Facts About Liaison Offices in India

Requires prior RBI approval — applied through the AD Bank using the prescribed application
Cannot earn income in India — all expenses funded by parent remittances
Permitted activities: market research, promoting parent's products, facilitating communication only
Must file Annual Activity Certificate (AAC) with RBI by 30 September
Must register with the ROC in Form FC-1 within 30 days of establishment
RBI approval typically valid for 3 years and must be renewed
No income tax return required in India as no income is earned

Frequently Asked Questions

What activities can a Liaison Office carry out in India?

A Liaison Office in India is permitted only to: represent the parent company in India; promote exports from or imports into India; promote technical and financial collaborations between the parent and Indian companies; act as a communication channel between the parent and its Indian customers/suppliers; and collect market information and intelligence. It cannot earn any income in India, cannot sign contracts on behalf of the parent, and cannot undertake any commercial, trading, or industrial activities. All expenses must be funded by remittances from the parent.

How long does RBI approval for a Liaison Office take?

RBI approval for a Liaison Office typically takes 4 to 8 weeks from the date of submission through the AD Bank. The application must include the parent company's audited financial statements for the last 3 years, a board resolution authorising the establishment, the proposed activities in India, and details of the authorised representative. Foreign companies from countries sharing a land border with India (Pakistan, Bangladesh, China, Nepal, Myanmar, Bhutan, Afghanistan) must obtain government approval in addition to RBI approval.

What is the Annual Activity Certificate and when must it be filed?

The Annual Activity Certificate (AAC) is an annual confirmation filed with the RBI through the designated AD Bank certifying that the Liaison Office has carried on only the activities permitted under the RBI approval during the year. It must be filed by 30 September each year and must be accompanied by a certificate from a Chartered Accountant confirming that the Liaison Office has not earned any income in India during the year. Failure to file the AAC can result in cancellation of the RBI approval.

Can a Liaison Office hire employees in India?

Yes. A Liaison Office can hire Indian employees to carry out its permitted liaison activities — such as market research, client meetings, and coordination with Indian stakeholders. The salaries and other expenses of Indian employees must be funded by remittances from the parent company. The Liaison Office must comply with Indian labour laws, PF and ESI obligations, and TDS on salary (Form 24Q) for its Indian employees, even though it does not itself earn income in India.

When should a Liaison Office be upgraded to a Branch Office or subsidiary?

A Liaison Office should be upgraded when the foreign company wants to: earn income from Indian operations; enter contracts directly in India; import or export goods; provide technical or professional services commercially; or establish a long-term operational presence. At that point, either a Branch Office (for limited commercial activities) or an Indian subsidiary company (for full commercial operations) is more appropriate. The transition requires closing the Liaison Office through the proper RBI procedure and separately applying for the new entity's approvals.

Establish Your Liaison Office in India

RBI application, ROC registration, annual AAC filing, and renewal support — complete liaison office setup.

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F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.