How to set up Liaison Office in India

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How to set up Liaison office in India- It is without a doubt, one of the standard choices for international firms to enter into the Indian market to check the water without creating a brand new entity. This text helps you understand what a Liaison office is, when is it best for you and offers you an understanding of the Authorized Place of a Liaison Office.

What’s a Liaison Office?

A Liaison Office (also referred to as Consultant Office) can undertake solely liaison actions, i.e. it could act as a channel of communication between Head Workplace overseas and parties in India. … Promoting technical/financial collaborations between-group firms and corporations in India.

The master circular of RBI states Liaison Office (“LO”) can undertake solely liaison actions, i.e. it could act as a channel of communication between Head Workplace overseas and parties in India. It’s not allowed to undertake any enterprise activity in India and can’t earn any revenue in India. Expenses of a Liaison Office must be met totally by the international exchange out of your Head Office exterior India. Subsequently, the position of a Liaison Office is limited to accumulating details about potential market alternatives and offering details about the corporate and its products to potential Indian clients. Permission to set up such offices is initially granted for an interval of three years and this can be prolonged infrequently by an “AD Class I bank”.

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A Liaison Office can undertake the following actions in India:

1.Representing in India the parent firm/group firms

2.Promoting export / import from / to India

3.Promoting technical/financial collaborations between parent/group firms and corporations in India

4.Performing as a communication channel between the parent firm and Indian corporations

5.How to set up Liaison office in India

Steps to set up Liaison Office

In an effort to set up a liaison office and to make it workable, you want completely different sorts of approvals and registrations from completely different government authorities:

  • Designate a Bank and department where your account can be opened (post-approval) who will be a Licensed Supplier Bank (AD Bank) in your Liaison Office in India
  • File an application with all essential paperwork to the Reserve Bank of India (RBI) by the AD Bank
  • Receive approval of RBI
  • Apply to ROC to acquire a “Certificates of Institution of Place of Enterprise in India ”
  •  Registration for PAN with Income Tax Authority
  •  Registration for TAN with Income Tax Authority
  • Open an account with the Financial institution(Bank) and to acquire account number
  • Receive registration under Shop and Establishment Act (relies on location)
  • Receive registration under Skilled Tax (relies on location)
  • Receive Import Export Code (if samples must be imported)

Akssai has lots of expertise with registering firms for international firms, and we are able to let you know that after receipt of the required paperwork it should take 2 to 6 months’ time to finish all of the steps. In actuality, RBI approval alone will take 2-3 months, so it’s reasonable to plan 4-6 months to have all the things in place.

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