Setup a Liaison Office in India
Establishing a liaison office for a foreign company to represent its interests in India, gather market information and act as a communication channel, without undertaking any revenue-generating activity.
A liaison office, also called a representative office, can be opened by a foreign company with the prior approval of the Reserve Bank of India, routed through an Authorised Dealer Category-I bank under the Foreign Exchange Management Act. It is permitted only to represent the parent company, promote its products or services, and facilitate communication, and it cannot undertake any business activity or earn income in India; its expenses are met entirely through inward remittances from the head office.
What our liaison office setup service covers
RBI approval and the renewal cycle that follows it.
- Assessing eligibility, including the parent company's profitability track record for the preceding financial years
- Preparing and filing Form FNC with the Authorised Dealer bank for approval by the Reserve Bank of India
- Coordinating registration with the Registrar of Companies within the prescribed time after RBI approval
- Applying for PAN, and where applicable, a Permanent Account Number-linked bank account for receiving remittances
- Advising on permitted activities and the boundary that separates liaison work from revenue-generating business
- Managing the periodic renewal of the liaison office approval and the Annual Activity Certificate filing
What defines a compliant liaison office
The conditions the RBI checks at approval and at renewal.
Permitted Activities Only
Restricted to representing the parent, promoting its products, and gathering market information; the office cannot invoice or earn revenue in India.
RBI Approval via AD Bank
Approval is granted by the Reserve Bank of India through an Authorised Dealer Category-I bank, based on the parent's financial track record and business profile.
Funded by the Head Office
All expenses of the liaison office are met exclusively through inward remittances received from the foreign parent company.
Renewal Cycle
Approval is typically granted for three years and must be renewed, along with an Annual Activity Certificate confirming the office has not exceeded its permitted scope.
Our process
From initial consultation to completion.
Eligibility Review
Checking the parent company's financial track record and proposed activities against RBI eligibility norms.
Form FNC Filing
Filing the application through an Authorised Dealer bank for approval by the Reserve Bank of India.
Registration in India
Registering the approved liaison office with the Registrar of Companies and obtaining PAN.
Ongoing Compliance
Filing the Annual Activity Certificate and managing renewal of the RBI approval before expiry.
Why liaison offices attract scrutiny if scope is exceeded
What sets our approach apart.
Crossing into revenue activity risks reclassification
If a liaison office is found to be undertaking commercial activity, it can be treated as a taxable permanent establishment of the foreign company in India, with retrospective tax exposure.
Renewal is not automatic
The RBI reviews the Annual Activity Certificate before renewing approval, so gaps in filing or activities outside scope can delay or jeopardise continuation.
Bank account operations are closely monitored
Since the account can only receive inward remittances for permitted expenses, any deviation is flagged during the Authorised Dealer bank's periodic review.
Setup a Liaison Office in India questions answered
What people ask before engaging us.
Planning to open a liaison office in India?
We handle the Form FNC filing, RBI approval coordination, and annual renewal compliance.
