The Classic Partners LLP
Liaison Office Setup in India
Liaison office (representative office) setup in India for foreign companies under FEMA and RBI regulations. We obtain RBI approval, register with the ROC, and manage PAN and compliance so your parent company can build a presence and explore the market without carrying on commercial activity.
Talk to a Liaison Office Setup ExpertWhat is a Liaison Office?
A liaison office, also called a representative office, is set up by a foreign company in India purely to act as a communication channel between the parent and parties in India. It cannot carry on any commercial, trading or industrial activity and cannot earn income in India; all its expenses are met through inward remittances from the parent.
It is ideal for foreign companies that want to explore the Indian market, promote the parent’s business and coordinate with customers before committing to a full presence. When you are ready to generate revenue, a branch office or Indian subsidiary is the next step.
Who Should Set Up a Liaison Office?
- Foreign companies exploring the Indian market before a larger commitment.
- Parents wanting to promote their business and brand in India.
- Companies coordinating with Indian customers, suppliers and partners.
- Groups that do not yet need to earn income or trade in India.
- Businesses comparing a liaison office with a branch office.
Our Liaison Office Services
RBI Approval
Application and approval for the liaison office under FEMA.
ROC Registration
Registration of the foreign company's liaison office with the ROC.
PAN & Bank Setup
PAN and bank account setup funded by inward remittances.
FEMA & RBI Compliance
Annual Activity Certificate and FEMA reporting.
Accounting & Audit
Book-keeping and audit of the liaison office accounts.
Upgrade Support
Conversion to a branch office or subsidiary when you scale.
Why Choose The Classic Partners
- FEMA and RBI expertise for smooth liaison office approvals.
- Single-window setup from approval to compliance.
- Remote onboarding for overseas parent companies.
- Clear upgrade path to a branch office or subsidiary.
Related Services
Frequently Asked Questions
What is a liaison office in India?
A liaison office is a representative office set up by a foreign company to act as a communication channel between the parent company and parties in India. It cannot carry on commercial activity or earn income in India.
Can a liaison office earn income in India?
No. A liaison office cannot earn any income in India or carry on commercial, trading or industrial activity. All its expenses must be met through inward remittances from the parent company abroad.
What activities can a liaison office undertake?
A liaison office can represent the parent company, promote its business, act as a communication channel, and facilitate technical or financial collaborations, but it cannot enter into commercial contracts that generate income.
Does a liaison office require RBI approval?
Yes. Setting up a liaison office requires approval processed through an authorised dealer bank and, in certain cases, the Reserve Bank of India, and the approval is generally granted for a defined period.
What is the difference between a liaison office and a branch office?
A liaison office can only act as a representative and cannot earn income, while a branch office can carry on permitted commercial activities such as export, import and consultancy and can earn income in India.
What ongoing compliance applies to a liaison office?
A liaison office must file an Annual Activity Certificate, comply with FEMA reporting, maintain books of account, get them audited, and file income-tax returns even though it does not earn income.
Ready to set up your Liaison Office in India?
Build your Indian presence with a fully compliant representative office.
Contact Us