Establishment of Liaison, Branch Office
Permission to set up a liaison office
is granted by the Reserve Bank of India. Permissions are normally
granted for a period of three years and can be extended by further
office is not permitted to generate revenue in India.
All expenses of a liaison office must be compulsorily met
only out of inward remittances into a designated bank account opened in
India by the liaison office for the specific purpose.
office cannot import goods of its own nor can it carry on any business of
its own. A liaison office cannot raise any invoices on behalf of the
parent company. All sale proceeds generated by the efforts of the
liaison office must be directly paid to the foreign parent company by
means of proper banking channels or negotiable instruments such as cheques
(checks) and demand drafts. A liaison office cannot also charge any
commission from Indian customers for providing liaison
A liaison office
can carry on the following activities:
Collecting information about possible market opportunities
and providing information about the company and its products to
prospective Indian customers.
Promotion of export/import from/to
India and also facilitate technical/ financial collaboration between
parent company and companies in India.
Seminars/exhibitions/fairs and other events in India.
Click here for
more information on Entry Strategies for Foreign