{"id":34371,"date":"2021-08-13T13:57:40","date_gmt":"2021-08-13T08:27:40","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=34371"},"modified":"2021-08-13T14:27:44","modified_gmt":"2021-08-13T08:57:44","slug":"liaison-office-registration-process","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/","title":{"rendered":"Liaison Office Registration Process: Explained"},"content":{"rendered":"\n<p class=\"has-drop-cap\">A company that is settled abroad has the option to have offices within the Indian Territory that are not primarily subsidiary entities. Subject to the RBI\u2019s norms, an overseas entity can have a liaison office, project office, our branch office. The obligations of such an office are limited as they are bound to perform certain prescribed tasks. This write-up will unveil the legalities related to <a href=\"https:\/\/corpbiz.io\/liaison-office-registration-india\"><strong>liaison office registration<\/strong><\/a> along with some fundamental aspects. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/#What_is_the_role_of_Liaison_Office\" >What is the role of Liaison Office?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/#What_is_the_role_of_Branch_Office\" >What is the role of Branch Office?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/#What_is_the_role_of_Project_Office\" >What is the role of Project Office?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/#Prerequisites_to_be_addressed_for_the_Establishment_of_a_liaison_office_in_India\" >Prerequisites to be addressed for the Establishment of a\nliaison office in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/#Mandatory_Documents_for_establishing_Liaison_Office_in_India\" >Mandatory Documents for establishing Liaison Office in\nIndia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/liaison-office-registration-process\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_role_of_Liaison_Office\"><\/span>What is the role of Liaison Office? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A liaison office refers to a business place that fosters close working relationships between the main organization situated &amp; the business entities in India.<\/p>\n\n\n\n<p>The liaison office is\ncommonly known as Representative Office. Liaison offices lack the rights to\ngenerate income in India as they are not legally permitted to undertake any\nsort of business activity.&nbsp;<\/p>\n\n\n\n<p><em><strong>At present, liaison offices are only allowed to perform the following undertakings<\/strong><\/em><\/p>\n\n\n\n<ul><li>Represent the overseas organization in India.<\/li><li>Incentivize export from or import to India.<\/li><li>Foster financial\/ technical collaboration between primary companies and Indian entities.<\/li><li>Act as a viable source of communication for Indian entities and parent companies <\/li><\/ul>\n\n\n\n<div class=\"shadow1\"> The establishment of liaison office\/ project office\/ branch office in India by overseas entities is governed in accordance with norms of Section 6(6), FEMA Act, 1999. The liaison office adheres to a different set of obligations and duties compared to the project office\/ branch office. Therefore, it is essential to get accustomed to the role of the project office\/ branch office before knowing the legalities of liaison office registration. <\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_role_of_Branch_Office\"><\/span>What is the role of Branch Office?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A <a href=\"https:\/\/corpbiz.io\/branch-office-registration-india\"><strong>branch office<\/strong><\/a> replicates the undertaking performed by the patent offices. Such offices are meant to undertake identical business operations as the overseas parent entity at different locations in India.<\/p>\n\n\n\n<p>Unlike liaison offices,\nbranch offices can perform similar business activities as the parent company.\nThey can perform the trading related undertaking that a parent company does.<\/p>\n\n\n\n<p>The prominent limitation being carrying out manufacturing tasks; however, the same can be sub-contracted to third-party manufacturers.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/complete-guide-for-registering-a-foreign-company-in-india\/\">The Complete Guide for Registering a Foreign Company In India <\/a><\/mark><\/p>\n\n\n\n<p><strong><em>The branch\noffices are allowed to perform the given undertakings in India:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Facilitating consultancy or professional services<\/li><li>Incentivize export from or Import to India<\/li><li>Conducting research in the concerned field<\/li><li>Incentivize financial\/ technical collaboration between primary\nor group entities and Indian companies<\/li><li>Representing the entity in India &amp; acting as a mediator for\ntrading<\/li><li>Facilitating services in IT &amp; software development in India<\/li><li>Facilitating technical bolster for the products rendered by the\nparent organization<\/li><li>Function as an overseas airline or shipping corporation<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_role_of_Project_Office\"><\/span>What is the role of Project Office?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Reserve Bank permits\nthe foreign parent organization to have project offices in India to represent\nthe intention of the primary entity executing projects in India, excluding the\nLiaison Office.<\/p>\n\n\n\n<p>The project office can only perform the undertaking relating to the project. The fundamental obligation for opening a project office in India is that the primary organization must have availed a contract from an Indian entity.&nbsp;<\/p>\n\n\n\n<p><strong><em>The table below manifest the scenario in which the aforesaid offices can undertake inward remittances:<\/em><\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  Liaison Office\n  <\/td><td>\n  Only receive inward\n  remittances from the main entity via conventional banking platforms. \n  <\/td><\/tr><tr><td>\n  Branch Office\n  <\/td><td>\n  All the expenditures\n  of the branch office will be addressed using the funds coming from foreign\n  parent company or available source of the income of the branch. \n  <\/td><\/tr><tr><td>\n  Project Office\n  <\/td><td>\n  Only receive inward\n  remittances from the main company via conventional banking platforms. \n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prerequisites_to_be_addressed_for_the_Establishment_of_a_liaison_office_in_India\"><\/span>Prerequisites to be addressed for the Establishment of a\nliaison office in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The parent organization\nseeking to open a Liaison or Branch Office in India must avail mandatory\nconsent from RBI under the provision of FEMA Act, 1999<\/p>\n\n\n\n<p>For this purpose, the\nRBI mandates the submission of applications in Form FNC under two routes:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reserve Bank Route<\/h3>\n\n\n\n<p>If the core business of\nthe overseas parent entity falls under the 100 sectors where 100% FDI is\nallowed under the automatic route, the Reserve Bank will consider the\napplication.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Government Route<\/h3>\n\n\n\n<p>If the principal business of the overseas parent entity does not come under the 100 sectors where 100% FDI is allowed under the automatic router or the application is from entities that are functioning as NPO \/NGOs \/ Government forums \/departments, the Reserve Bank shall consider such application in consultation with the Finance Ministry, GOI.&nbsp; <\/p>\n\n\n\n<p>In addition to that, the <em><strong>Reserve Bank<\/strong><\/em><sup><a href=\"https:\/\/www.rbi.org.in\/\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> will also consider the below-mentioned criteria while legalizing the liaison or branch office of a parent company. <\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  &nbsp;\n  <\/td><td>\n  <strong><em>Overall Worth<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Track Record<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  <strong><em>Liaison Office<\/em><\/strong>\n  <\/td><td>\n  Higher than or equal\n  to US dollar 50,000 or its equivalent\n  <\/td><td>\n  A track record\n  manifesting the profit during the last preceding three financial years in the\n  home country. \n  <\/td><\/tr><tr><td>\n  <strong><em>Branch Office<\/em><\/strong>\n  <\/td><td>\n  Higher than or equal\n  to US dollar 100000or its equivalent\n  <\/td><td>\n  A track record\n  manifesting profit during the last 5 years in the home country. \n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p>Upon meeting the\neligibility criteria, the parent entity must furnish a form FNC (according to\nAnnex B of Foreign Exchange Management Regulations, 2016) for setting up a\nLiaison Office in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_Documents_for_establishing_Liaison_Office_in_India\"><\/span>Mandatory Documents for establishing Liaison Office in\nIndia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Certificate of Incorporation, MOA, AOA copy authenticated by the\nNotary public in the nation of Registration. The documents should be in the\nEnglish language; if not, then the same ought to be translated, notarized,\n&amp; validated by the Consulate in the home country.<\/li><li>The audited balance sheet for the last three years or account\nstatement authenticated by any Certified Public Accountant (CPA) or Registered\nAccounts Practitioner manifesting the net worth.<\/li><li>Bank report manifesting the numbers of years of services availed\nby the applicant as well as the track record.<\/li><li>Power of Attorney drafted in favour of the Form FNC\u2019s signatory\nin case of the head of the foreign Establishment is not enclosing the signature\nin Form FNC.<\/li><li>All details of the undertaking are performed on the project\noffice situated in India.<\/li><li>Residence\u2019s proof of the authorized personnel<\/li><li>Copy of passport manifesting the detail of the authorized\npersonnel<\/li><li>A letter declaring that the entity will open an account in the\ndesignated bank of India<\/li><\/ul>\n\n\n\n<p><strong><em>The below-mentioned table highlights the validity and time frame for registration:<\/em><\/strong><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Particulars<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Time frame for\n  Registration<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Registration\u2019s\n  validity <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Validity of Approval\n  for setting up in Office<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Liaison Office\n  <\/td><td>\n  40-45 Days\n  <\/td><td>\n  Three\n  Years&nbsp;&nbsp;Exception&nbsp;\u2013 Non-banking Financial Company &amp; Construction\n  Development\u2013 Two Years\n  <\/td><td>\n  6 months starting from\n  approval\u2019s date\n  <\/td><\/tr><tr><td>\n  Branch Office\n  <\/td><td>\n  40-45 Days\n  <\/td><td>\n  No Specific\n  timeline, &nbsp;generally 2-3 years\n  <\/td><td>\n  6 months starting\n  from approval\u2019s date\n  <\/td><\/tr><tr><td>\n  Project Office\n  <\/td><td>\n  10-15 Days\n  <\/td><td>\n  Depends on timeline\n  of the project\n  <\/td><td>\n  6 months starting\n  from approval\u2019s date\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It could be a daunting affair for any global business to thrive seamlessly without the presence of a liaison office. Despite their limited scope of work, they play a vital role in the development of an organization. Indeed, just like other entities in India, these firms are bound to align themselves with certain rules and regulations underpinned by the respective regulatory authority.&nbsp; <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/norms-to-establishment-a-foreign-company-in-india\/\">Norms to Establishment a Foreign Company in India <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A company that is settled abroad has the option to have offices within the Indian Territory that are not primarily subsidiary entities. Subject to the RBI\u2019s norms, an overseas entity can have a liaison office, project office, our branch office. The obligations of such an office are limited as they are bound to perform certain [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":34389,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1915],"tags":[1914],"acf":{"service_id":"348"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4148,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34371"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=34371"}],"version-history":[{"count":19,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34371\/revisions"}],"predecessor-version":[{"id":34394,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34371\/revisions\/34394"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/34389"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=34371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=34371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=34371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}