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Liaison Office Registration
Liaison Office Registration
With Make In India Popularity Lots Of Foreign Companies Showing Their Interest in Opening Company in India Reason Behind Is, India is Fastest Growing Market and it have One of Best Human Resources. As the name Liaison Office Registration in India is registered with purpose of understanding India Market, work opportunities. The Liaison office helps business to understand India market to develop strategies to grab business potential. The Liaison office is not allowed to make profit in India, it has to only make expense form remittances received form its foreign head office. Simply saying Liaison office is not allowed to earn income in India.
The permission for setting up Liaison office in India is approved by the RBI, but as per the recent changes the applications for Liaison office are routed through the A.D i.e. Authorized Dealers.
Highlights of Liaison Office Registration in India
- Company shall have same name as parent company
- Governing body for Liaison office in India is RBI (Reserve Bank of India)
- There is no ownership of Liaison office in India , it is just extension of the exiting company in the foreign country.
- Liaison office is allowed to make expense from Fund received from head office
- It is suitable for companies who looking for testing Indian market
- Liaision office cannot under take business in India and make Profit
Activities Permitted to Liaison office in India
Liaison office can act as a communication channel between the foreign head office and parties in India. However while doing so the office need to take care that it cannot take business activity in India and make profit in India.
- Representing in India the parent company / group companies.
- Promoting export / import from / to India.
- Promoting technical/financial collaborations between parent/group companies and companies in India.
- Promoting technical/financial collaborations between parent/group companies and companies in India.
Prerequisite for Liaison office in India
Profitable Company
The company looking to start a Liaison office in India shall have a profitable track record during immediately preceding three years in the home country.
Net Worth
The Net Worth i.e total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name shall be not less then of equal to USD 50000/-
Compliances For - Liaison Office of a Foreign Company in India
- Filling of Annual Return Compliances and Balance sheet with the Registrar of Companies.
- Maintenance of complete Books of Account for the activity carryout in India.
- File Annual Activity Certificates from the Auditors to be submitted to the Reserve Bank of India,
- Audited Financial Statements including Receipts and Payments A/C shall be filed with the Directorate of Income Tax.
- Intimating any change in constitution of Foreign Company to Reserve Bank of India & ROC
- Intimating any change in Directors of Foreign Company to Reserve Bank of India & ROC