Introduction to Liaison & Branch Offices

If a foreign entity is thinking of establishing an office in India, but not sure about the market then they can incorporate a liaison office. A liaison office is also known as a representative office which carries out activities which do not generate profit.

Liaison Office Operations

The following operations are permitted for a liaison office in India:

Liaison Activates- Acts as a major channel of communication between the foreign parent company and other parties in India.
Carry out any form of research and development activities for the foreign parent company.

Requirements/ Documentation for a Liaison Office

Digital Signature Certificate (DSC)- If you require to act on behalf of the liaison office, then you must secure the Digital Signature Certificate (DSC).
Apostilled Copy of the Passport- You must provide an apostilled copy of the passport.
Apostilled Copy of Residence Proof- You must provide an apostilled copy of your residence proof (utility bills or bank statements). Your address proof must not be more than two months old.
Your Email Id and Mobile Number.
Authorized Representative Details- An authorized representative would act on behalf of the liaison office. Such details would include the authorized representative name, address (utility bills such as electricity or water) and ID (passport or any other valid identification document).
Certified and Apostilled copy of the certificate of incorporation, memorandum of association (MOA) and articles of association (AOA) of the foreign parent company.
Audited balance sheet of the foreign parent company.
Bankers’ report from the foreign parent company- A report from the bank stating the affairs of the foreign parent company.
List of directors of the foreign parent company.
Copy of the Board meeting resolution from the foreign parent company for setting up a liaison office in India.

Once you have all the documents, we shall go ahead and incorporate your liaison office in India.

Branch Office Registration

A foreign entity or foreign business can be incorporated in India by setting up a branch office. If a foreign business wants to set up operations with an intention to make profits, then a branch office is the most suitable entity. You can establish a branch office in India, if your company is compliant with the provisions of the Companies Act, 2013 and respective rules.

We also assist with opening branch offices in jurisdictions such as Singapore.

Branch Office Operations

The following operations are permitted for a branch office in India:

Export and Import of Goods.
Carrying out any professional or consultancy business.
Carrying out research-based activities for the foreign parent company.
Carrying out information technology services and development of software in India.

Requirements/ Documentation for a Branch Office

Digital Signature Certificate (DSC)- If you are required to act on behalf of the branch office, then you must secure the Digital Signature Certificate (DSC).
Apostilled Copy of the Passport- You must provide an apostilled copy of the passport.
Apostilled Copy of Residence Proof- You must provide an apostilled copy of your residence proof (utility bills or bank statements). Your address proof must not be more than two months old.
Your Email Id and Mobile Number.
Authorized Representative Details- An authorized representative would act on behalf of the branch office. Such details would include the authorized representative name, address (utility bills such as electricity or water) and ID (passport or any other valid identification document).
Certified and Apostilled copy of the certificate of incorporation, memorandum of association (MOA) and articles of association (AOA) of the foreign parent company.
Audited balance sheet of the foreign parent company.
Bankers’ report from the foreign parent company- A report from the bank stating the affairs of the foreign parent company.
List of directors of the foreign parent company.
Copy of the Board meeting resolution from the foreign parent company for setting up a branch office in India.

Once you have all the documents, we shall go ahead and incorporate your branch office in India.

Clients who we have worked with recently

Insights/ FAQ

1. What are the main criteria for registering a liaison office in India?

The following criteria must be sufficed for registering a liaison office in India:

The foreign parent company must have a profitability track record for the past three years.
The foreign parent company must have a net worth of not less than USD 50,000. Such net worth has to be certified by a public accountant.
A certificate of comfort for opening the liaison office is required from the foreign parent company.

2. Does a liaison office require to pay taxes?

No taxes are payable by the liaison office, as no profits are generated by the liaison office.

3. What are the main routes of foreign investment for a liaison office?

The main routes of foreign investment for a liaison office are:

Automatic Route- 100% foreign investment is allowed through this route.
Approval Route- Government Approval is required for any investment through the approval route.

4. What is the difference between a branch office and a liaison office?

A branch office is allowed to carry out activities which generate profits. A branch office would have to pay taxes in India. A representative office in India is not allowed to carry out any form of profits making activities. As no profit is earned by the representative office, no taxes have to be paid.

5. What are the main criteria for registering a branch office in India?

The following criteria must be sufficed for registering a branch office in India:

The foreign parent company must have a profitability track record for the past five years.
The foreign parent company must have a net worth of not less than USD 100,000. Such net worth must be certified by a public accountant.
A certificate of comfort for opening the branch office is required from the foreign parent company.

6. What are the main routes of foreign investment for a branch office?

The main routes of foreign investment for a branch office is the:

Automatic Route- 100% foreign investment is allowed through this route.
Approval Route- Government Approval is required for any investment through the approval route.