Branch & Liaison Offices in India
Establish your business presence in India through Branch Offices or Liaison Offices with expert guidance from Akshay Vora & Associates.
Understanding Branch & Liaison Offices
Branch Offices and Liaison Offices are two distinct forms of business presence that foreign companies can establish in India without incorporating a separate legal entity.
Branch Office (BO)
A Branch Office represents a foreign company in India and can engage in business activities such as export/import, professional or consultancy services, research, and technical support for products supplied by the parent company.
Liaison Office (LO)
A Liaison Office acts as a representative office for the foreign parent company. It can promote business interests, explore market opportunities, and facilitate technical/financial collaborations, but cannot engage in any commercial, trading, or industrial activity.
Branch Office vs. Liaison Office
Understanding the key differences between these two business structures is crucial for making the right choice.
Eligibility Requirements
Foreign companies must meet certain criteria to establish Branch or Liaison Offices in India.
Branch Office Eligibility
- The foreign company should have a profitable track record for the preceding 5 years in the home country
- Net worth of not less than USD 100,000 or equivalent
- The business activity proposed should be within the permitted sectors
- Compliance with RBI guidelines and FEMA regulations
Liaison Office Eligibility
- The foreign company should have a profitable track record for the preceding 3 years in the home country
- Net worth of not less than USD 50,000 or equivalent
- The purpose should be limited to representing the parent company and undertaking permitted activities
- Compliance with RBI guidelines and FEMA regulations
Establishment Process
Our team guides you through every step of establishing your Branch or Liaison Office in India.
Initial Consultation
We assess your business needs and objectives to determine the most suitable structure for your Indian presence.
Documentation Preparation
We help prepare all necessary documents, including Form FNC, Certificate of Incorporation, and financial statements.
RBI Application
We submit the application to the Reserve Bank of India (RBI) through an Authorized Dealer Category-I bank.
RBI Approval
We follow up with the RBI to obtain approval for establishing the Branch or Liaison Office.
Post-Approval Registrations
We handle all post-approval registrations, including PAN, TAN, GST (for Branch Office), and other statutory requirements.
Bank Account Opening
We assist in opening a bank account for the Branch or Liaison Office in India.
Ongoing Compliance
We provide ongoing compliance support for annual filings, RBI reporting, and other regulatory requirements.
Ongoing Compliance Requirements
Branch and Liaison Offices must adhere to various regulatory and compliance requirements.
Annual Activity Certificate
Annual submission of an Activity Certificate from a Chartered Accountant to the RBI through the AD Category-I bank.
Annual Financial Statements
Filing of audited financial statements with the Registrar of Companies (ROC) and tax authorities.
Tax Compliance
For Branch Offices, timely filing of income tax returns and other tax-related documents.
FEMA Compliance
Adherence to Foreign Exchange Management Act (FEMA) regulations for foreign remittances and transactions.
Ready to Establish Your Branch or Liaison Office in India?
Our team of experts will guide you through every step of the process, ensuring a smooth and compliant establishment of your Indian presence.