ComplianceSupport

A Liaison office or a representative office act as a channel of communication between Head Office abroad and parties in India.

A Liaison office or a representative office act as a channel of communication between Head Office abroad and parties in India.

Permitted Activities:

A Liaison Office can undertake the following activities in India:

1. Representing in India the parent company / group compa­nies.
2. Promoting export / import from / to India.
3. Promoting technical/financial collaborations be­tween parent/group companies and companies in India.
4. Acting as a communication channel between the parent company and Indian companies.

Hence It is not allowed to undertake any business activity in India and cannot earn any income in India. Even expenses of Liaison office shall be allowed by way of inward remittance from parent company

Track Record

The parent Company should have a profit making track record during the immediately preceding three financial years.

The net worth [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 should] not be less than USD 50,000 or its equivalent.

Annual Compliance:

-Annual Activity Certificates from their auditor to be submitted to the RBI, The DGP and the Directorate of Income Tax within 6 months of the Balance Sheet date.