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liasion office

purposes of liasion office

Posted By admin on December 25, 2013 No Comments

India allows a liaison office following activities:

  • Representing the parent Company/group companies in India
  • Coordinating and communicating with Indian companies
  • Promoting export/ import from/ to India
  • Promoting technical / financial collaborations between the parent / group companies, and companies of India.

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what is a liasion office?

Posted By admin on December 25, 2013 No Comments

ABOUT LIAISON OFFCES

Companies which are incorporated outside India can establish liaison office in India with the specific approval of the Reserve Bank. A Liaison Office (also known as Representative office ) can undertake only liaison activities, i.e. it can act as a channel of communication between Head Office abroad and parties in India. It is not allowed to undertake any business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of foreign exchange from the Head Office outside India. The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to the prospective Indian customers. Permission to set up such offices is initially granted for a period of 3 years and this may be extended from time to time by the Regional Office of RBI under whose jurisdiction the office is set up.

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