Liaison Office Registration In Kolkata
Liaison Office Registration
A Liaison Office could be established with the approval of the government of India. The role of Liaison Office is limited to collection of information, promotion of exports/imports and facilitate technical/financial collaborations.
Liaison office cannot undertake any commercial activity directly or indirectly.
Setting up a Liaison Office or Representative Office
RBI prescribes the criteria for setting up a Liaison office or Representative Office in India, which are as follows:
- It is essential to have a profit making record in the immediately preceding 3 financial years in the home country, and the net value should be more than USD 50,000.
- In case, the above condition is not satisfied by the subsidiary company, a letter of comfort is to be submitted by the parent company which satisfies the above condition.
- Specific approval of RBI under FEMA 1999 and Insurance Regulatory and Development Authority (IRDA) is required.
- A designated Authorised Dealer Category–I Bank needs to forward an application for establishing an office to the RBI.
- The office will be given a Unique Identification Number by RBI.
- Along with the Application, English version of the Certificate of Incorporation/Registration or MOA & AOA (attested by the Indian Embassy/Notary Public), required documents should also be filed. Latest Audited Balance Sheet of the applicant entity should also be filed in the Country of Registration.
SIMPLE & TRANSPARENT PRICING
Important Points to Register Liaison Office
Net Worth Requirement
The foreign parent company must have a profitable track record of three years in a row & the net worth must be more than $ 50,000 attested by their auditors.
No Income Generating Activity
The liaison office can not earn any income in India, and the parent company must finance all its operations. An undertaking from the parent company is required.
Name & New Office
The name must be same as that of the foreign parent company, and for each new office of such liaison office, a new approval is required from RBI with justification.
Taxation in India
The income tax on a Liaison Office can be imposed by Indian tax authorities when it is established that the transaction amounts to commercial operation through PE.
We are 24/7 online on whatsapp
Have any queries? Chat right away!