What are the Steps of Opening a Liaison Office in India?
Register your Liaison Office in India quickly and hassle-free with Numbro – complete the process online in just 3 simple steps.
STEP 3
We help obtain necessary approvals, prepare compliance charts as per applicable laws, monitor regulations, and report to the concerned authorities.
STEP 3
We help obtain necessary approvals, prepare compliance charts as per applicable laws, monitor regulations, and report to the concerned authorities.
Liaison Office for Exploring New Business Opportunities
Liaison Office (LO) in India
For foreign companies planning to explore business opportunities in India, setting up a Liaison Office (LO) is often the most effective option.
The main purpose of establishing an LO is to:
- Explore and gather relevant market information
- Facilitate exports and business communication
- Create a local presence while maintaining global outlook
- A Liaison Office is also called a Representative Office. It can only perform liaison activities, meaning it acts as a communication channel between the Head Office abroad and business parties in India.
Wholly Owned Subsidiary (WOS)
A Wholly Owned Subsidiary is a company incorporated in India that is 100% owned by the parent company.
It gives complete control to the foreign parent company
The parent company appoints the board of directors
The subsidiary can operate in the same industry or even in a completely different sector
This structure is suitable for foreign companies looking for a long-term business presence in India.
FEMA Definition of Liaison Office:
‘Liaison Office’ means a place of business to act as a channel of communication between the principal place of business or Head Office or by whatever name called and entities in India but which does not undertake any commercial /trading/ industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.
