Liaison Office Registration In Kolkata

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Frequently Asked Qustion

Can Foreign Insurance Companies / Banks set up Liaison Office in India?
What is a liaison office & Who can set-up a liaison office?
What are the conditions /requirements for opening a Liaison office in India?
Who approves the setting up of a liaison office?

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

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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.

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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.

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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.

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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.

 

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