What is the process for setting up a liaison office in India?
To set up a liaison office in India as part of Foreign Company Registration in India and Incorporation of Foreign Owned Company in India, follow these steps:
1. Obtain Reserve Bank of India (RBI) Approval:
- Submit an application to the RBI for setting up a liaison office.
- Provide a detailed business plan and justification for the liaison office.
2. Apply to the Registrar of Companies (ROC):
- File an application with the ROC to register the liaison office.
- Include necessary documents such as:
- Parent company's certificate of incorporation.
- Board resolution for opening the liaison office.
- Proof of parent company's business activities.
3. Submit Required Documents:
- Parent company's financial statements.
- Proof of the liaison office’s address in India.
- Details of the proposed office's operations.
4. Obtain Director Identification Number (DIN):
- If applicable, ensure any foreign directors obtain a DIN.
5. Open a Bank Account:
- Open a bank account in India for the liaison office’s operational needs.
6. Adhere to Compliance Requirements:
- Follow the guidelines under the Companies Act and FEMA regulations.
- Ensure regular filings and compliance with tax and labor laws.
7. Submit Regular Reports:
- Provide periodic reports to the RBI and ROC about the liaison office’s activities.
By following these steps, you ensure compliance with regulatory requirements for establishing a liaison office in India.
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