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What is the process for setting up a liaison office in India?


legaladda1

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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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