Service Details
Liaison Office (LO)
For foreign companies seeking a representative presence in India — without conducting any business operations.
What is a Liaison Office?
A Liaison Office (LO) is a non-commercial, non-income-generating setup meant to act as a communication channel between the parent company and Indian stakeholders. It is strictly governed by RBI and FEMA rules, and is suitable for market research, brand building, and coordination only.
Why Use a Liaison Office in India
- Ideal for initial market exploration before committing investment
- Allows foreign HQ to build relationships with customers or partners
- Useful for compliance, quality control, or group reporting purposes
- Low overhead and limited tax exposure
- No need to incorporate a separate Indian entity
How We Help with LO Setup & Compliance
- Drafting and filing of LO Setup application with the AD Bank/MCA
- Assisting with AD Bank due diligence and RBI approval
- Preparing parent company documentation, board resolution, financials
- Coordinating local office lease and PAN/TAN applications
- Ensuring FEMA compliance
- Advising on permissible activities and legal boundaries
- Supporting closure or upgrade to BO/WOS when needed
Common Use Cases
- Foreign banks or financial institutions
- Non-profits or universities for outreach
- Trade promotion or cultural exchange
- Group companies tracking Indian JV or investee performance
FAQs
1. Can a Liaison Office open a bank account?
Yes — but only for administrative expenses, with AD Bank restrictions.
2. Can we invoice or sign contracts through LO?
No. LOs cannot earn income, sign contracts, or engage in commercial activity.
3. What’s the typical validity of an LO license?
3 years (renewable, depending on sector and activity)