Entity · Liaison Office
Liaison Office Registration in India
A liaison office (also called a representative office) lets a foreign company maintain a presence in India for market research, promotion and coordination — without earning any income. It is funded entirely by the parent and approved by the RBI through your AD bank.
Who it’s for
Consider a liaison (representative) office if you want a non-commercial presence in India to explore the market, build relationships and coordinate with your parent — with no Indian income — and you meet the 3-year profit track record and USD 50,000 net-worth test. A liaison office cannot earn income; for revenue-generating activity use a branch office or a subsidiary.
What a liaison office can and cannot do
A liaison office links the foreign parent with Indian customers, suppliers and regulators. It is useful for understanding the market before committing to an income-earning entity; it is not a way to trade without a subsidiary.
Permitted representative activities
- Market research and promotion of the parent’s business
- Export/import liaison without undertaking the trade itself
- Parent-India coordination and communication
- Promoting technical or financial collaboration within the permitted scope
Prohibited activities
- Commercial, trading or industrial activities in India
- Earning income, invoicing customers or receiving trading revenue
- Funding local expenses from business income rather than inward remittance from the parent
Eligibility
- Profit-making track record for the 3 preceding years
- Net worth of USD 50,000 or more, evidenced by the required financial records
- Parent-company documents and a defined representative-only scope
- AD Category-I bank review, with prior RBI/government clearance where required
How to register a liaison office in India
- 1
Apply in Form FNC to your AD Category-I bank
Confirm the permitted activities and eligibility, then submit Form FNC with the parent’s incorporation documents, financial statements, authorised signatory details and proposed India office information.
- 2
AD-bank review and RBI referral where required
The AD Category-I bank reviews the application under the delegated approval framework and forwards it to the RBI where prior approval is required. Sensitive sectors and specified applicant circumstances need additional scrutiny.
- 3
Obtain the Unique Identification Number (UIN)
The office is allotted a UIN through the applicable RBI/AD-bank process. Complete the required establishment notifications and retain the approval or general-permission records.
- 4
Set up registrations and the office bank account
Register PAN and TAN, complete the applicable foreign-company registration filings, and open the office bank account. Review GST applicability with your adviser; a liaison office cannot use registration to undertake income-earning activities.
- 5
File the annual Annual Activity Certificate (AAC)
Have the accounts audited and submit the AAC with audited accounts to the designated AD bank and relevant authorities as applicable. Confirm the filing recipients and deadlines for your office; ongoing tax and other statutory filings remain separate.
Documents required
- Certificate of incorporation / registration of the foreign parent — apostilled (Hague countries) or attested (e.g. UAE: MOFA + Indian mission)
- Charter documents (Memorandum & Articles or equivalent) — apostilled/attested
- Latest audited financial statements of the parent (last 3 years) and a net-worth certificate from the parent’s auditor/CPA
- Board resolution approving the India office and the authorised signatory — apostilled/attested
- Passport and address proof of the authorised signatory — apostilled/attested
- Details of proposed activities, business plan and the India office address
- Banker’s report from the parent’s bank (commonly requested by the AD bank)
Documents from non-Hague countries (e.g. UAE) are attested via MOFA + the Indian mission rather than apostilled.
Tenure & renewal
The usual tenure is 3 years, renewable through the designated AD bank subject to applicable conditions. Sector-specific exceptions can apply. Plan renewal before the approval expires and keep the office’s activity and remittance records ready for review.
| Point to monitor | What it means |
|---|---|
| Usual tenure | 3 years, renewable subject to conditions |
| Funding | Entirely inward remittances from the parent |
| Activity limits | Representative-only; no income-earning operations |
| Annual record | Audited accounts and AAC, plus applicable statutory filings |
Compliance & closure
A permitted representative-only liaison office ordinarily earns no taxable business income. This is not an automatic tax exemption for every office: actual activity, treaty PE exposure and applicable return-filing obligations must still be checked. Do not treat an AAC as a substitute for tax filings.
- Maintain audited accounts and file the annual AAC with the designated AD bank and relevant authorities as applicable
- Maintain PAN/TAN, applicable foreign-company filings and tax submissions
- Close through the AD bank with a Chartered Accountant’s certificate, final AAC where applicable and settlement of obligations
- Cancel applicable registrations and repatriate the remaining balance after tax checks, audit and required clearance
Indicative cost & timeline
| Item | Indicative guide |
|---|---|
| Setup (professional fees) | USD 2,500–5,000 |
| Annual compliance | USD 1,500–4,500 |
| Timeline | Typically around 4–8 weeks for RBI/AD-bank approval once your documents are complete and apostilled — indicative, and dependent on the activities, sector and any RBI referral. |
Indicative only — we confirm a fixed fee after scoping your parent company, activities and documents.
Compare your India entry options
- Branch office registration in India — specified commercial activities
- Project office registration in India — a specific Indian contract
- Liaison, branch and project office comparison
- Wholly owned subsidiary in India — a separate Indian company
- Company registration in India for foreign businesses
Frequently asked questions
How do I register a liaison office in India?
Can a liaison office earn income in India?
What is the eligibility for a liaison office?
How long can a liaison office operate?
Liaison office vs branch office?
How much does a liaison office in India cost and how long does it take?
Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last reviewed: October 2026. General guidance, not tax or legal advice on your facts; confirm the applicable approval, filing and treaty requirements.
Planning a representative office in India?
We help review eligibility, define the permitted liaison activities and coordinate approval, renewal and annual compliance.