Setup a Liaison Office in India | Savlana Init

India Entry · Liaison / Representative Office

Liaison Office Setup — Represent Your Brand in India.

Set up a Liaison (Representative) Office in India with CA-assisted RBI Form FNC filing, ROC registration, annual activity certification, and ongoing FEMA compliance management.

A Liaison Office — also known as a Representative Office — is the most restricted but simplest form of foreign company presence in India. It is established under FEMA regulations with prior approval from the Reserve Bank of India and serves purely to represent the parent company in India. A Liaison Office cannot undertake any commercial or revenue-generating activities — no invoicing, no trading, no services for fees. All activities are limited to representing the parent, facilitating communication, and conducting market research.

The entire funding of the Liaison Office must come from inward remittances from the parent company in foreign exchange. It cannot earn any income from Indian sources. RBI approval for a Liaison Office is valid for 3 years, renewable on application. The parent company must have a minimum net worth of USD 50,000 and a profitable track record of at least 3 years to be eligible. Post-approval, the Liaison Office must register with the Registrar of Companies (ROC) in Form FC-1.

Annual compliance consists primarily of filing an Annual Activity Certificate (AAC) with the AD Bank, certified by a Chartered Accountant, confirming that all activities were within permitted scope and all costs were met from foreign inward remittances. We handle the complete RBI approval, ROC registration, and ongoing annual compliance, including the AAC and ROC Form FC-3 filings.

Our Liaison Office Services

RBI Form FNC Application

Preparation and submission of Form FNC to the RBI through the Authorized Dealer Bank for prior approval to establish the Liaison Office.

Parent Company Document Coordination

Collecting and apostilling audited financials, incorporation documents, banker's report, and board resolution of the foreign parent company.

ROC Registration (Form FC-1)

Registration of the Liaison Office with the Registrar of Companies in Form FC-1 within 30 days of receiving RBI approval.

PAN Registration

Obtaining a PAN for the Liaison Office with the Income Tax Department for compliance with Indian tax withholding obligations.

Bank Account Opening Assistance

Assistance with opening a rupee current account in the Liaison Office's name with the AD bank to receive and deploy foreign remittances.

Annual Activity Certificate (AAC)

Preparation and CA-certification of the Annual Activity Certificate to be filed with the AD Bank by 30 September each year.

ROC Form FC-3 Filing

Filing of audited financial accounts of the Liaison Office with the ROC in Form FC-3 within 6 months of the financial year end.

Renewal & Closure Advisory

Advisory and filing support for renewal of the 3-year RBI approval or closure of the Liaison Office if operations are discontinued.

Our Process

Eligibility Check & Structure Advice

We confirm the parent company meets RBI eligibility (net worth and profitability) and advise on whether a Liaison Office or Branch Office better suits your goals.

Parent Document Collection

Apostilled audited financials, board resolution, certificate of incorporation, and banker's report of the foreign parent are compiled.

RBI Form FNC Submission

Form FNC is submitted through the AD Bank. RBI approval is typically received within 4–6 weeks with a 3-year validity.

ROC Registration & PAN

Form FC-1 is filed with the ROC within 30 days of RBI approval, and PAN is obtained for the Liaison Office.

Annual AAC & FC-3 Compliance

AAC is certified and filed with the AD Bank annually; FC-3 is filed with the ROC; renewal is managed before the 3-year approval expires.

Why It Matters

✓Lowest-cost India presence — no commercial activity, no Indian taxes on income

✓No incorporation required — extension of foreign parent

✓Suitable for market research and promotional activities

✓Can hire local staff funded through foreign remittances

✓RBI Form FNC and ROC Form FC-1 filing managed by us

✓Annual Activity Certificate certified and filed on time

✓Renewal before 3-year expiry handled proactively

✓Advisory on upgrade to Branch Office or subsidiary when ready

Frequently Asked Questions

A Liaison Office (also called a Representative Office) is a presence established in India by a foreign company purely to represent and liaise on behalf of the parent. It cannot undertake any commercial, trading, or industrial activities and cannot earn any income in India. Permitted activities include representing the parent, promoting exports/imports, facilitating technical/financial collaborations, and conducting market research.

A Liaison Office cannot earn any income in India. All expenses — office rent, salaries, utilities — must be funded entirely through inward remittances from the parent company abroad in foreign exchange. No income from Indian sources is permitted. The Authorized Dealer Bank monitors that all expenses are met only from foreign remittances.

A foreign company must file Form FNC through an Authorized Dealer Bank to obtain RBI approval before establishing a Liaison Office in India. The application requires the parent's audited financial statements (minimum net worth of USD 50,000 or equivalent), certificate of incorporation, banker's report, and a description of activities proposed to be undertaken. Approval is typically valid for 3 years and must be renewed.

Yes. A Liaison Office can hire employees in India. However, all salaries and employee costs must be funded from inward remittances from the parent company. Employees of the Liaison Office are subject to Indian income tax on their salaries, and the Liaison Office must deduct TDS and file employer returns with the Income Tax Department.

A Liaison Office must file an Annual Activity Certificate (AAC) with the Authorized Dealer Bank by 30 September each year, certifying that activities were within the permitted scope and all expenses were met from foreign remittances. The AAC must be certified by a Chartered Accountant. The Liaison Office must also file its financial statements with the ROC in Form FC-3 within 6 months of year end.

RBI approval for a Liaison Office is initially granted for a period of 3 years. It can be renewed for further periods of 3 years at a time by applying through the AD Bank before expiry. If the parent company wishes to commence commercial operations in India, it must set up a Branch Office or incorporate a subsidiary — the Liaison Office approval cannot be upgraded to a commercial presence directly.

Ready to set up a Liaison Office in India?

We manage the complete RBI approval, ROC registration, PAN, annual AAC, and FC-3 filing — so your India representative presence is properly established and compliant throughout.