Liaison Office Setup in India | N D Savla & Associates
Liaison Office · Nashik, Maharashtra

Liaison Office Setup in India — Present without trading.

Establishing representative and liaison offices in India for foreign companies exploring the market, with the approval, registration and annual certification handled end to end.

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A liaison office lets a foreign company have people on the ground in India without carrying on business here. It can represent the parent, promote its products, gather market information and act as a communication channel — but it cannot earn income in India.

N D Savla & Associates assists with liaison office establishment, covering the approval application, registration, the local expense funding framework and the annual certification the office is required to file.

The single largest risk is drift. A liaison office that begins negotiating contracts or invoicing customers is no longer a liaison office, and the consequences run from regulatory breach to an assessed permanent establishment with tax attached.

Our Setup a Liaison Office Services

Eligibility Assessment

Assessment of the parent's track record and net worth against the applicable conditions.

Approval Application

Preparation and submission of the application through the authorised dealer bank.

Registrar Registration

Registration of the place of business in India with the Registrar.

Permitted Activity Advisory

Written guidance on what the office may and may not do in practice.

Expense Funding Framework

Setting up the inward remittance framework for meeting local expenses.

Tax Registrations

PAN, TAN and other registrations applicable to the liaison office.

Annual Activity Certificate

Preparation and filing of the annual activity certificate and accounts.

Renewal & Conversion

Renewal of the approval and advice on converting to a branch or subsidiary.

Our Process

1

Suitability Review

The parent's objectives are tested against what a liaison office may lawfully do.

2

Documentation

Parent financials and constitutional documents are legalised and compiled.

3

Approval

The application is filed through the authorised dealer bank and followed up.

4

Registration & Setup

Registration, banking and tax registrations are completed.

5

Annual Cycle

Accounts, audit and the annual activity certificate are prepared each year.

Why It Matters

Market presence without a trading entity
Permitted activity boundary set out in writing
Eligibility tested before applying
Expense funding framework established correctly
Registration and tax numbers in place
Annual certification filed on time
Renewals tracked so approval does not lapse
Clear route to branch or subsidiary later

Frequently Asked Questions

It can represent the parent, promote its business, collect market information and act as a communication channel, but it cannot undertake commercial activity or earn income in India.
Expenses are met through inward remittance from the parent, as the office is not permitted to generate income locally.
Approval is granted for a defined period and requires renewal, and the office must apply within the applicable timelines.
As it is not permitted to earn income, a properly operated liaison office generally has no Indian tax liability, though filings and certification continue to apply.
It is a certificate confirming that the office has confined itself to permitted activities, filed annually with the accounts.
Where the parent wishes to begin commercial activity, the usual course is to establish a branch or subsidiary and close the liaison office.

Exploring the Indian market?

We'll confirm eligibility, define what the office can do and take the approval through to registration.