Liaison Office Registration
Setting up a Liaison Office requires different kinds
of approvals and registrations from different government authorities. Typical
steps to set up a Liaison Office can be summarised as under:
The
company looking to start a Liaison office in India must have a profitable track
record during immediately preceding three years in the home country. The Net
Worth (i.e. total of paid-up capital and free reserves, less intangible assets)
as certified by a Certified Public Accountant or any Registered Accounts
Practitioner (by whatever name called) as per the latest Audited Balance Sheet
or Account Statement, shall not be less than or equal to USD 50,000/-.
At FastCorp,
we can help you establish a Liaison Office for your Company by obtaining the
relevant registrations. Some typical registration requirements for a Liaison
Office of a foreign Organisation are as under:-
Ø Registration
cum Approval from RBI
Ø Registration
with Registrar of Companies (RoC) under Ministry of Corporate Affairs (MCA),
GOI.
Ø Permanent
Account Number (PAN)
Ø Tax
Deduction Account Number (TAN)
Ø Goods
& Services Tax Registration
Ø Shops
& Establishments Act Registration
Ø Import
Export Code (IEC)
Ø Professional
Tax Registration
Documents
/ Information required to establish a Liaison Office:-
Ø Form
FNC – 1 – Three copies
Ø Letter
from the principal officer of the Parent company to RBI requesting registration.
Ø Letter
of authority from the parent company in favour of Local Representative.
Ø Letter
of authority/ Resolution from parent company for setting up Liaison Office in
India.
Ø Comfort
letter from the parent company intending to support the operation of Liaison Office
in India.
Ø Two
copies of the English version of the Certificate of Incorporation, Memorandum
& Articles of association (Charter Document) of the parent company duly
attested by the Indian embassy or notary public in the country of registration.
Ø Certification
of Incorporation (Translated & duly Notarised and Certified by Indian
Consulate & Directors).
Ø The
Latest Audited Annual Financial Statements of parent company for past Three
years (Translated & duly Notarized & Certified by Indian Consulate
& Directors).
Ø Name,
Address, email ID and telephone number of the Authorized Person in Home
Country.
Ø Details
of Bankers of the Organization in the Country of Origin along with the Bank Account
Number
Ø Commitment
from the Organization to the effect that it will be open to report / opinion
sought from its banker by the Government of India / Reserve Bank of India
Ø Expected
funding requirement for operations in India.
Ø Details
Relating to address of the proposed local office, number of persons likely to
be employed, number of Foreigners among such employees and address of the Local
office Head, if decided
Ø Details
of Activity carried out in Home Country by the applicant organisation in brief
about the product and services of the Company in Brief.
Ø Bankers
Certificate
Ø Latest
Proof of identity of all the Directors (Certified by Consulate and Banker in
Home Country).
Ø Latest
Proof of address all of Directors (Certified by Consulate and Banker in Home
Country).
Ø Shareholding
pattern of the Organization.
Ø Details
of the Individuals / Company holding more 10% of Equity in the Applicant
Organization.
Ø Complete
KYC of Shareholders holding more than 10% Equity in the Applicant Organization.
Ø Resolution
for Opening up Bank Account with the Banker.
Ø Duly
Signed Bank Account Opening Form of Indian Bank.
As per
our long experience in registering Liaison Office for foreign companies, the
entire process of setting up Liaison Office and making it functional takes 2 to
6 months after receipt of all the necessary documents from our clients. In
reality, RBI approval alone takes 2-3 months, so it is realistic to plan 4-6
months to have everything in place. Initially Permission
to set up such Liaison Office is granted for a period of 3 years, which may be
extended from time to time by an “AD Category I bank”.