Maintain

Registrations

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:

  1. Designate an Authorized Dealer Bank (AD Bank) and branch where your account will be opened post approval from RBI. Designated AD Bank will act as corresponding Bank for your Liaison Office activities in India
  2. File an application to the Reserve Bank of India (RBI) through the AD Bank for permission to set up Liaison Office with all necessary documents and information.
  3. Secure approval from RBI
  4. Submit an application to ROC to obtain a “Certificate of Establishment of Place of Business in India ”
  5. Open an account  (post-approval) with the Bank and to obtain account number
  6. Apply for allotment of PAN and TAN Numbers with Income Tax Authority
  7. Obtain registration under Shop and Establishment Act, wherever desired
  8. Obtain registration under Professional Tax, if applicable within the state of registration of Liaison Office
  9. Obtain Import Export Code for importing samples and other promotional material

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”.