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Foreign Company Set-up

Setting Up a Liaison Office of a Foreign Company in India

Last updated: 2 October 2026

A liaison office lets a foreign company build contacts and represent itself in India before committing to a full business set-up. It cannot earn income. Our team handles the application through an authorised dealer bank, ROC registration and the yearly filings.

Overview

What a liaison office can and cannot do

A liaison office (LO) acts as a channel of communication between the foreign company and parties in India. It can promote the parent’s products, explore business opportunities and support technical and financial collaboration. It cannot carry on any business or earn income in India — all its expenses are met by remittances from the parent.

  • Applications are made to RBI through an Authorised Dealer Category-I bank. Under the current rules the parent needs a profit-making track record of three years and a net worth of at least USD 50,000.
  • Approval is usually for a limited period, which can be extended.
  • Within 30 days of setting up, the office registers with the ROC in Form FC-1.
  • Each year the LO files an Annual Activity Certificate through the AD bank, and annual filings with the ROC.

RBI has published draft regulations that would change eligibility and tenure rules. We check the rules in force when you apply.

Based on FEMA regulations on branch, liaison and project offices and section 380 of the Companies Act, 2013. Last updated: 27 September 2026.

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What This Service Covers

What our liaison office service covers

1

Eligibility review against RBI conditions

2

Application through an AD Category-I bank

3

FC-1 registration with the ROC

4

PAN and bank account for receiving remittances

5

Yearly Annual Activity Certificate and ROC filings

Key facts at a glance

No income

A liaison office cannot earn income in India

USD 50,000

Minimum net worth of the parent under current rules

3 years

Profit-making track record needed under current rules

30 days

To register the office with the ROC in FC-1

Remittances only

Expenses are met from the parent’s inward remittances

AAC

Annual Activity Certificate filed through the AD bank

Common Issues

Where liaison offices commonly go wrong

The most serious issue is drifting into business activity.

Earning income

Invoicing Indian customers or receiving commission from India breaches the approval.

Approval period lapsing

Extensions not applied for in time.

Yearly filings missed

AAC and ROC filings overlooked because the office has no revenue.

Related Services

Related services

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Indian Subsidiary

Trade and earn in India.

Branch Office

Permitted business activities.

India Entry Options

Compare all routes.

Talk to our team

Discuss your India plan.

Documents Required

Documents we need from you

Parent Company Documents

India Office Documents

Our Process

How we set up your liaison office

1

Eligibility

We check the parent’s track record and net worth.

2

Application

Application prepared and filed through your AD bank.

3

Approval

Queries answered until the approval or UIN is issued.

4

ROC registration

FC-1 filed within 30 days.

5

PAN & bank

PAN and a bank account to receive remittances.

6

Yearly compliance

AAC and ROC filings every year.

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Yearly Compliance

Yearly compliance for a liaison office

Filings continue every year even though the office earns nothing.

AAC

Annual Activity Certificate through the AD bank.

ROC filings

Annual accounts and return for the Indian office.

Tax

Income tax filings as applicable.

Extension or closure

Apply for an extension before expiry, or close the office properly.

Get in Touch

Share your query and our team will reply during business hours.






    FAQs

    Frequently Asked Questions

    Can a liaison office earn income in India?

    No. It can only represent the parent and must meet its expenses from the parent’s remittances.

    RBI, through an Authorised Dealer Category-I bank. Some applicants need prior government approval.

    Approval is usually given for a limited period and can be extended on application.

    Yes, in Form FC-1 within 30 days of setting up.

    The foreign company can set up a subsidiary and then close the liaison office.

    About Expertvuw

    Who handles your case

    CS Chetna Shoor, Company Secretary and Director, Expertvuw

    CS Chetna Shoor

    ACS – Director, Expertvuw Management Pvt Ltd

    This work is handled by Expertvuw’s team, with filings made on the MCA portal. Certifications and audits required by law are issued by independent practising professionals engaged for your case.

    Expertvuw Management Pvt Ltd