Liaison office
A Liaison Office functions as a representative office set up primarily to explore and understand the business and investment climate.
The main purpose of establishing a Liaison office by a foreign entity in India is to explore the possible business opportunities through understanding the Indian market and gathering relevant business information. A Liaison office helps the foreign entities to develop a business strategy to tap the existing business opportunities in India.
Establishment of Liaison Office/Representative Office in India is governed by Reserve Bank of India (RBI) together with Ministry of Finance, Government of India. The rules and regulations in respect to Liaison Offices are framed under Foreign Exchange Management Act, 1999 and Circulars/Notifications issued by RBI from time to time.
Features of Liason Office
- Representing parent/group companies in India
- Promoting import/export in India
- Promoting technical/financial collaborations on parent company/group’s behalf
- Coordinating communications between parent/group companies and Indian companies