What Is a Liaison Office?
A liaison office (also called a representative office) lets a foreign company build contacts and promote its business in India. It acts only as a channel of communication between the parent and Indian parties and cannot earn income in India.
All expenses of a liaison office are met from money sent by the parent from abroad. The approval is given for a limited period and can be extended, and the office must register with the ROC in Form FC-1.
A compliant representative office
- FEMA application filed
- FC-1 with the ROC
- Annual Activity Certificate
Who Opens a Liaison Office?
- Foreign companies exploring the Indian market
- Companies promoting their products in India
- Firms coordinating technical or financial collaboration
- Parents that need a local contact point
Benefits
Low-risk entry
Understand the market before investing.
Local presence
Meet clients and partners on the ground.
Simple structure
No commercial activity, so lighter compliance.
Path to expansion
Upgrade later to a branch or subsidiary.
Documents Required
- Certificate of incorporation of the parent (apostilled or notarised)
- Memorandum and articles or charter documents
- Audited financial statements of recent years
- Board resolution of the parent
- Details of the representative in India
Liaison Office Registration Process
Eligibility
We check the parent’s profit record and net worth.
Application
Form FNC is filed through your AD Category-I bank.
Approval
Approval with a unique identification number is issued.
ROC registration
Form FC-1 within 30 days.
Set up
PAN, TAN and bank account opened.
Common Mistakes to Avoid
- Earning income in India – A liaison office cannot carry on any commercial activity.
- Local funding of expenses – Expenses must come from the parent’s remittances.
- Missing extension – Apply for extension before the approval period ends.
- Skipping annual filings – The Annual Activity Certificate is mandatory.
Ongoing Compliance
Annual Activity Certificate
Filed with the AD bank each year.
ROC filings
Annual accounts and returns of the foreign company.
Income tax
Annual statement to the tax department.
Extension
Renew approval before validity ends.
Why Choose Vaidam Consultancy for Liaison Office Registration
Expert-led
Company secretaries and tax experts handle your application.
Clear quote upfront
You receive our fee and all government charges before we begin.
Documents checked first
Fewer queries because everything is checked before filing.
One point of contact
A single consultant follows up until the approval is issued.
Frequently Asked Questions
No. It can only represent the parent and must not carry on commercial activity.
Approval is for a limited period, generally up to three years, and can be extended.
The parent, through inward remittances from abroad.
Generally not, as it does not make taxable supplies; we confirm case by case.
Yes, by applying for a branch office with the required approvals.