Structure · Liaison office

Liaison office in India — presence without trading.

A liaison office lets a foreign company maintain a presence in India without earning income here. It represents the parent, promotes business and acts as a communication channel, and it is funded entirely by inward remittance. The moment it starts earning, it is the wrong structure — and that is the failure mode we see most.

🧾 CA-reviewed · fee quoted upfront
✓Cannot earn income in India — funded entirely by remittance from the parent
✓May represent the parent, promote business, and act as a communication channel
✓Set up under FEMA through an AD Category-I bank; approval is time-limited and renewable
✓Eligibility test — a profit-making track record and a minimum net worth, lower than a branch
✓Files an Annual Activity Certificate from a chartered accountant, plus an income tax return even with no income
✓Must meet withholding and payroll obligations for its staff
Open or regularise a liaison office
Tell us what the office will do in India. If what you describe amounts to trading, we will say so — it is cheaper to hear that now than at closure.
💬 Free consult first·CA-reviewed·No payment to start

What we handle for you

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Application through the AD Bank

Documents prepared and apostilled, eligibility evidenced, application filed and followed up.

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Staying inside the permission

We review what the office is actually doing against what was approved — drift is the common problem.

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Annual Activity Certificate

Accounts audited and the certificate issued by an independent chartered accountant, filed with the AD Bank.

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Closure done cleanly

Final accounts, tax clearance and approval to remit the surplus, without a gap in the certificate record.

Who this is for

🔭 Testing the market

Presence before committing to a trading entity.

🤝 Sourcing and liaison

Coordinating with Indian suppliers or customers for the parent.

🏢 Existing offices

Where compliance has lapsed or activities have outgrown the approval.

Transparent, quoted upfront

Every case is different, so we review yours first and give you a clear price before any work or payment — no charge for the review, no obligation.

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No hidden charges. You decide after you see the price.

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Common questions

Can a liaison office earn income in India?

No. A liaison office cannot carry on any business activity that earns income in India. It is funded entirely by inward remittance from the parent. If it is effectively trading, both a FEMA and a tax exposure arise.

What can a liaison office in India actually do?

Represent the parent company, promote its business, act as a communication channel between the parent and Indian parties, and promote technical or financial collaboration. It cannot sign revenue contracts on its own account.

Does a liaison office file an income tax return?

Generally yes, even though it earns no income, and it must also meet withholding and payroll obligations for its staff. It files an Annual Activity Certificate from a chartered accountant as well.

How long is a liaison office approval in India valid?

Liaison office approvals are granted for a limited period and are renewable through the AD Category-I bank, subject to compliance being up to date.

What if our liaison office in India wants to start trading?

The liaison office is converted or closed and a subsidiary or branch is set up instead. It is a planned transition, not something to drift into — an office that has effectively been trading creates exposure on both the FEMA and the tax side.

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Full NRI / foreign-income ITR filing
The complete return — DTAA, Form 67, Schedule FA. ₹4,999 all-inclusive.
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