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.
Documents prepared and apostilled, eligibility evidenced, application filed and followed up.
We review what the office is actually doing against what was approved — drift is the common problem.
Accounts audited and the certificate issued by an independent chartered accountant, filed with the AD Bank.
Final accounts, tax clearance and approval to remit the surplus, without a gap in the certificate record.
Presence before committing to a trading entity.
Coordinating with Indian suppliers or customers for the parent.
Where compliance has lapsed or activities have outgrown the approval.
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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💬 Get my quote →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.
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.
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.
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.
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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