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Enter the Indian Market with a Branch or Liaison Office

Foreign companies looking to establish a physical presence in India without incorporating a full-fledged subsidiary can opt to set up a Branch Office (BO), Liaison Office (LO), or Project Office (PO). Strictly governed by the Reserve Bank of India (RBI) under FEMA regulations, these structures allow foreign entities to test the Indian market, execute specific contracts, or act as an official communication channel. Unlike a subsidiary, a BO or LO does not have a separate legal identity; it acts as a direct extension of its foreign parent company.

Branch / Liaison Office

Why Open a Branch or Liaison Office?

A Branch or Liaison Office provides a strategic, low-risk entry point into India, allowing foreign parent companies to build relationships without immediately taking on heavy corporate compliance.

  • Market Research (LO): A Liaison Office is perfectly designed for conducting market research and acting as a communication channel without legally earning income.
  • Direct Operations (BO): A Branch Office can actively engage in export/import, research, and rendering professional consulting services.
  • Repatriation: Profits generated by an active Branch Office can be freely remitted back to the parent company abroad after paying applicable taxes.
  • Simplified Winding Up: Easier and faster to legally close than a full subsidiary if the market test does not yield the expected results.
  • Project Execution (PO): Project Offices allow foreign contractors to legally execute specific government or private contracts won in India.
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Who Should Opt for This?

Our Interactive Planning Approach ensures that every client is actively involved in shaping their business strategy to match their goals.

Market Testers

Foreign companies wanting to thoroughly research the Indian market and build vendor relationships before committing to a subsidiary.

Airlines & Shipping

Foreign airlines, shipping companies, and logistics firms operating routes in and out of Indian ports.

Infrastructure Firms

Foreign contractors and engineering firms who have successfully secured a specific project contract in India.

Streamlined Registration Process

Experience a hassle-free incorporation with our 100% online, transparent, and legally compliant methodology.

  • Track Record Verification
  • AD Bank Application
  • RBI Approval
  • ROC Registration
Checklist

Documents Required

  • Apostilled English version of the Certificate of Incorporation / MOA / AOA
  • Apostilled Audited Balance Sheets of the parent company for the last 3-5 years
  • Board Resolution expressing the absolute intent to open an office in India
  • Apostilled KYC of the proposed Authorized Representative in India
  • Banker's Report strictly from the parent company's corporate bank

Why Choose WealthWave?

AD Bank Coordination

We directly liaise with your Authorized Dealer Bank to ensure smooth, error-free processing of the complex FNC form.

RBI Representation

Our experts possess the deep FEMA and forex knowledge required to rapidly handle complex RBI queries.

Comprehensive Compliance

We handle post-approval ROC filings, PAN/TAN procurement, and the mandatory Annual Activity Certificates (AAC).

Strategic Structuring

We analyze your business model to advise whether an LO, BO, PO, or Subsidiary is the best legal vehicle for your goals.

Frequently Asked Questions

Can a Liaison Office (LO) earn money in India?
No. A Liaison Office is strictly prohibited from undertaking any commercial, trading, or industrial activity. It can only act as a communication channel, and its expenses must be met entirely through inward remittances from the parent company abroad.
What are the strict track record criteria for opening an office?
For a Branch Office, the foreign parent must have a profitable track record during the preceding 5 years and a net worth of $100,000. For a Liaison Office, the requirement is 3 years and a net worth of $50,000.
Does a Branch Office pay tax in India?
Yes. Even though it is not a separate legal entity, a Branch Office is legally considered a "foreign company" for tax purposes and is subject to corporate tax on the income it generates within India.
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