Branch / Liaison Office

Branch or Liaison Office of a Foreign Company in India

A body corporate incorporated outside India (including a firm or other association of individuals) can open a Liaison Office (LO) / Branch Office (BO) in India. Companies must obtain permission from the Reserve Bank of India (RBI) under the provisions of the Foreign Exchange Management Act (FEMA).

Basic Criteria Considered by RBI for Approving Liaison/Branch Offices:

Track Record:

  • Branch Office – A profit-making track record during the immediately preceding five financial years in the home country.
  • Liaison Office – A profit-making track record during the immediately preceding three financial years in the home country.

Net Worth Requirement:

Net worth refers to the total of paid-up capital and free reserves, less intangible assets, as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner.

  • For Branch Office – Not less than USD 100,000 or its equivalent.
  • For Liaison Office – Not less than USD 50,000 or its equivalent.

Our Expertise

We at VPS and Associates have extensive experience in setting up Branch and Liaison Offices in India. If you need assistance, please reach out to 📞 +91 90309 31302, 88863 59392.

Other Forms of Business Entities That a Foreign Company Can Set Up in India:

  • Subsidiary Company Registration in Hyderabad
  • Limited Liability Partnerships (LLPs)

 

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