Liaison Office · India Setup

Open Your Liaison Office In India

A legal Indian presence — for research, communication, and relationship-building — without commercial activity.

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2K+
Clients Served
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18+
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Liaison Office India
Understanding the Structure

Explore the Indian Market Before You Fully Enter

A Liaison Office (LO) is a representative office approved by the RBI under FEMA. It lets your foreign company communicate, explore, and build relationships in India — without any commercial operations. All expenses must be funded by inward remittance from your parent company abroad.

What makes it different

A Liaison Office is the lowest-commitment, lowest-risk way for a foreign company to establish a legal presence in India. Unlike a Branch Office or Subsidiary, it cannot earn a single rupee — but it gives you a real, RBI-approved foothold to explore before you commit.

Think of it as your first step into the Indian market — a compliant local presence that helps you explore opportunities, build relationships, and prepare for future expansion.

Zero commercial risk · RBI approved · Renewable every 3 years
Liaison Office India
Who It’s For
→Foreign companies wanting India presence before full commitment
→Companies exploring market entry strategies
→Businesses building Indian partnerships or supply chains
→Those not yet ready for Branch Office or Subsidiary
Duration & Renewal
→Initial approval valid for 3 years
→Renewable — apply at least 2 months before expiry
→Can convert to Branch Office or Subsidiary anytime
→Continuous compliance with RBI & FEMA required
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RBI Permitted Activities

What your liaison office can & cannot do?

RBI specifies a defined list of permitted activities for a Liaison Office. Your office can only operate within these boundaries — we advise you on every activity before you proceed.

Permitted Activities
✓Represent the parent company in India
✓Promote import & export of parent’s products/services
✓Conduct market research and feasibility studies
✓Facilitate technical or financial collaborations
✓Act as communication channel between parent & Indian entities
✓Provide liaison and coordination support to parent company
Not Permitted
✕Earn any revenue or income in India
✕Trade or conduct any commercial activity
✕Sign contracts in its own name
✕Charge fees for any service rendered
✕Manufacture or process goods in India
✕Legal consultancy (explicitly prohibited — RBI draft 2025)
Earning income — even inadvertently — is a FEMA violation with serious penalties.
We review every proposed activity before you begin. No grey areas go unadvised.
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Unsure if your activities are permitted?

Tell us what your India operations need to do — we’ll advise on the right structure in one business day.

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RBI Conditions

Do You Qualify?

01 —
Profitable Track Record
The parent company must have a profit-making track record for the immediately preceding 3 financial years in the home country.
02 —
Minimum Net Worth
Net worth of not less than USD 50,000 (or equivalent) as per the latest audited balance sheet.
✦ 2025 Draft: Threshold proposed to be removed
03 —
Permitted Sector
Proposed activities must fall within the list of permitted liaison activities under FEMA — not from a restricted or approval-required FDI sector.
04 —
Letter of Comfort
If the applicant is a subsidiary and does not meet the criteria independently, a qualifying parent or group company can provide a Letter of Comfort to RBI.
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Governed by FEMA Notification No. 22(R)/2016-RB · Processed via Authorised Dealer Category-I Bank
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Step-by-Step Process

How We Set Up & Support Your Liaison Office

You focus on your India presence. We handle the setup and compliance.

01
Understand Your Requirement
We review your business plans and confirm whether a Liaison Office is suitable.
02
Prepare the Documents
We guide you on the required documents and review them for submission.
03
Handle RBI & Bank Process
We manage the application and coordinate with the authorised bank for approval.
04
Complete Registrations
We assist with ROC, PAN, TAN, bank account, and other required registrations.
05
Manage Ongoing Compliance
We support annual filings, certifications, accounting, and ongoing regulatory requirements.
Next — what you need to provide

Documents Required

We send you a complete, personalised checklist after your first call. Here’s what’s typically required — we guide every step of collection and legalisation.

Certificate of Incorporation (apostilled / notarised)
Memorandum & Articles of Association
Board resolution authorising LO setup in India
Audited financial statements (last 3 years)
Banker’s report from home country bank
KYC of authorised representative / Principal Officer
Details of proposed activities in India
Letter of Comfort from parent (if subsidiary)
Proof of registered office address in India
Power of Attorney (if head of company not signing)
We Handle This
Country-specific checklist sent after first call
We guide notarisation & apostille for every document
Indian Embassy attestation where required
Review before submission — nothing bounced back
Certified English translation arranged if needed
Note: All documents must be in English or with certified translation. Apostille required for Hague Convention countries.
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Ongoing Compliance

We Keep You Compliant, Always.

A Liaison Office has significant ongoing compliance obligations. We manage every filing so your LO stays active, RBI-compliant, and renewal-ready — throughout the full lifecycle.

01
Annual Activity Certificate
Filed by CA with AD Bank and DGIT (International Taxation) each year. Confirms only permitted activities were conducted.
02
ROC Annual Filings
Form FC-3 (financial statements) and Form FC-4 (annual return) filed with MCA within prescribed deadlines each year.
03
FLA Return
Foreign Liabilities and Assets return filed with RBI by July 15 each year, if any foreign assets or liabilities are outstanding.
04
Statutory Audit
Annual audit of books under Indian accounting standards by a practising CA — mandatory for all Liaison Offices in India.
05
Renewal Application
Renewal submitted at least 2 months before expiry. We prepare and submit all renewal documentation and manage the process.
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Renewal & Closure — Fully Managed
We handle renewal submissions 2 months before expiry. Formal closure includes tax clearances, RBI & ROC filings. Conversion to Branch Office or Subsidiary also managed.
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Already have a Liaison Office in India?

We take over your compliance from where you are — no disruption to operations.

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Why Mercurius

We Are Not a
Document-Filing Service.

We are your India market entry partner from day one. 100+ foreign companies have trusted us with their Liaison Office — from eligibility to renewal and beyond.

One Expert, Start to Finish
No handoffs. No confusion. One dedicated consultant manages your entire setup and compliance — from eligibility check to renewal and beyond. You always know who to call.
Transparent, Fixed Pricing
You know the cost upfront. No hidden fees, no surprises when RBI approval takes longer, no upsells at any stage. One fixed fee agreed before we begin.
Faster RBI Approvals
We know exactly what AD banks and RBI look for. Our document checklist eliminates avoidable rejections and re-submissions — reducing delays from the very first submission.
Built for Foreign Companies
We work exclusively with clients from the US, UK, Europe, Middle East, and Southeast Asia entering India for the first time — we understand the unique challenges you face.
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100+
LOs Set Up
0%
RBI Rejections
6–8w
Avg Setup Time
24hr
Response Time
Ready to start your India market exploration?

Free 30-minute consultation — eligibility, options, and a transparent quote. No obligation.

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FAQ

Got Questions?

Everything foreign companies ask about setting up a Liaison Office in India — answered by our professional team.

Still have a question?
Our professional responds within 24 hours — no sales pitch, straight answers.
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Does a Liaison Office need RBI approval?+
Yes. Every Liaison Office requires prior approval from the RBI through an Authorised Dealer Category-I bank. Approval is currently granted for 3 years and is renewable. We manage the entire approval process from application to UIN issuance.
How long does the Liaison Office approval take?+
Typically 6–8 weeks from document submission. RBI review takes 4–6 weeks. We reduce delays by submitting complete, correctly prepared documents from day one — no avoidable re-submissions.
Can a Liaison Office earn any income in India?+
No. A Liaison Office cannot earn any income in India. All expenses must be funded by inward remittances from the parent company abroad. Earning income — even inadvertently — is a FEMA violation and can result in serious penalties.
Not sure if your activities count as income? We review every proposed activity before you begin.
Get Free Advice →
How long is the initial approval valid?+
Under current 2016 regulations, 3 years from the date of approval, renewable. The 2025 RBI draft proposes removing tenure limits entirely, allowing indefinite operation subject to ongoing compliance. We advise all clients on regulatory updates as they happen.
How do we renew a Liaison Office?+
Renewal applications must be submitted to your AD bank at least 2 months before expiry. We prepare and submit all renewal documentation and manage the process on your behalf — you don’t need to track deadlines.
What if we want to start doing business in India later?+
A Liaison Office can be converted into a Branch Office or Wholly Owned Subsidiary. We advise on timing, structure, and manage the conversion process — including all RBI and ROC filings. Many of our clients start with an LO and graduate to a full entity.
Can a Liaison Office hire Indian employees?+
Yes. A Liaison Office can hire local staff. You must comply with applicable labour laws including PF, ESIC, and the Shops & Establishments Act. We set up all employment compliance as part of our handover service.
Have a question we didn’t answer? Talk to our India entry team — free, no obligation.
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