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India Entry

Liaison Office

A representative, non-commercial presence to understand and engage the Indian market.

Representative presence

Non-commercial by design

Market engagement

Research, promotion, coordination

Defined limits

No trading, invoicing or revenue

Representative

Non-commercial presence

No revenue

Activity limits apply

Annual

Reporting and compliance

Overview

A representative presence without commercial activity

A liaison office is typically used by a foreign company that wants a representative presence in India without direct commercial or revenue-generating activity.

It is a limited-purpose structure that can support communication, market research, promotion, coordination, and representing the foreign parent. It cannot be used for trading, invoicing, selling, manufacturing, consulting revenue, or commercial execution. Companies often choose it for simplicity, then find their plans need a subsidiary, branch office, or project office.

Communication

Market research

Promotion and coordination

Audience

Who is this for?

Market explorers

Foreign companies exploring the Indian market before committing.

Coordination only

Groups that need only communication, coordination, or market research.

Not yet earning

Parent companies not yet planning to earn revenue in India.

The process

What it involves

Expenses are generally met through inward remittances from the foreign parent via permitted banking channels. The office must stay within its approved scope and keep records showing it has not moved into commercial operations.

Eraqus helps assess suitability, activity restrictions, documentation, approvals, annual reporting, funding discipline, and compliance.

01

Assess suitability and activity scope

02

Understand activity restrictions

03

Prepare documentation

04

Obtain the required approvals

05

Set up funding through permitted channels

06

Plan annual reporting and compliance

Before you begin

Key considerations

01

Strict limits: no trading, invoicing, or revenue in India.

02

Funding only through inward remittances via permitted banking channels.

03

Records proving the office stays within scope.

04

Annual reporting and compliance obligations.

05

Whether the real plan needs a subsidiary or branch office instead.

After incorporation

Ongoing compliance and the right choice

A liaison office suits companies that want to understand the market, engage customers or partners, coordinate with local stakeholders, or maintain a non-commercial base. It should not be used to sell, invoice, execute contracts, or earn revenue in India.

Annual reporting
Funding discipline
Scope records
Activity limits
FAQ

Frequently asked questions

No. It is representative only and cannot trade, invoice, sell, manufacture, or conduct other commercial activity. Revenue requires a different structure.

Mainly through inward remittances from the foreign parent via permitted banking channels, with records kept to show it stays within scope.

Discuss your requirement with our team

Describe where your business stands and what you plan next. The team will help you understand the structure, documentation, and compliance that fit your situation.

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