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