Branch Office / Liaison Office Setup in India
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Branch Office / Liaison Office Setup in India
Setting up a Branch Office or Liaison Office in India is the first step for foreign companies aiming to explore the Indian market without incorporating a new entity. At AMG Corporate Avenues LLP, we assist you through RBI approvals, regulatory filings, and post-setup compliance, ensuring a smooth and compliant market entry.
✅ End-to-End RBI & FEMA Compliance
✅ Entity Setup Without Full Incorporation
✅ Dedicated Support for Foreign Investors
✅ Sector-Specific Advisory for Branches & Liaisons
Establish a Foreign Company Presence with AMG Corporate Avenues LLP
What is a Branch Office in India?
A Branch Office (BO) is an extension of a foreign company, permitted to carry out commercial activities in India, such as import/export, consultancy, professional services, and project execution. It is not a separate legal entity but must comply with Indian law,s including FEMA and RBI guidelines.
What is a Liaison Office in India?
A Liaison Office (LO) is a non-commercial setup that acts as a communication bridge between the parent company abroad and potential partners/customers in India. It cannot generate income in India and is limited to activities like market research, brand promotion, or facilitating import/export.
Key Differences Between BO and LO
| Feature | Branch Office | Liaison Office |
|---|---|---|
| Revenue Generation | Allowed | Not Allowed |
| RBI Approval | Required | Required |
| Activities Permitted | Commercial and trading activities | Liaison & brand representation only |
| Tax Liability | Liable to pay income tax | Not liable (no revenue allowed) |
| Suitable For | Businesses ready to trade or consult | Market entry or brand promotion |
Who Can Set Up a Branch or Liaison Office in India?
- Foreign Companies with a Profit Track Record
The foreign entity must have a profit-making track record in the last 5 financial years and a net worth of at least USD 100,000. - Startups or New Firms (with exceptions)
Newer firms may apply for approval under the approval route by the RBI in case of strategic or developmental relevance to India. - Foreign Banks or Insurance Companies
Eligible under specific RBI and sectoral regulations for opening branch offices in the financial or insurance sector.
Permitted Activities for a Branch Office
- Export and Import of Goods
Facilitates trading operations and direct business relationships with Indian suppliers or buyers. - Professional and Consultancy Services
Can offer technical, engineering, or management consultancy to Indian clients. - Research Work for Parent Company
Allowed to conduct R&D operations in sectors where the parent company is active. - Representing Parents in India
Can act as an official representative office and build client/vendor relationships on behalf of the parent entity.
Regulatory Requirements for BO/LO Setup
- RBI Approval
Foreign companies must get prior approval from the Reserve Bank of India under FEMA regulations before setting up a BO or LO. - AD Category-I Bank Coordination
Applications must be routed through an Authorized Dealer (AD) Bank along with supporting documents like incorporation proof, net worth certificate, etc. - FIPB/Sectoral Clearances
Additional approvals are required for sectors like telecom, defence, insurance, and broadcasting. - PAN, TAN & GST (If applicable)
After registration, the BO/LO must obtain necessary tax registrations to comply with Indian income tax or GST law (where relevant).
Process of Branch Office \ Liaison Office
Step 1: Determine Office Type
Step 2: Documentation & Legal Drafting
Step 3: RBI Application via AD Bank
Step 4: Establishment Certificate
Step 5: Post-Approval Compliance
Our BO/LO Advisory Includes
✅ Regulatory Feasibility Analysis
We evaluate whether a Branch or Liaison office best fits your purpose based on RBI regulations and activity scope.
✅ Drafting & Documentation
Preparation of application forms, parent company documents, and other RBI-mandated declarations with accuracy and speed.
✅ End-to-End RBI Coordination
We file your RBI application through an AD Bank and respond to clarifications, reducing turnaround time.
✅ Setup & Tax Registration Support
Includes guidance on PAN/TAN/GST and establishing compliant banking operations in India.
✅ Post-Incorporation Compliance
We offer advice for annual filings, FEMA reporting, and closure procedures when the business goal is achieved.
Why Choose AMG Corporate Avenues LLP?
✅ Cross-Border Expertise
We understand FEMA, RBI, and taxation intricacies that impact foreign entities entering India.
✅ Single-Window Advisory
From RBI approvals to local office setup and legal drafting, we handle everything under one roof.
✅ Custom-Tailored Solutions
Our services are designed to suit sector-specific nuances, whether you’re in IT, manufacturing, or consulting.
✅ End-to-End Documentation
We ensure your application meets RBI standards with verified documents and a prompt turnaround..
Frequently Asked Questions (FAQs)
No, LOs are not permitted to undertake any commercial activity in India.
Generally valid for 3 years for Liaison Offices and renewable subject to compliance.
Yes, in permitted sectors and with appropriate reporting under FEMA regulations.
While not mandatory, hiring local support improves operational efficiency and compliance handling.
Yes, subject to RBI approval and sectoral caps, multiple BOs or LOs may be allowed.