It is a setup by a foreign Company in India to carry out the liaISOn activity for its business. The Company cannot have any revenue for the Indian LiaISOn office; It has to meet all its expenses of Indian office through remittances from the Head office. The LiaISOn office is not allowed to earn any income in India.
Some important factors
The name of Indian liaISOn office shall be the same as the parent Company.
The governing body for the LiaISOn office License is Reserve Bank of India.
The license will approve through Authorised Dealer Category-I, in the case where 100% FDI is permitted.
The LiaISOn office does not have any ownership; it is just an extension of the exiting Company in a foreign country.
The License for the LiaISOn office is given for three years and shall be renewed every 3 years.
The Company should have a good track record in profit-making in the parent Company
The activity can be initiated by LO
Representing in India the parent Company/group comPANies.
Promoting export / import from / to India.
Promoting technical/financial collaborations between parent/group comPANies and comPANies in India.
Acting as a communication channel between the parent Company and Indian comPANies.
BENEFITS BY REGISTERING LO
Foreign entity get recognition in India
Can pROCeed with its liaISOn activity for its business in India
Helping in test and understand the Indian market,
Helping in carrying out the Research & Development activities or to understand the problem of existing clients of the Company and serve them better.