Author: CS Bhavesh Chheda
Published in: Taxmann
This provides an overview of setting up a Liaison Office (LO) in India by foreign entities under FEMA regulations. It explains the eligibility criteria, RBI approval process, permitted activities, compliance requirements, and operational restrictions of an LO. A Liaison Office acts as a communication and coordination channel between the foreign parent company and Indian businesses but cannot undertake commercial activities or earn income in India. It also covers financial requirements, bank account rules, validity extensions, annual compliance, closure procedures, and RBI guidelines applicable to foreign companies planning to establish a presence in India.
