Liaosioning Office/ Project office
Liaison Office is established by a foreign company in India solely for taking up liaison activities between overseas head office and domestic business parties. This office acts as a channel of communication between parent company outside India and business corporates in India. The expenses of liaison office are entirely met through overseas inward remittances from its foreign parent company.
Attributes of a Liaison Office- Requires general permission from RBI
- Represents the foreign parent company
- Encourages export from or import to India
- Facilitates technical and financial collaboration
- Activities related to business or earning are not permitted
- Solicitation, advertisements and investments are not allowed
Pre-requisites for establishing a Liaison Office
- Details of activities conducted in the Indian office
- Passport copy of authorized local representative
- Proof of Residence of authorized local representative
- Undertaking letter for opening a bank account in India
- Certified Accounts statement certified showing the net worth
- Audited Balance sheet of the applicant company of the last three years
- Applicant banker’s report showing the number of years of the banking relations
- Power of Attorney by parent company in favor of authorized local representative
- Certificate of Incorporation, Memorandum of Association and Articles of Association copy
- Necessary documents must be English translated and notarized, cross-verified or attested by Indian Embassy / Notary Public or Consulate in the country of registration
Project Office is set up by a foreign company in India for executing their project related activities. There must be an Indian entity awarding a secured contract to the foreign company for executing project in India. The project can be funded by overseas inward remittances from international parent company, finance institutions and/or banks; or by project finance or term loan taken by the Indian entity from Indian public financial institution and/or banks
Attributes of a Project Office- Requires general permission from RBI
- Represents interests of foreign parent company
- Project requires clearance from appropriate authority
- Activities not related or incidental to project are not permitted
Pre-requisites for establishing a Project Office
- Details of activities conducted in the Indian office
- Passport copy of authorized local representative
- Proof of Residence of authorized local representative
- Undertaking letter for opening a bank account in India
- Documentary proof of the financial backing of project
- Audited Accounts and Balance sheet of the applicant company
- Applicant banker’s report showing the number of years of the banking relations
- Letter of Authority by parent company in favor of authorized local representative
- Board resolution of parent company declaring their intention of establishing office in India
- Certificate of Incorporation, Memorandum of Association and Articles of Association copy
- Necessary documents must be English translated and notarized, cross-verified or attested by Indian Embassy / Notary Public or Consulate in the country of registration