Imam associates – Best Chartered Accountant in Hyderabad. Call Us : +91 9246536701 chartered accountant hyderabad, Company Registration, Accounting, Auditing, Taxation, Payroll Processing, GST Registration, GST Returns, Income Returns, Company Law Matters Liaison/Branch/Project Offices of Foreign Entities in India

​Foreign Company Branch Offices In India


  • India, one of the world's biggest and fastest-growing economies, offers international companies and investors ample opportunities to set up their respective businesses in India.
  • Through the establishment of various company or liaison offices in India, including wholly-owned subsidiaries, joint ventures with Indian firms, limited liability partnerships, and entities such as liaison offices (LOs), branch offices (BOs), and project offices (POs), these opportunities are accessible.
  • The creation, governance, and regulation of these entities founded in India by foreign individuals or entities shall be carried out in accordance with the rules and regulations set out in the Central and State Governments' FDI Policies, the 1934 RBI Act, the 2013 Indian Companies Act, the 1999 FEMA Act, and so on.
  • We present very detailed and useful information on the establishment in India of the Liaison Office (LO), Branch Office (BO), and Project Office (PO) by foreign individuals and companies on this web page.
  • Except for proprietary concerns and individuals/companies belonging to certain countries, after obtaining prior and proper permission from the Reserve Bank of India, foreign companies, in general, can easily establish their liaison offices, branch offices, or project offices in India. The section below offers exclusive details about how individuals or companies based in countries abroad can set up a liaison office, branch office, or project office anywhere in India.
  • It should be noted here that individuals/companies based in Pakistan, Bangladesh, China, Sri Lanka, Iran, Afghanistan, Hong Kong and Macao need RBI's special permission to open any of the three offices referred to above in India. Again for the purposes of creating any of these offices, entities belonging to these countries are not permitted to acquire immovable property anywhere in India; they may lease the required property for a maximum permissible duration of five years. Only liaison offices in India can be opened by organisations situated in Nepal.
  • How in India do foreign companies open liaison/branch offices?
  • After obtaining proper permission from the RBI in advance, and if required, also from the Ministry of Finance of the Government of India, any of these offices are established in India. Required processes with the appropriate Registrar of Companies (ROC) can take place only after this necessary authorization from the RBI.
  • First of all for the establishment of any of these three categories of entities anywhere in India, the foreign companies/entities concerned must send to the General Manager, Foreign Exchange Department, Central Office Cell, RBI, New Delhi Regional Office 110 001 the completed application in Form FNC along with all prescribed documents through the Approved Dealer Category-1 Bank. Upon receipt of the completed FNC form.
  • RBI will consider and analyse the forwarded application on the following basis:—-automatic or government route; track record of the applicant's foreign company in its home country during the preceding three or five financial years; the applicant's financial position should have a net value of at least US$ 50,000 or more the proposed activities;
  • Depending on the form of the proposed agency, the conditions to be strictly fulfilled for obtaining RBI permission differ. The following are the general requirements to be fulfilled by the applicant for the establishment of the desired liaison office, branch office or project office by foreign companies/entities anywhere in India:
  • A non-interest bearing INR current account with Category-1 Bank in India will have to open a liaison office/branch office/project office.
  • Foreign entities/companies formed in countries other than those mentioned above may acquire immovable property anywhere in India solely for the purpose of carrying out their activities approved by the RBI and not for leasing or renting out purposes.
  • After the application has been accepted, the RBI will grant the applicant company a Unique Identification Number (UIN). The appropriate ROC and the Director General of Police (DGP) of the State concerned will then be forwarded with information on such an approval. An application is also to be made to receive the PAN.
  • After becoming operational, the LO/BO/PO must send to the DGP within five working days a report in accordance with the information needed under the Annex given in AP DIR.Circular.35 dated 25 September 2012.
  • The liaison/branch office shall send to the Director General of Income Tax (International Taxation) [DGIT (International Taxation)] a copy of the annual operation certificate (AAC), followed by well-audited financial statements, including the receipt and payment account, and also to the DGP of the State concerned. This shall, as a general rule, be submitted annually at the end of March 31, along with the audited balance sheet on or before September 30 of that year.
  • Subject to comply with certain requirements as set out in A.P.DIR (Series Circular) No. 142 of 12 June 2014, powers relating to the transfer of properties of the Liaison / Branch Office/Project Office have been transferred to AD Category-1 banks.
  • To know more about each of these organisations or our robust legal and advisory services for the establishment of such offices anywhere in India
  • Please feel free to contact 9246536701
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Imam associates – Best Chartered Accountant in Hyderabad. Imam & Associates are one of the Chartered Accountants participating from the city Hyderabad, India. Liaison/Branch/Project Offices of Foreign Entities in India