Home / India Entry / Liaison Office
A representative, non-commercial presence to understand and engage the Indian market.
Non-commercial by design
Research, promotion, coordination
No trading, invoicing or revenue
Non-commercial presence
Activity limits apply
Reporting and compliance
A liaison office is generally used by a foreign company that wants a representative presence in India without undertaking direct commercial or revenue-generating activity. It is a limited-purpose structure that may support communication, market research, promotion, coordination, and representation of the foreign parent company.
A liaison office is not meant for trading, invoicing, selling, manufacturing, consulting revenue, or commercial execution in India. Its role is representative. This distinction is important because many foreign companies initially consider a liaison office for simplicity, but later discover that their actual business plan requires a subsidiary, branch office, or project office.
Foreign companies exploring the Indian market before committing
Groups needing communication, coordination, or market research only
Parents that do not yet intend to earn revenue in India
The expenses of a liaison office are generally supported through inward remittances from the foreign parent through permitted banking channels. The office must remain within the approved scope of activity and maintain records to demonstrate that it has not crossed into commercial operations.
Eraqus Advisors helps clients evaluate whether a liaison office is suitable for their India objectives, activity restrictions, documentation, approval considerations, annual reporting, funding discipline, and compliance expectations.
Strict activity restrictions, no trading, invoicing, or revenue in India
Funding through inward remittances via permitted banking channels
Records demonstrating the office stays within approved scope
Annual reporting and compliance obligations
Whether your real plan actually needs a subsidiary or branch office
A liaison office can be useful when a foreign company wants to understand the Indian market, communicate with customers or partners, coordinate with local stakeholders, or establish a non-commercial representative base. It should not be used where the company intends to sell, invoice, execute contracts, or earn revenue in India.
Discuss your requirement and we will help you understand the structure, documentation, and compliance that fit your situation.
No. A liaison office is representative in nature and cannot undertake trading, invoicing, selling, manufacturing, or other commercial activity. If revenue is intended, another structure is required.
Its expenses are generally met through inward remittances from the foreign parent via permitted banking channels, with records maintained to show it stays within scope.
A direct India presence as an extension of the foreign parent, for defined, permitted activities.
A long-term India platform with ownership control for foreign parent companies.
Tell us where your business stands today and what you are planning next. We will help you understand the structure, documentation, and compliance that fit your situation.