Foreign companies engaged in manufacturing or trade activities can establish the Liaison office(LO) in India to
Reserve Bank of India will scrutinize the application based on the following criterion
- Whether 100% FDI is allowed in the sector
- Profit making track record of the foreign company during the immediate three financial years.
- Net-worth not less than USD 50,000 or its equivalent
- Place of Liaison office in India
- Liaison office should not earn any profit in India through any sources
- all the Expenses of the Liaison of office shall be paid by the parent company and the amount should be routed through Authorized dealer banks.
- Representing in India the parent company or group companies registered outside India.
- Promoting Exports or Imports
- Promoting Technical or Financial Collaborations between parent / Group companies or with their Joint ventures in India.
- Acting as a communication channel between the parent company and Indian companies.
Foreign Insurance company should obtain prior approval from Insurance Regulatory and Development authority to establish Liaison office.
Reserve Bank of India will scrutinize the application based on the following criterion
- Whether 100% FDI is allowed in the sector
- Profit making track record of the foreign company during the immediate three financial years.
- Net-worth not less than USD 50,000 or its equivalent
- Place of Liaison office in India
- Liaison office should not earn any profit in India through any sources
- all the Expenses of the Liaison of office shall be paid by the parent company and the amount should be routed through Authorized dealer banks.
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