What is the procedure to be followed for obtaining Reserve Banks approval for opening Liaison Office / Representative Office?
Ans. Liaison office can carry on only liaison activities, i.e. it can act as a channel of communication between Head Office abroad and parties in India. It is not allowed to undertake any business activity in India and cannot earn any income in India. Expenses of such offices are to be met entirely through inward remittances of foreign exchange from the Head Office abroad. The role of such offices is, therefore, limited to collecting information about possible market opportunities and providing information about the company and its products to the prospective Indian customers. The opening and operation of such offices is regulated by the Foreign Exchange Management Act, 1999 (FEMA). Approval from the Reserve Bank of India (RBI) is required for opening such offices. The companies desirous of opening a liaison office in India may make an application in form FNC-1 along with the documents mentioned therein to Foreign Investment Division-I, Exchange Control Department, Reserve Bank of Indi
Related Questions
- Which application form is to be used for making an application to Reserve Bank for opening branch or liaison or project office etc.?
- What is the procedure to be followed for obtaining Reserve Banks approval for opening Liaison Office/Representative Office?
- What is the procedure to be followed for obtaining Reserve Banks approval for opening Liaison Office / Representative Office?
