Foreign company

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Yes, a newly established foreign company can open a liaison office in India, provided it obtains approval from the Reserve Bank of India (RBI). These offices serve as a communication channel and help foreign companies explore and promote their business activities within the Indian market. To qualify, the foreign entity must have a profit track record from its home country for the previous three years and meet the net worth requirements set by the RBI.

swati yadav

swati yadav (Querist)

14 September 2020 Can a newly established foreign company open a liasion office in india.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 September 2020 Yes, Foreign companies can open a liaison office in India for promoting and facilitating the foreign company business activities and can act as best communication channel. With the liaison office, the foreign company will get help in entering into Indian market and exploring and studying the Indian market situation for their business growth. Foreign corporations are permitted to open liaison/representative offices in India (subject to obtaining specific approval from the RBI), to undertake liaison activities on their behalf. These offices act as a communication channel between the Head Office of foreign corporations and parties in India.

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swati yadav

swati yadav (Querist)

14 September 2020 Can a newly form foreign company open a liasion office even if it doesnt have a 3 year profit track record

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 September 2020 The Foreign entity before opening a liaison office must qualify the following conditions:

Must have generated profits from operations in the home country in previous three years.
Must have net worth as required by RBI in the latest audited balance sheet

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