Foreign Liaison Office

Foreign Liaison Office: A Simple Way for Global Companies to Build Presence in India

A Foreign Liaison Office is the easiest way for an international company to create a non-commercial presence in India. It’s designed for businesses that want to study the Indian market, coordinate activities, promote their brand, or maintain communication with Indian customers and partners — without engaging in any direct business or revenue-generating activities.

This structure is perfect for companies exploring India before deciding on full-scale entry.

No Commercial Activities

A Liaison Office cannot earn revenue or invoice customers in India. Its role is limited to communication, brand promotion and coordination. This keeps the structure simple and low-risk for foreign companies that want clarity before expanding further.

Common permitted activities include:
• Promoting the parent company’s products or services
• Acting as a communication channel between India and the headquarters
• Coordinating business activities
• Conducting market research
• Facilitating partnerships or sourcing

Easy Market Research and Representation

A Liaison Office helps foreign businesses understand Indian customer behaviour, assess demand, explore partnerships and identify future opportunities. It’s the perfect first step for companies unsure about setting up a subsidiary or branch office.

Requires RBI and FEMA Approval

Foreign Liaison Offices must be approved by the Reserve Bank of India (RBI) and follow FEMA regulations. Once approved, the office can legally operate in India under defined restrictions.

Low Compliance and Simplified Operations

Since no commercial activity is allowed, the structure is simpler than a branch or subsidiary. Compliance focuses on annual filings, audits and RBI reporting.