A company registered outside Indian can open a Liaison Office or Branch Office in India. Companies have to obtain permission from RBI under the provisions of the Foreign Exchange Management Act (FEMA) to open a liaison office or branch office in India.
The basic criteria considered by the Reserve bank while sanctioning Liason/ Branch office
Track Record
⇒ For Branch Office: a Profit making track during the immediately preceding five financial years in the home Country
⇒ For Liason Office: a Profit making track record during the immediately preceding three financial years in the home Country.
Net Worth Requirements for Branch Office (BO) and Liaison Office (LO) in India (2025 Update)
For both types of offices, the parent foreign company must meet the following net worth conditions:
Branch Office (BO):
⇒ The parent company must have a minimum net worth of USD 100,000.
⇒ This is to ensure the company has sufficient financial strength to operate a branch office in India.
Liaison Office (LO)::
⇒ The parent company must have a minimum net worth of USD 50,000.
⇒ This lower requirement is because a Liaison Office has limited activities (e.g., acting as a communication channel) and cannot engage in commercial or revenue-generating activities in India.
Documents required for Branch & Liason Office of a Foreign Entity
1. Common Documents for Both Branch Office (BO) & Liaison Office (LO)
A. Documents of the Foreign Parent Company
⇒ Certificate of Incorporation of the foreign company (Notarized & Apostilled)
⇒ Memorandum of Association (MoA) & Articles of Association (AoA) of the foreign company (Notarized & Apostilled)
⇒ Board Resolution Authorizing Incorporation of the Subsidiary in India (Notarized & Apostilled)
⇒ Details of the Authorized Representative of the foreign company in India
⇒ Latest Audited Financial Statements for the past 5 years (Certified by a CPA/CA)
B. Documents of the Indian Directors & Shareholders
⇒ Identity Proof (Any One)
• PAN Card (Mandatory for Indian citizens)
• Passport (For Foreign Directors)
• Aadhaar Card
• Voter ID
• Driving License
• Passport
⇒ Residential Proof (Any One, Not Older Than 2 Months)
• Bank Statement
• Electricity Bill
• Telephone Bill
⇒ Digital Signature Certificate (DSC) of all directors (Mandatory)
⇒ Director Identification Number (DIN) (Can be applied during registration)
⇒ Passport-size Photographs of all directors
⇒ Email ID & Mobile Number of all directors
C. Proof of Registered Office in India
⇒ Office Address Proof (Any One, Not Older Than 2 Months)
Rent Agreement + No Objection Certificate (NOC) from the Landlord (if rented)
Property Ownership Document (if self-owned)
Latest Utility Bill (Electricity, Telephone, Water, etc.)
⇒ Bank Account Proof (Once the office is registered)
2. Additional Documents for Branch Office (BO) Registration
⇒ FEMA Declaration – Compliance with Foreign Exchange Management Act (FEMA) Guidelines
⇒ Copy of Business Plan/Project Report for intended operations in India
⇒ Letter of Comfort (LoC) from the Parent Company (If required)
3. Additional Documents for Liaison Office (LO) Registration
⇒ Letter of Intent stating the purpose of establishing a liaison office
⇒ Undertaking that the LO will not generate revenue in India
⇒ FEMA Declaration ensuring compliance with Indian regulations.