Sands & Company
Delivering excellence in Accounting, Taxation, and Consultancy services with integrity and expertise.
A Liaison Office, also known as a Representative Office, serves as a business channel between a company’s principal place of business or head office and entities in India. It does not conduct any commercial, trading, or industrial activities, either directly or indirectly, and operates solely through inward remittances received from abroad via standard banking channels.
Project is funded directly by inward remittance from abroad.
Project is funded by a bilateral or multilateral financing agency.
Project has been cleared by an appropriate authority.
Company awarding the contract has been granted a term loan by a public financial institution or bank for the project.
Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential to do compliance with the tax rules. The bank account of the branch office can be opened after allotment of Pan Number by the Income Tax Department..
The application for registration of a office of a foreign company is filed in FNC to the reserve bank of India through AD Bank (Authorised Dealer). The AD Bank plays a crucial role as all the communication to the RBI has to be routed through them. We have excellent relationship with many banks in India, which certainly help in applying to the RBI and Follow up
After FNC Form is filed with the AD Bank, a request for verification of documents is sent to the banker of the foreign company. This process is also known as swift based verification. After receipt of confirmation of the documents from the foreign banker, the application is submitted to the RBI for their approval. The RBI may seek clarification or any additional document which need to be submitted.
For approval of the establishment of a office in India the Reserve Bank of India is the authority, which is also the central bank of India. The decision of RBI is on the case to case basis, and there is no standard rule which applies in all cases. After approval RBI allots a unique number to the office known as UIN. Usually, RBI decides within 2-4 months subject to its assessment being satisfactory.
After approval of the RBI for the establishment of the office in India, an application for registration of such office of the foreign company is filed within 30 days to the ROC. In case there are Indian directors the DIN number of such director is needed, and the digital signature of the authorised signatory is required to e-file statutory forms with the ROC for their approval..
Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential to do compliance with the tax rules. The bank account of the office can be opened after allotment of Pan Number by the Income Tax Department..
After the office is operational, there are various other compliance related activities, which depends on the nature of the business and the state-specific laws, which apply to all entities doing commercial activities. For example registration under shops and establishment act, Goods and Services Tax (GST), Professional Tax Act, Provident Funds Act, Employee State Insurance Act (ESIC), etc.
Foreign companies can establish a Branch Office (BO) in India with approval from the RBI, along with registration through the Registrar of Companies (ROC) and other necessary business registrations. A Branch Office is allowed to carry out all activities permitted for a Liaison Office and can additionally offer consultancy or technical support related to its products or services in India. It can import and export goods and also act as a buying or selling agent within the country. However, a Branch Office is not permitted to engage in the production or processing of goods in India, either directly or indirectly. Typically, the Branch Office’s operations should align with the business activities of its parent company. Profits generated by Branch Offices in India can be freely remitted abroad, subject to applicable tax payments.
Delivering excellence in Accounting, Taxation, and Consultancy services with integrity and expertise.