Parameters to be met:
• Track Record – a profit making track record during the immediately preceding five financial years in the home country. – certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name called.
• Net Worth – [total of paid-up capital and free reserves, less intangible assets as per the latest Audited Balance Sheet or Account Statement certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name called] — not less than USD 100,000 or its equivalent.
Documents required:
- English version of the Certificate of Incorporation / Registration by Indian Embassy / Notary Public in the Country of Registration.
- Memorandum & Articles of Association attested by Indian Embassy / Notary Public in the Country of Registration.
- Latest Audited Balance Sheet of the applicant entity
- Profit making Track record for the immediately preceding five financial years as certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name called.
- Net Worth not less than USD 100,000/- as certified by a Certified Public Accountant or any Registered Accounts Practitioner by whatever name called.
Liaison Office Registration Process in India:
- Application for DSC
- Filing of Application with RBI
- KYC document verification from bank
- RBI Approval for Office registration in India
- Registration of Liaison Office with the Registrar of Companies
- PAN
- TAN
- Opening of Bank Account
- GST registration
Validity period 3 years. Liaison office has to renew its permission after 3 years.
Exception to the above: Construction Development & NBFC has to renew its permission after Two Years
Closure of Branch Office:
At the time of winding up of Branch offices the company has to approach the designated AD Category – I bank with the following documents:
- Copy of the Reserve Bank’s permission/ approval from the sectoral regulator(s) for establishing the BO.
- Auditor’s certificate – i) indicating the manner in which the remittable amount has been arrived at and supported by a statement of assets and liabilities of the applicant, and indicating the manner of disposal of assets.
- No-objection / Tax Clearance Certificate from Income-Tax authority for the remittances.
- Confirmation from the applicant/parent company that no legal proceedings in any Court in India are pending and there is no legal impediment to the remittance.
- A report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 1956 or 2013 , in case of winding up of the Office in India.
- A report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 1956, in case of winding up of the Office in India.