Prospective companies and investors looking to enter India must
carefully consider their options for investment and available
avenues for establishing a business presence.
Liaison offices (LOs) are a popular option for foreign investors
exploring the Indian market for the first time, and unsure of how
the country's liberalizing FDI caps will affect their
business.
In contrast to other business structures, LOs allow foreign
companies to establish a light footprint in India while keeping
their financial, legal, and administrative commitments low.
Here, we outline the functions and requirements for liaison
offices operating in India.
Setting up a liaison office in India
Foreign companies can open a liaison office in India to
facilitate and promote the parent company's business
activities, and act as a communications channel between the foreign
parent company and Indian companies.