• Certificate of incorporation
• PAN
• TAN
• Bank Account opening

Process for opening of liaison office in India

Apply for Digital Signature of Authorised signatory:

Our expert team at sterling tax partner will help to apply and get the DSC within 1-2 working after completion of all documentation.

Obtaining the approval of AD Bank:

After the DSC of authorized signatory is obtained, as next step, will seek approval for opening the liaison office in India. Here, our expert team at Sterling Tax Partners help to submit the form FNC to AD Category Bank-1. We have network with many Banks in India, which operates as an AD Category-1 Bank for foreign Companies.

Verification of KYC from Banker of Foreign Company:

As mentioned before, liaison offices can be set up in India, usually with the approval of AD Bank itself if 100% FDI is allowed in the sector. However, approval from RBI will also be required if 100% FDI is not allowed in the sector. Our expert team would help to analyse whether the activity pertains to that sector where 100% FDI is allowed or not.

Registration of Liaison Office with the ROC:

After the approval from RBI or AD Bank our expert team at Sterling Tax Partners help to file the form FC-1 for registration of liaison office with Registrar of Company.

Receive Certificate of Incorporation, PAN Card, Tax Deduction Number & Bank A/c Opening

Upon successful registration by the ROC, the liaison office of the foreign company will receive a Certificate of Incorporation from the ROC, a PAN and a TAN from the Income Tax Department to comply with the tax and TDS related provisions of the Income Tax Act of 1961.

Annual Compliance for opening the Liaison office in India

Our team at Sterling tax partners has much expertise to meet the compliance for the liaison office of foreign Company in India. We assist the liaison office to meet all compliance with quality and timely manners.

Filing of Annual Return to ROC.

This return is due within 60 days of the financial year’s end, or by May 31.

Annual Activity Certificate (AAC)

This certificate is due on or before September 30 each year. It’s issued by a chartered accountant (CA) and states that the RBI permitted the LO’s activities for the financial year.

Foreign Liabilities and Assets (FLA) return

This return is due by July 15 each year if the LO has foreign assets or liabilities. It must be based on the LO’s audited or unaudited accounts.

Filing Annual Financial Statements

Annual Financial Statements will have to be filed within 6 months from the date of closing of the Financial Year. These must be audited by a practicing Chartered Accountant.

Filing annual Income Tax Returns

Liaison Office is liable to pay income tax on the income it generates from activities which constitute a “business connection” with its parent company. For this purpose, it is considered as a Foreign Taxpaying entity under the Income Tax Act, 1961. So, it will have to pay Income Tax and file Income Tax Returns before the 31st of July every financial year for the previous financial year.