Wednesday, April 3, 2013

Formalities for Registration of Liaison , Renewal of Liaison office In India

Setting –up of Liaison office in India will be under Approval Route

As per the Notification No. 22/2000, dated 3-5-2000, no person resident outside India shall establish a office without prior approval of RBI. Therefore, before setting up of a branch/liaison office, approval of RBI should be taken. Application in Form FNC-1 is required to be made.

What are the documents to be filed along with Form FNC-1?

(1) Form FNC-1- Available in RBI website.

 (2) English version of the Certificate of incorporation/registration or memorandum of articles of association of the Foreign Company which wishes to set-up liaison office in India.

3) The above mentioned documents should be attested either by the Indian

Embassy or a notary public of that country should attest this document

4) Latest Audited Balance Sheet of the foreign company

5) Complete and exhaustive details of the activities that is going to be carried out in India by the foreign company

6) POA in favour of the Indian agent or consultant

7) Form FNC-1 should be signed by the foreign company authorised signatory ( a director ) and the Indian agent or consultant  is not authorised to sign the above.

Annual Filing Formalities

Every year , a certificate from Chartered Accountant  is to be filed to the regional office of the RBI.

However , the law does not require a liaison office to file audited statement of Indian operation but it is prudent practice to enclose the same.

Renewal of  Liaison Office

Renewal letter may be sent to the regional office of RBI well before the expiry of the renewal date. No need to send the renewal in Form FNC-1. Optionally , the LO can enclose the MOA and annual activity report and audited accounts with the renewal application.

Registration of All Liaison office with the Registrar of Companies (ROC) New Delhi.

All LO in India after getting the approval from RBI for establishing LO in India  shall have to register the same with ROC , New Delhi compulsorily .Renewal of Liaison Office is also to be reported to ROC , New Delhi

Foreign Companies carrying on business in India have to file prescribed documents to Registrar and file its annual accounts every year.
Form NO
Documents to be delivered by Foreign Company for registration
·         Change in the Particulars of the Authorized Person
·         Change in the Principal Place of Registered Office
·         Annual Accounts & List of Place of Business
·         Cessation of Business
·         Further, Department of Company affairs has clarified that if the foreign company has only liaison office in India and has obtained RBI permission, it should only produce copy of letter of RBI and statement of receipts and payments made by Indian branches of the foreign company. Such statement should be certified by Chartered accountant and authorized representative of the company.

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