Branch Office and Liaison Office

Difference between branch office and liaison office, branch office income tax return, liaison office income tax return, liaison office vs branch office

Branch Office and Liaison Office

One of the simplest mode to set up your entity in India - set up liaison offices and branch offices with RBI permission. These are amongst one of the most popular structures adopted by our clients while they are new to Indian market. Preferred for ease of opening and running, these structures are ideal for the companies wishing to 'explore' Indian market.

Liaison office :

It can only up liaison activities in India and can act as a channel for communication between its head office abroad and Indian parties. It cannot undertake any commercial activities in India. Therefore, when the purpose of foreign company is to do water testing in India without indulging in full-fledged commercial activity. It opts for Liaison office registration India.

It can act as a channel of communication between the head office abroad and parties in India. It is not allowed to undertake any business in India and cannot have any income in India.

Branch office :

Foriegn companies engaged in manufacturing and trading activities abroad allowed Branch office registration in India. Therefore, when the purpose of the foriegn company is to do engage in manufacturing and trading activities India, its opt for Branch office registration.

Companies incorporated outside India and engaged in manufacturing or trading activities are allowed to setup branch offices with specific approval of the RBI. Normally, the Branch office should be engaged in the activity of the parent company.

Our team of company secretaries and Chartered Accountants are experienced to understand nuisances of forming a branch / liaison office in India for an overseas company. If you are not clear and are evaluating your options for an ideal structure, our team would be glad to assist you