As the name suggests, to liaise is to communicate & cooperate in order to facilitate a close working relationship between people or organizations.

Also known as a representative office, a liaison office helps a foreign entity to explore and understand the business environment of another country. Liaison Office acts as a communication link between the principal place of business and entities in India with which it has to liaise.

Following activities cannot be undertaken by a liaison office:

  1. Commercial
  2. Trading
  3. Industrial


Basic requirement to be fulfilled to set up a liaison office in India: A person resident outside India should have a profit making track record during the immediately preceding 3 financial years and a net worth of at least USD 50,000 or its equivalent.

Letter of Comfort: If the above criteria is not fulfilled then a letter of comfort presented by the parent company will suffice the given criteria.