What is Liaison Office ?
‘Liaison Office’ means a place of business to act as a channel of communication between the principal place of business or Head office and the Indian Place of business.
This office, however, does not undertake any commerical / trading/ industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through the normal banking channels.
A profit making track record during the immediately preceding three financial years in the home country and net worth of not less than USD 50,000 or its equivalent.
A liaison office is given registration for a period of three years. the branch office/liaison office may submit the Annual Activity Certificate as the end of March 31 along with the audited financial statements including receipt and payment account on or before September 30 of that year.
In case the annual accounts of the office are finalized with reference to a date other than March 31, the AAC along with the audited financial statements may be submitted within six months from the due date of the balance sheets to the Authorised Dealer category-bank and the Director General of Income Tax (International Taxation).
(According to CS Executive – FEMA)