Sunday, March 6, 2011

Checklist for Establishment of Liaison Office in India

Establishment of Liaison Office Checklist
Eligibility criteria

Ø  A successful, profit making track record during the immediately preceding three years in the home country
Ø  Net Worth [total of paid-up capital and free reserves, less intangible assets as per latest Audited Balance Sheet or Account Statement certified by a CPA] shall not be less than USD 50,000 or its equivalent.

Document Checklist

1.      Letter from the Principal Officer of the Parent Company to RBI.
2.      Copy of Certificate of Incorporation / Registration attested by the Notary Public in the country of registration [If the original Certificate is in a language other than in English, the same may be translated into English and notarized as above and cross verified/attested by the Indian Embassy/Consulate in the home country.
3.      Certified copy of the certificate of incorporation and MOA and AOA of the Foreign Company. (English Translation of these documents required if they are in any other language.)
4.      Latest Audited Balance sheet of the applicant company. [If the applicants’ home country laws/regulations do not insist on auditing of accounts, an Account Statement certified by a Certified Public Accountant (CPA) or any Registered Accounts Practitioner by any name, clearly showing the net worth may be submitted]
5.      Banker’s Report from the applicant’s banker in the host country / country of registration showing the number of years the applicant has had banking relations with that bank.
6.      Nature and location: Nature and location of the activity of proposed branch/liaison office and parent company on parent company’s letter head.
7.      Sources of funds: A declaration to be obtained from the customer and the judgment should be made that the source is in line with the activities of the customer (parent company)
8.      Power of Attorney in favor of a person resident in India, authorizing him to accept on behalf of a company service of process and any notices or other documents required to be served on the company.
9.      A list of directors of the Company, containing particulars regarding name & surname in full, his usual residential address, nationality, business occupation and if he has no business occupation but holds any other directorships, particulars of that directorship or of some one of those directorships
10.  A list of secretary(s) of the Company, containing particulars regarding name & surname in full, his usual residential address (If any secretary otherwise the Director or Chief Executive may be assigned as Secretary)
11.  Extracts of Board Resolutions of the Foreign Company
12.  Documentary Proof of Establishment of office (E.g.: - Rent agreement, lease deed etc.)
Information’s Required from Your Side
Ø  Telephone Number(s) Fax Number(s), E-mail ID of the parent company
Ø  Amount of i)Paid-up capital, ii) Free Reserves/Retained earnings as per last audited Balance Sheet and iii) Intangible assets, if any
Ø  Brief description of the activities to be carried out by the Parent company
Ø  If the company had any previous Import or Export with India the provide the following details:
i) Value of goods imported from and / or exported to India by the applicant during each of the last three years:
a) Imports from India
b) Exports to India
Ø       Particulars of the existing arrangements, if any, for representing the company in India
Ø       Particulars of the proposed Liaison/ Branch Office
a) Details of the activities / services proposed to be undertaken / rendered by the office.
b) Place where the office will be located.
c) Phone number
d) E-mail ID
e) Expected number of Employees
Ø  Any other information which you wishes to furnish in support of the application that why you shall be allowed to establish a Liaison office in India. (If any)

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