The WazirX Hack: A Wake-Up Call for Cybersecurity
On 03 Sep 2024This incident highlights the critical importance of robust cybersecurity measures, especially for companies handling sensitive financial data.
A Liaison Office (LO) serves as a representative office formed specifically for exploring and understanding the business and investment climate. A Liaison Office (also known as the Representative Office) can only undertake liaison activities, i.e. act as a channel of communication between the Head Office abroad and Indian Parties. Therefore, the task of these offices is limited to gathering information about potential business opportunities, supply source, providing information about the parent company and its products to prospective Indian customers or vice versa to its supplier. Expenditures incurred for such offices shall be paid entirely by inward remittances from the head office outside India.
Features of Liaison office
a. The name of the Indian liaison office shall be similar to the parent organization.
b. AD Banker / Reserve Bank of India is the governing body for the Liaison Office.
c. The Liaison office has no ownership, it is merely an extension of the existing foreign company.
d. All the expenses of the liaison office shall be covered by the head office, therefore the funds shall only be received from the head office account.
e. The Liaison Office License is issued for three years and can be extended every 3 years.
f. The liaison office is not subject to taxes in India, as the income tax department does not have a mechanism to review and assess if the activities it undertakes result in any taxable income in India
g. Liaison offices are allowed to open current INR accounts in India that are not bearing interest. To open the accounts, these offices are expected to contact their Authorized Dealers.
Following Activities In India: A Liaison Office Can Undertake:
PRE-REQUISITE
The foreign parent company must have a three-year profitable track record in a row & its net worth of more than $50,000 as per auditors’ statement
PROCEDURE FOR SETTING
Any foreign company which intends to set up a liaison office in India is required to obtain prior approval from Reserve Bank of India (RBI), which may take up to 3-4 weeks to process the application. Approval is usually issued for 3 years and can be extended upon its expiry. A corporate body incorporated outside India (including a corporation or other individual association) wishing to open a Liaison Office (LO) shall obtain such permission by submitting an application in Form FNC to the Authorized Banker (AD) in India.
Following attachment must be attached with the form:
If the LO applicant is a non-governmental/non-profit organization engaged in any of the activities under the 2010 Foreign Contribution (Regulation) Act (FCRA), they will need to obtain an FCRA registration certificate instead of seeking FEMA permission.
Once approved by RBI, a Unique Identification Number (UIN) shall be allocated to the Liaison office. Each RBI-registered liaison office shall be registered as a corporate entity with the Ministry of Corporate Affairs (MCA). It is registration as Liaison office is in itself a foreign company established in India. The MCA will then assign Corporate Identity Number (CIN) to these companies. The MCA will then assign Corporate Identity Number (CIN) to these companies. Once MCA allocates the CIN, then Revenue Authority requires the LO to obtain the Permanent Account Number (PAN) & Tax Deduction Number (TAN).
After proper scrutiny, AD bank shall forward the application to RBI for approval along with its comments/recommendations. RBI will accept the applications under two routes:
Automatic route – Where the foreign entity's main business falls within sectors were under the automatic route 100 percent FDI is permissible.
Approval route – Where the foreign entity's main business falls within sectors were under the automatic route 100 percent FDI is not allowable. In consultation with the Ministry of Finance, Government of India, the RBI may accept applications from organizations falling under this category and those from non-governmental organizations.
a. 2 Copies of the Incorporation / Registration Certificate (notarized and certified by the Indian Embassy) (one copy each for RBI & ROC); If it is in a language other than English then it is required to translate the same notarized and certified by the Indian Embassy.
b. 2 Copies of the Memorandum & Articles of Association (English Translation) certified by the Embassy of India
c. Details of Last Three Years Import / Export from India (Signed by letterhead, five copies)
d. Latest 3 years Audited Balance Sheet (English translation) accredited by the Embassy of India
e. Existing arrangements, eg direct/indirect agent, if any in India
f. Details on the activities to be carried out in India
g. Product details/services to be rendered by the parent company in India. Often, if any, have any literature on the business such as brochures/product catalogs and literature. Indian regulators (RBI) love this literature and help to complete the cycle quickly
h. With a signature that we will give to you, some other forms, documentation that be needed.
i. Activities to be conducted with a branch office in India.
Call or WhatsApp us on +91-99991-39391 for free consultation from our team of experts. You can also email us on [email protected].
We share the detailed and reasonable estimated costs, documents and prerequisites for the complete process before starting the process to ensure transparency.
Our team warrants hassle free documentation. We collect the necessary documents and share the relevant drafts to ensure a timely filing and delivery.
Upon collecting the necessary documents and information, we waste no time in preparation and filing of your application. development on your application is brought to your attention.
On successful completion of the case we share all the relevant documents electronically and physically along with an assurance to pay you back if something is wrong.
PARTNERSHIP As per section 4 of the partnership act 1932, the partnership is the relationship between persons who have shared the profits of business carried on by all or any of them acting for all. The one who have entered into partnership with another
An alternative corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership is known as a limited liability Partnership (LLP).
Start your business journey with Corpzo's efficient Private Limited Company Registration. Experience seamless incorporation and join our network of successful businesses.
One Person company means company incorporated under the company’s act 2013 having only one person as a member. It is a new form of business which is came into existence through the companies act in the year 2013. It is a form of business having a separa
A public company means a company that, Is not a private company and has a minimum paid-up Capital Required for incorporating a public limited company is NIL. As per the Companies (Amendment) Act 2015, the minimum capital required has been omitted.
A producer company is a corporate body regulated by the provisions of Chapter IXA (Sections 581A to 581ZL) of the Companies Act, 1956 (CA, 2013 has no clear provision concerning producer companies and thus Chapter IXA of the Companies Act, 1956
BRANCH office is set up in India by a foreign company to conduct the Branch operation for its business. The foreign company may have any revenue from the Indian branch office only from the activity permitted by the Indian Reserve Bank.
A Liaison Office (LO) serves as a representative office formed specifically for exploring and understanding the business and investment climate. A Liaison Office (also known as the Representative Office) can only undertake specified liaison activities.
A "Project Office" (PO) is an establishment where a foreign company conducting a project in India can conduct business. A company only wants to be present in India for a short while, setting up a project office is the best option.
Bespoke advisory focused on mission critical legal, financial and business aspects.
At Corpzo, our clients’ success stories speak volumes. Discover how businesses across various industries have leveraged our expertise to achieve their goals. Read firsthand accounts of our commitment to excellence and the impact we've made in supporting their growth and compliance needs.
Working with Corpzo for our Alternative Investment Fund registration was a remarkable experience. Their deep understanding of regulatory requirements and meticulous attention to detail ensured a smooth and efficient process. The team was always available to address our queries and provided invaluable support at every step. With Corpzo's expertise, we successfully registered our AIF without any hurdles. Highly recommended for anyone navigating the complexities of AIF registration!
At Corpzo, we are dedicated to empowering our clients with valuable knowledge and insights. Our team of experts regularly shares in-depth articles, comprehensive guides, and industry updates on Knowledge Varsity. Whether you're looking for the latest trends in alternative investment funds or need expert advice on navigating the complexities of drug licensing, our resources are designed to keep you informed and ahead of the curve. We believe that informed clients make better decisions, and our goal is to provide you with the expertise you need to succeed.
Explore CorpZo Insights© 2024 Ultiwise Ventures Private Limited.
From Mumbai Recently Purchased @Partnership Firm Registration