alpa wani (practising) (26 Points)
22 March 2009Our company is a France based company. Wants to establish a liaison office in India with a Indian company. They will further enter into a joint venture.
I woul like to know the compliances and procedures to be followed for opening a liaison office in India after filling form FNC - 1?
Kumar
(Legal Consultant)
(358 Points)
Replied 23 March 2009
Dear Ms.Wani,
To establish the liaison office of your France based company you need to take approval through FNC-1 form from RBI Central office,there is no role to be played by the Indian company to establish liaison office here in India.Depending upon the activities of proposed joint venture company here in India at later stage you have to take approval from appropriate authority to form JVCo.
Please note that liaison office only can act as the centre of communication window between your France based company & India and it is merely act as an extention office to gather information and transmit to its head office .Liaison office can'nt take up any short of commercial activities in India and it should be maintained on the expenses of your France based company.
Regards,
CAclubindia
