Coupon Accepted Successfully!

[Insert date]
[Insert the recipient company address]
Dear Sirs,
Subject: Permission under Section 29 (1) (a) of the Foreign Exchange Regulation Act, 1973 for opening a liaison office in India

1. We advise that we are agreeable to your establishing a liaison office at [insert the place where company intends to establish office] for a period of [insert the no. of years for which approval granted] for the purpose of undertaking purely liaison activities viz to act as a communication channel between Head Office  and parties in India. You may note that-

The liaison office in India will not be permitted to bring out any publication in India. Further liaison office will not make available news, stories etc to any agency/ journal/ newspaper in India.
2. Please note that this permission has been granted subject to the following conditions:
  1. Except the proposed liaison work, the office in India will not undertake any other activity of a trading, commercial or industrial nature nor shall it enter into any business contracts in its own name without our prior permission.
  2. No commission/fees will be charged or any other remuneration received/ income earned by the office in India for the liaison activities/services rendered by it or otherwise in India.
  3. The entire expenses of the office in India will be met exclusively out of the funds received from abroad through normal banking channels.
  4. The Liaison office in India shall not borrow or lend any money from/ to any person in India without our prior permission.
  5. The office in shall not acquire, hold, otherwise than by way of lease for a period not exceeding five years, transfer or dispose of any immovable property in India without obtaining prior permission of the Reserve Bank of India under Section 31 of the Foreign Exchange Regulation Act, 1973.
  6. The Liaison office in India will furnish to our New Delhi Regional Office (on a yearly basis):
  1. a certificate from the auditors to the effect that during the year no income was earned by/or accrued to the office in India;
  2. details of remittances received from abroad duly supported by Inward Remittance Certificates;
  3. certified copy of the audited final accounts of the office in India; and
  4. annual report of the work done by the office in India, stating therein the details of the actual export or import, if any, effected during period in respect of which the office had rendered liaison services.
  5. The number of staff engaged/appointed and duties assigned to each staff.
  1. The person in charge of the liaison office in India will not have signing/ commitment powers except than those which are required for normal functioning for a liaison office on behalf of the Head Office.
  2. The liaison office will not render any consultancy or any other services directly/indirectly, with or without any consideration.
  1. In case you desire to open a head office account in the books of your liaison office in India, we hereby grant you our approval to maintain such an account subject to the conditions that the credits to the account should represent the funds received from head office through normal banking channels for meeting the expenses of the office an no other amount should be credited without prior permission of the Reserve Bank. Similarly debits to this account could be raised only for meeting the local expenses of the office. Audited transcript of the head office amount may be forwarded to our New Delhi Regional Office along with the annual accounts mentioned above.
  2. It is further clarified that the permission granted hereby is limited to and for the purpose of Section 29 only and shall not be construed in any way as regularising, condoning or in any manner validating any irregularities, contraventions or other lapses if any under the provisions of any other law for the time being in force.
  3. Please note to furnish to us the postal address of your liaison office in due course for our record. You may also note to address the correspondence in future to our New Delhi Regional Office.
  4. Please acknowledge receipt.
Yours faithfully,
[●] [Name and designation of Officer]
Reserve Bank of India

Test Your Skills Now!
Take a Quiz now
Reviewer Name