What is the difference between liaison office and branch office?
Liaison and Branch Office are similar in terms of approval required and documents for setting up. However operationally they are varied, while a branch office mirrors the parent company, a liaison office only acts as a representative and has restrictions on operations.
What is liaison office?
a place of business
‘Liaison Office’ means a place of business to act as a channel of communication between the principal place of business or Head Office or by whatever name called and entities in India but which does not undertake any commercial /trading/ industrial activity, directly or indirectly, and maintains itself out of inward …
What is the purpose of liaison office?
A Liaison Office (LO) functions as a representative office set up primarily to explore and understand the business and investment climate. A Liaison Office (also known as Representative Office) can undertake only liaison activities i.e. act as a communication channel between the Head Office abroad and Parties in India.
Can liaison office enter into contracts?
Liaison Office: Liaison office means a business office which acts as a channel of communication between the head office (outside India) and parties in India. These offices are not permitted to involve into activities such as entering into any contracts with Indian residents, borrowing funds, trading, etc.
What is the meaning of branch office?
A branch office is a location, other than the main office, where a business is conducted. Most branch offices consist of smaller divisions of different aspects of the company such as human resources, marketing, and accounting.
Is a branch office a separate legal entity?
A Branch is a more independent entity that conducts business in its own name but still acts on behalf of the company. A Branch is not legally separate from the foreign parent company and so is also subject to the local laws governing the foreign parent company.
Is liaison office a permanent establishment?
As per Article 5 read with Article 7 of the relevant DTAA, a Liaison office would be taxable in India, in case it constitutes a ‘permanent establishment’ with its foreign parent in India.
How do I open a liaison office?
Steps to set up Liaison Office
- Designate a Bank and branch where your account will be opened (post-approval) who will be an Authorized Dealer Bank (AD Bank) for your Liaison Office in India.
- File an application with all necessary documents to the Reserve Bank of India (RBI) through the AD Bank.
- Obtain approval of RBI.
Who acts as a liaison officer between the company and stock exchange?
Company secretary is regarded as a liaison officer. Company secretary is mainly responsible for looking after the secretarial works. He generally maintains liaison with the board of directors, employees, shareholders, and other outside parties.
How do branch offices work?
A branch office is a location, other than the main office, where a business is conducted. A branch office will typically have a branch manager who will report directly to, and answer to, a management member at the main office.
Who can maintain a branch office?
pay expenses for the branch office and supervise it closely. However, an associate broker who obtains a license designating himself as an Office Manager may operate a branch office under the other broker’s overall supervision.
What is considered a branch office?