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As per the RBI guidelines, a foreign company can open Liaison Office and Head office in India. These offices have a limited scope to perform activities that are permitted in India.
In this article, we will discuss the difference between Liaison office and Head office.
Liaison Office is also known as a representative office. It is set up to explore the business and understand the investment climate. It can undertake only liaison activities. The Liaison office and head office are different from each other, except for the fact that these are established for the purpose of representing its parent company.
A branch office mirrors the function of a parent company. The offices are established to perform similar business operations as the foreign parent company at different locations in India. Branch offices can carry on substantially the same business as the parent company. The Liaison office and head office are different from each other, except for the fact that these are established for the purpose of representing its parent company.
The article talks mainly about the difference between Liaison office and Head office and the process of setting up, along with its advantages & disadvantages. As per the RBI guidelines, a foreign company can open Liaison Office[1] and Head office in India. These offices have a limited scope to perform activities that are permitted in India. The Liaison office and head office are different from each other, except for the fact that these are established for the purpose of representing its parent company and other objectives as discussed above.
Read our article: Liaison Office and Project Office under FEMA
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