LO or a representative office can be set up by a foreign company after making an application to the Reserve Bank of India. LO acts as a communication channel between the parent company and entity established in India. The main function of a LO is collection of information, promotion of exports/imports and facilitates technical/financial collaborations. It cannot undertake any commercial activity in India directly or indirectly and cannot generate any income in India.
For setting up a LO, the applicant foreign company should be engaged in manufacturing or trading activities with profit in the immediate preceding three financial years and should have a net worth of not less than USD 50,000 in its home country. All the expenses are to be met entirely through inward remittances of foreign exchange from the Head Office outside India.
We at AcuCorp ensure to undertake your comprehensive filing requirements and obtain necessary approvals from the Reserve Bank of India and Registrar of Companies. We aim to complete the process within 45-60 working days post obtaining necessary details from our clients.