A company registered outside Indian can open a Liaison Office or Branch Office in India. Companies have to obtain permission from RBI under the provisions of the Foreign Exchange Management Act (FEMA) to open a liaison office or branch office in India.
The basic criteria considered by the Reserve bank while sanctioning Liason/ Branch office are
…. For Branch Office - a Profit making track during the immediately preceding five financial years in the home Country
….. For Liason Office - a Profit making track record during the immediately preceding three financial years in the home Country.
The net worth means the equity capital and the accumulated profits less Intangible assets as per the latest Financials certified by Certified Public Accounts in such country.
For Branch office - Not less than USD 1,00,000 or its equivalent
For Liaison Office - Not less than USD 50,000 or its equivalent