A Japanese company can open a liaison office in India if it has a profit-making track record of three years and net worth of at least USD 50,000, or a branch office with five years of profits and USD 100,000 net worth. The application goes through an authorised dealer bank, with the Japanese company's certificate of registered matters and audited accounts apostilled. A liaison office cannot earn income in India; a branch can carry on specified activities.
- Document route
- Japanese notary (koshonin), then MOFA apostille
- Time difference
- IST is 3h30 behind Japan all year (no daylight saving)
- Law
- FEMA BO/LO/PO Regulations 2016
- Applied to
- AD Category-I bank (Form FNC)
Branch & Liaison Office from Japan: how it works
We first test which office fits your plans. A liaison office suits representation, market research and coordination; a branch office suits export and import trading, consultancy or research for the group; and a project office suits a specific contract, such as engineering work for an Indian customer. We then assemble the application: the form, the certificate of registered matters and the last audited financial statements, apostilled in Japan, a board resolution and a letter of comfort from the parent if the net worth test is not met. The application is filed with an Indian bank that handles such applications.
Once approved, the office receives a unique identification number and must register with the Registrar of Companies within thirty days by filing Form FC-1. It then obtains a PAN, opens a bank account and leases premises. Every year it files an annual activity certificate with the bank and accounts with the Registrar, and a branch also files an Indian tax return. A liaison office that starts earning income or negotiating contracts risks being treated as a taxable permanent establishment of the Japanese company, so the office's actual work should match its permitted activities.
What clients in Japan should know
- Japanese audited accounts follow Japanese accounting standards; Indian banks accept them, but an English version certified by the auditor saves questions.
- A liaison office approval is usually granted for a limited period and must be extended before expiry if the office continues.
- If the Japanese company later forms an Indian subsidiary, the liaison office can be closed with a final certificate and repatriation of its remaining funds.
Step by step from Japan
Video consultation
A call at a time that suits Japan, after we have read your documents.
Documents signed in Japan
Japanese notary (koshonin), then MOFA apostille
Work in India
Our team files, appears and follows up in India, and shares scans of everything filed.
Result and handover
Certified copies and originals are couriered to you in Japan where needed.
The full guide
This page covers what changes when you are in Japan. For the law, the documents and the step-by-step procedure, read our main page on Branch & Liaison Office, or see all services for clients in Japan and the Doing Business in India practice area.
Questions from clients in Japan
Can a liaison office sign sales contracts with Indian customers?
It should not. Signing or negotiating contracts on behalf of the parent goes beyond permitted activities and can create a permanent establishment for Indian tax.
How long does approval take?
Often several weeks to a few months, depending on the bank and whether any referral to the RBI or the government is needed.
Can a Japanese employee head the office in India?
Yes, on an Indian employment visa. Their salary and Indian tax position need to be planned from the outset.