Foreign companies who want to establish their business operation in India must start a Liaison office. The aim of setting up a Liaison office is to discover the possible outcomes of business opportunities a company can receive in India by gathering all the necessary business information. Liaison office is the popular option for investors who want to explore & understand the business environment of India. The type of entity is beneficial for promoting the parent company & acts as the communication channel between the Indian and foreign companies.
The Liaison office was established with the aim of working as a bridge because it imports and exports from/to India, conducting market research, delivering feedback, and promoting technical & financial participation of foreign companies. Foreign investors love the opportunities the Liaison office delivers. Through this, foreign investors can limit their legal, financial, and administrative responsibilities.