An Indonesian company can open a liaison office in India if it has made profits in each of the last three years and has 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 Indian authorised dealer bank with the company's deed, AHU approval and audited accounts, notarised, apostilled and translated. The office then registers with the Registrar of Companies within thirty days.
- Document route
- Indonesian notary (notaris), then apostille through the AHU system
- Time difference
- IST is 1h30 behind Jakarta, 2h30 behind Bali and 3h30 behind Papua (no daylight saving)
- Law
- FEMA BO/LO/PO Regulations 2016
- Applied to
- AD Category-I bank (Form FNC)
Branch & Liaison Office from Indonesia: how it works
We first check which office suits your activity. A liaison office can represent the Indonesian company, promote its products and coordinate with Indian buyers, but cannot earn income. A branch office can carry out permitted activities such as import and export, consultancy or research. We then gather documents: the deed of establishment and latest amendment with law ministry approval, audited financial statements, a board resolution and details of the proposed head of office, all certified by a notaris, apostilled and translated into English. If the profit or net worth test is not met, a parent company's letter of comfort may help.
After the bank and, where required, the RBI approve, the office files Form FC-1 with the Registrar of Companies, obtains a PAN and opens a bank account. It must file an annual activity certificate with the bank and keep accounts. A branch is taxable on its Indian income and files Indian returns. We also advise on avoiding permanent establishment risk: a liaison office whose staff negotiate prices or sign contracts with Indian buyers may be treated as part of the Indonesian company's taxable business in India.
What clients in Indonesia should know
- Indonesian accounts and deeds in Bahasa Indonesia need certified English translations before an Indian bank will process the application.
- Coal and mineral traders should consider whether specific Indian sector rules affect what the office may do.
- The office's expenses must be funded by remittances from Indonesia; it cannot borrow locally or earn commission.
Step by step from Indonesia
Video consultation
A call at a time that suits Indonesia, after we have read your documents.
Documents signed in Indonesia
Indonesian notary (notaris), then apostille through the AHU system
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 Indonesia where needed.
The full guide
This page covers what changes when you are in Indonesia. 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 Indonesia and the Doing Business in India practice area.
Questions from clients in Indonesia
How long does approval of a liaison office take?
Often a few weeks to a few months, depending on the bank and whether the case needs to go to the RBI.
Can an Indonesian manager run the Indian office?
Yes, on an Indian employment visa, with Indian tax on the salary for work done in India.
Can the liaison office later become a subsidiary?
Not directly, but you can set up a subsidiary and then close the liaison office after clearing its obligations.