Foreign companies looking to establish a presence in India can choose between a Liaison Office, Branch Office, or Project Office, each serving different purposes:

Liaison Office: Primarily used for communication and coordination, a Liaison Office acts as a representative office that can conduct market research, promote the parent company’s products, and act as a channel of communication between the head office and Indian entities. It cannot undertake any commercial activities or generate income in India.

Branch Office: A Branch Office can conduct business activities such as import/export of goods, consultancy, and other service-oriented activities, with approval from the Reserve Bank of India (RBI). Unlike a Liaison Office, it can generate income but is limited to specific activities authorized by the RBI and cannot engage in manufacturing or processing.

Project Office: Set up for executing specific projects in India, a Project Office is temporary and exists only for the duration of the project. It is typically used by foreign companies awarded a contract by the Indian government or other recognized entities. A Project Office can only operate within the scope of the project it is established for and is dismantled after project completion.

Each office type varies in its permissible activities, duration, and tax implications, making it important for foreign companies to select the structure that aligns best with their goals in India. Visit - https://www.companiesnext.com/blog/comparative-analysis-of-liaison-office-branch-office-and-project-office