In addition to establishing a wholly owned subsidiary (or setting up a joint venture in India), a foreign company may establish its presence in India by setting up a liaison office, representative office, project or site office or branch. However, a branch of a foreign company attracts a higher rate of tax than a subsidiary or joint venture company. A l iaison off ice (also known as representative off ice) acts as a communication channel between the head office abroad and parties in India. It cannot carry on commercial activities in India and cannot earn income in India. The.
