A prominent UAE-based commercial conglomerate, with diversified operations across the Middle East and North Africa, sought to establish its presence in India as part of its broader international expansion strategy.
A prominent UAE-based commercial conglomerate, with diversified operations across the Middle East and North Africa, sought to establish its presence in India as part of its broader international expansion strategy. Given the group’s primary objective was to explore the Indian market, build strategic relationships, and represent the interests of its overseas headquarters—without engaging in direct commercial transactions—it was advised to pursue the establishment of a Liaison Office (LO).
Setting up a Liaison Office in India involves rigorous scrutiny and regulatory approvals, particularly under the Foreign Exchange Management Act (FEMA), 1999. The Reserve Bank of India (RBI), through its Authorized Dealer (AD) banks, governs the process and evaluates applications based on sectoral eligibility, financial standing, and the proposed business activity. The client required a comprehensive legal and procedural advisory to ensure a smooth and compliant establishment.
Shepherd Knight LLP was appointed as the legal and compliance counsel to execute the India entry through the LO model. The engagement was strategically structured to offer end-to-end legal, regulatory, and operational support across multiple authorities and jurisdictions.
The Liaison Office was successfully operationalized within three months from the initial mandate. All statutory registrations were obtained, and a compliance framework was institutionalized to ensure zero regulatory breaches. The client now benefits from a strategic foothold in India while maintaining minimal tax exposure and clear segregation from revenue-generating activities. This structure supports their long-term India strategy with a solid regulatory foundation.
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