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Liaison Office in India, Closure of Liaison Office in India WHAT IS LIAISON OFFICE? A Liaison Office (LO) functions as a representative office set up primarily to explore and understand the business and investment climate. A Liaison Office (also known as Representative Office) can undertake only liaison activities i.e. act as a communication channel between the Head Office abroad and Parties in India. The role of such offices is, therefore, Limited to collecting information about possible market opportunities, Source of supply, providing information about the parent company and its products to the prospective Indian customers or vice versa to its vendor. Expenses incurred for such offices are to be met entirely through inward remittances from the Head Office outside India.