What are liaison offices and what are the pros and cons of using them to explore investment opportunities in India?

Liaison offices offer foreign investors a method to explore business opportunities in India. Although liaison offices are prohibited from engaging in direct commercial activity, they allow investors to facilitate communication with possible business partners, explore market conditions, or oversee the management of indirect business activities in India. Compared with branch offices, liaison offices are relatively quick and cheap to open, and thus provide foreign investors a stepping stone towards establishing operations in India.