What are the criteria for registering a Liaison Office (LO) in India?

The Foreign Exchange Department of the Reserve Bank of India (RBI) will assess the application for registering an LO based on three criteria: investment route, profitability and net worth. Foreign enterprises investing in industries where they are allowed to take up 100% of the stakes are assessed through the Automatic Route. Otherwise, they are assessed through the Government Route. Meanwhile, the foreign investors must be able to show that they were profitable for the three years immediately preceding the application and also that they have a net worth of US $50,000.