A Liaison office operates as a representative office. Setting up a liaison office in India is the initial stage of exploring and understanding the business and investment type of the country. A Liaison Office can take part in liaison activities like building communication between parties in India and the Head Office in foreign countries.
So the role of such an office is limited to acquiring enough information on possible market opportunities in India, providing adequate details of the parent company and its products, and rendering enough particulars on the source of supply to the Indian consumers, or vice versa to its vendor.