Project Office in India
Foreign companies forming private limited company to execute a short period contract in India and facing lots of legal complexities from starting to closing the company which wastes lots of time and recourses of the company. To make easy entry and exit for a foreign company who wants to execute a project in India, RBI has made an option of Project office registration by which the company can open project office in India for a specific project with the prior approval of RBI and ROC and can close the project office after completion of the project. 'Project Office' means a business place in India to represent the interests of the foreign company to execute a project in India but excludes a Liaison Office.
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Eligibility for opening a project office
A foreign company may open project office in India provided it has got a contract to execute a project in India from an Indian company
- the project is funded directly by inward remittance from the foreign company abroad; or
- the project has been approved by a proper authority; or
- the project is funded by a bilateral/multilateral International Financing Agency; or
- a company or entity in India awarding the contract has been granted term loan for the Project by a Public Financial Institution or a bank in India.
Permissible Activities
A person resident outside India permitted by the Reserve Bank under these Regulations to establish a project office in India may undertake or carry on any commercial activity relating to the execution of that particular project only.
List of Documents Required
- Copy of the Certificate of Incorporation; Memorandum of Association (MOA) and Articles of Association (AOA) attested by the Notary Public in the country of registration. [If the Certificate is in a language other than in English, the same must be translated into English and notarized as above and cross verified/attested by the Indian Embassy/ Consulate in the home country]
- Bankers' Report from the applicant’s bank in the host country showing the number of years since when the applicant has had banking relations with that bank.
- Board Resolution of parent company for approval of opening of Project office in India
- Notarised copy of Board Resolution in favour of Mr/Ms/Miss, local Representative to sign & execute all the documents required for this purpose
- Notarised Identity & Address proofs of the person signing documents on behalf of parent company;
- Notarised Identity & Address proofs of the Authorised Representative;
- Notarised Identity & Address proofs of Directors of the parent company;
- Details of Project-Date of award, Awarding authority, amount of contract, Tenure of project office, Nature of project, Address of project office.
Process
-
1
A person resident outside India desiring to establish a project office shall submit an application in Form FNC to an Authorised Dealer Category-I bank.
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2
Every foreign company shall, within 30 days of establishment of its project office in India submit the Form-FC-1 to ROC.
Deliverable
- RBI approval letter
- Certificate of incorporation
- Company PAN card
- Company TAN number
India Entry Services
| Particulars | Company/LLP | Branch Office | Project Office | Liaison Office |
|---|---|---|---|---|
| Eligibility | No Criteria | Profit track record of 5 FY and net worth of USD 100,000 or more | No Criteria | Profit track record of 3 FY and net worth of USD 50,000 or more |
| Approval | ROC | RBI and ROC | RBI and ROC | RBI and ROC |
| Purpose/Activities | Commercial, trading, or industrial activities in India | Commercial, trading, or industrial activities in India except retail trading & manufacturing | To Execute a particular project in India | Representing, Promotion and communication |
| Sources of Funds | Capital and Profits | Head office and internally generated funds | Head office and internally generated funds | 100% from head office |
| Tax Rate | 15%-30% | 40% | 40% | Not Applicable |
| Minimum No. of Director/AR | 2 | 1 | 1 | 1 |
| Minimum No. of Director resident in India | 1 | 1 | 1 | 1 |
| Timelines | 7-10 Days | 3-4 Months | 3-4 Months | 3-4 Months |
| Know More | Know More | Know More | Know More |
FAQs
- Formal Contact of the Project
- Clearance of Project
- Foreign Funding
- Indian Funding
Reserve Bank Route
The primary business of a foreign company falls under the criteria where 100 percent Foreign Direct Investment (FDI) is allowed.Government Route
The primary business of a foreign entity falls under the criteria where 100 percent Foreign Direct Investment is not allowed. The Reserve Bank of India reviews applications from companies that come under the category of Foreign Non-Government Organizations/Non-Profit Organizations/Government Bodies/Department and the Ministry of Finance, Government of India.