Project office is a place of business to be the interests of the foreign company implementing a project in India. But excludes a Liaison Office. To set up project office in India, you can follow the given procedures.
Site office means a sub-office of the project office established at the site of a project. But it does not include a Liaison Office.
Set up a project office registration in India ?
1.Further note that Reserve Bank of India has given authorization for setting up a Project Office in India subject to the following conditions.
(a) The project office is secured from an Indian company, the agreement to effect a project in India.
(b) The project is funded straightly by ingoing payment from abroad.
(c) The project is funded by a multilateral or bilateral international financing agency.
(d) The project has been improved by an appropriate authorities in India.
(e) An entity or company in India awarding the contract. It has been allowed term loan by a bank in India or a public financial institution for the project.
2. Furnish a report to the related regional office to the reserve bank of India. The project office is set up, under whose jurisdiction is giving the details as :
(a) Name and address of the foreign company of their project office.
(b) Date of letter and reference number awarding the bond is mentioned in clause (ii) of regulation 5 of the FEM.
(c) Total amount of contract.
(d) Address and tenure of project office.
(e) Nature of project undertaken.
3. If the above conditions are not fulfilled then make an application to the reserve bank of India in Form.No. FNC-1 for permission to establish a project or site office in India.
4. Submit the application completed in all respects to the foreign exchange department, general manager, central office cell. reserve bank of India New Delhi Regional Office, 6, Parliament Street, New Delhi-110001, India.
5. To set up project office in India, you can open a foreign currency account of by foreign companies without RBI’s approval subject to conditions stipulated in Master Circular No. 7/2015-16 dated 01.07.2015.
6. Ensure that your project office does not undertake or carry on any other activity other than the activity incidental and relating to performance of the project that mention your company.
7. Remit outside India surplus of the Project on its closing net of applicable Indian taxes on production of the following documents. Establishing the said surplus to the satisfaction of the authorized dealer through whom the remittance is effected :
(1) Certified copy of the final audited project accounts.
(2) Chartered Accounts certificate presenting the form of arriving at the remittable surplus.
(3) Income tax assessment order or either documentary evidence presenting the payment of income tax and other applicable taxes.
(4) Auditors certificate representing that no legal liabilities in respect of the project are outstanding.
8. Note that foreign companies having project offices in India are permitted to open not only one foreign currency account. But also an additional foreign currency account for each project office establishment under general/specific approval of RBI subject to the same terms and conditions as applicable to the existing foreign currency account.
9. Each project office can start two foreign currency accounts, normally one denominated in USD and other in home currency, provided both are maintained with the same AD category-I.
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