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Project Office RegistrationThe RBI has issued general permission for the establishment of a Project Office by a foreign corporation in India, provided a written agreement for execution of a project has already been signed between the foreign company and the Indian government or any other private party.

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Project Office Registration

A foreign company can establish a project office in India either on a temporary basis or a permanent project office, provided the foreign company has been awarded a project to be executed by them in India from the government or private sector. Registration of Project Office with RBI & ROC must be completed before it starts operating. There are certain conditions which need to be fulfilled before an application is moved for Project Office Registration.

To register a project office an application is made with the Category 1 AD Bank with a complete set of documents including the copy of the project agreement and an undertaking that the project shall be funded with inward remittance from abroad or through an arrangement with the bilateral or multilateral international finance agency. After approval of the application by the RBI, the project office needs to be registered with the ROC and local police within 30 days of such approval.

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Minimum Requirements of Project Office Registration in India

Formal Contact of the Project

Formal Contact of the Project

The foreign entity must have secured a Project in India, and a formal and legally binding agreement is executed for the same financial statement.

Clearance of Project

Clearance of Project

That the project has been cleared from appropriate and recognised authority or ministry and if applicable from the environment ministry.

Foreign Funding

Foreign Funding

The project must be funded out of the Inward remittances from abroad, or an International Financing Agency must fund the project.

indian-funding.jpg

Indian Funding

In the absence of foreign funding, the Indian Entity awarding the contract shall avail the term loan from a Public Financial Institution or a bank in India

Documents Required Attestation / Appostile

  1. FNC Form duly signed by AR
  2. Proof of Registered Office
  3. Note on Location / Proposed Activity
  4. NOC from the owner of the premises.
  1. Certificate of Incorporation & MOA
  2. Audited Financial of past 5 Years
  3. Board resolution to Open a Branch Office
  4. KYC of the Authorised Signatory
  • Attestation or Legalisation of Documents - Step - 1

    All documents which are required to be filed with RBI of the foreign company like their certificate of incorporation, board resolutions, the moa and articles of the foreign company and the documents of the authorised signatory of the foreign company need to be legalised either through Indian Embassy or to be apostilled as per Hague convention.

  • Filing of Application with RBI through AD Bank - Step - 2

    The application for registration of a Project office of a foreign company is filed in Form - FNC to the reserve bank of India through AD Bank (Authorised Dealer). The AD Bank plays a crucial role as all the communication to the RBI has to be routed through them. We have an excellent relationship with many banks in India, which certainly help in applying to the RBI and Followup

  • Verification of KYC from Banker of Parent Company - Step - 3

    After the FNC Form is filed with the AD Bank, a request for verification of documents is sent to the banker of the foreign company. This process is also known as swift based verification. After receipt of confirmation of the documents from the foreign banker, the application is submitted to the RBI for their approval. The RBI may seek clarification or any additional document which needs to be submitted.

  • Approval of RBI for Project Office Registration in India - Step - 4

    After company incorporation, the Bank A/c has to be opened, wherein the foreign direct investment must reach within 180 days of incorporation of the company with advance intimation to Banker. Post investment the company is under strict liability to file adequate reporting with the RBI reporting of FDI received within 30 Days.

  • Registration of Project office of Foreign Company with the ROC - Step - 4

    Within 30 days of the permission of the RBI the foreign company should apply to the ROC for registration of the foreign company. In case the foreign company have Indian directors then a DIN number of such director is needed, and the digital signature of the authorised signatory is required to e-file statutory forms with the ROC for their approval.

  • PAN Card, Tax Deduction Number & Bank A/c Opening - Step - 4

    Income Tax Department allots a unique 10 Digit alphanumeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions, every taxpayer needs to obtain a Tax Deduction Account Number. These identification numbers are essential to do compliance with the tax rules. The bank account of the branch office can be opened after allotment of Pan Number by the Income Tax Department.

  • Other Registration and Licenses - Step - 4

    After the Project office is operational, there are various other compliance related activities, which depends on the nature of the business and the state-specific laws, which apply to all entities doing commercial activities. For example registration under shops and establishment act, Goods and Services Tax (GST), Professional Tax Act, Provident Funds Act, Employee State Insurance Act (ESIC), etc

Detailed Explainer Video on Project Office Registration

The RBI has issued general permission for the establishment of a Project Office by a foreign corporation in India, provided a written agreement for execution of a project has already been signed between the foreign company and the Indian government or any other private party.

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