Project Office Registration in India by any foreign entity can be established if an Indian company grants or awards the contract to a foreign entity to carry out the project in India. A foreign entity is required to file prescribed form with the regional office of the Reserve Bank of India for its establishment. The project office is regulated in terms of Section 6(6) of Foreign Exchange Management Act, 1999 read with Notification No. FEMA 22/2000-RB dated May 3, 2000. Any profit that a Project Office earns can be repatriated post completion of the project after paying the taxes and meeting other important conditions in India.
Project Offices in India have also the benefit to open “non-interest” bearing Foreign Currency Account as Authorized Dealer (AD) Category - I Banks provide a great assistance in the same. Apart from this, an AD Category – I bank can also allow intermittent remittances by Project Offices pending winding up / completion of the project under some conditions.
Foreign entities that are setting up Project Offices in India are required to submit a report comprising information within five working days of the Project Office becoming functional. The report needs to be submitted as per the format provided in Annex 3 to the Director General of Police of the state in which PO has established its office.
In case, the foreign entity owns more than one office in India, the report containing all the information needs to be submitted to the respective Director General of Police of each state where the office has been established in India. AP(DIR) No.35 dated September 25, 2012 should be taken into account while submitting the report.