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Project Office Registration in India

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.

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ECONOMY OVERVIEW

Region:

South Asia

Income category:

Lower middle income

Population:

1,311,050,527

GNI per capita (US$):

1,590

Young working population

 

Project Office Registration in India

A project office of a foreign company is setup for a particular purpose of executing a project awarded to a foreign company in India. There are certain conditions which need to be fulfilled before an application is moved for Project Office Registration. The Registration of Project Office is required to be completed with at at-least three government department. Firstly an approval of setting up a project office need to be obtained from the reserve bank of India which accords its approval on an application filed before it through an AD Banker. Secondly, the project office shall be required to register itself before the register of companies as a foreign company within 30 days of having secured approval from the reserve bank of India. Thirdly it needs to get itself registered in the office of Director General of Police of the concerned state, within which the registered office of the project office shall be situated. RBI has granted general permission to foreign entities for establishing of Project Offices, and Such Project Office of a Foreign Entity cannot carry on any activity other than the activity which is directly related to the project for which it has been established.

Conditions for Project Office

01
The foreign entity has secured a Project in India, and a formal contract has been executed for the same.
02
The project for which office is being setup must be cleared from appropriate and recognised authority.
03
The company or Indian entity awarding the project has been granted a Term Loan by a Bank in India or a Public Financial Institution.
04
Inward remittances from abroad must fund the project and such remittances shall be only through banking channels.
05
A Bilateral or multilateral International Financing Agency must fund the project.
06
The Indian Entity awarding the contract shall avail the term loan from a public financial institution or a bank in India

Procedure for Setting Project Office

01
If the business activity to be undertaken qualifies for 100% FDI then RBI is the approval authority, and in all other cases RBI decides with consultation with relevant ministry of the central government
02
RBI decides the applications on case to case basis and there is no standard which applies in all cases.
03
The net worth and the track record of the foreign entity is also one of the criteria based on
04
The time taken in approving an application under automatic route is 2-4 weeks.
05
RBI issues a Unique Identification Number (UIN). To the project office, thereafter it need to get rgistered with the registrar of companies
06
A project office must obtain Permanent Account Number (PAN) from the Income Tax

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01
We are an experienced team of professionals consisting of corporate lawyers, chartered accountants and company secretaries which specialise in FDI matters and are experts in the subject.
02
We are in this business for over 13 years now and have been securing licenses and approvals for our clients successfully.
03
We advise on the most suitable format of investing in India for your particular case, and its free
04
We apply for approval of RBI or central government as the case may be on your behalf.
05
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PROCEDURE OF PROJECT OFFICE REGISTRATION

STEP 01
ATTESTATION OR LEGALISATION OF DOCUMENTS

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 authorised signatory of the foreign company need to be legalised either through Indian Embassy or to be apostilled as per Hague convention.

 ATTESTATION OR LEGALISATION OF DOCUMENTS
STEP 02
FILING OF APPLICATION WITH AD BANK

The application for registration of Project office of a foreign company is filed in FNC to the reserve bank of India through AD Bank. If the business activity is within 100% FDI policy, then the application is processed by RBI accordingly, and in any other case, it does so with the consultation of concerned ministry.

 FILING OF APPLICATION WITH AD BANK
STEP 03
VERIFICATION OF KYC FROM BANKER

After FNC Form is filed the AD Bank, a swift based verification of documents filed for the foreign company is requested from the banker of the foreign company. After receipt of confirmation, the application for approval of the RBI is sent by the AD Bank. Usually, RBI approves within 2-4 months subject to its assessment being satisfactory.

 VERIFICATION OF KYC FROM BANKER
STEP 04
REGISTRATION WITH THE ROC

After approval of the RBI for the establishment of the Project Office in India, an application for registration of such office of the foreign company is filed within 30 days of such approval. In case there are Indian directors the 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.

 REGISTRATION WITH THE ROC
STEP 05
PAN, TAN & BANK ACCOUNT

Income tax Department allots a unique 10 Digit alpha numeric number as a permanent account number, also known as PAN Number. To comply with TDS provisions every tax payer need to obtain a Tax Deduction Account Number. These identification numbers are essential to operate and comply. The bank account of the Project Office can be opened after PAN allotment.

PAN, TAN & BANK ACCOUNT
STEP 06
FURTHER REGISTRATION AND LICENSES

After the Project office is operational, there is various other compliance related activities are done which depends on the nature of the business and the state government laws which apply to businesses in that particular state. 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.

FURTHER REGISTRATION AND LICENSES