Best Project Office Registration Service Providers

A foreign company is permitted to establish a project office in India either on a permanent basis or on a temporary basis. This can be done only if the foreign company has secured a contract from an Indian company to execute a project in India.

But before a project office begins its operations in India, it is mandatory for a project office to get registration done with Reserve Bank of India (RBI) and Registrar of Companies (ROC).

FEMA DEFINES PROJECT OFFICE AS

‘Project Office’ means a place of business to represent the interests of the foreign company executing a project in India but excludes a Liaison Office.

FAQ's

What is the application process for a Project Office?

Non-resident companies have a general permission to set up a Project Office in India on securing a contract from an Indian company. Otherwise, applications for setting up a Project Office in a sector where 100% FDI is allowed is routed through an Authorized Dealer Category I Bank. The applicant has to inform the bank about establishing an office within 6 months of receiving the approval letter.

Are there any other compliances?

PAN Number, TAN Number, Service Tax Code, and other specified regulations must be met. TDS Return, Service Tax Return, IT Return, Employees’ State Insurance, and Provident Fund particulars must also be documented and submitted. 

What type of Project Office can be established?

A Branch Office or Liaison Office or a Wholly Owned Subsidiary can be opened through a Joint Venture or a Limited Liability Partnership agreement.

Can a Project Office pursue other business activities?

No. The company is permitted to carry out activities only related to the specific business project.

Can fund-based and non-fund-based facilities be extended?

Facilities can be extended by the AD Category I Bank based on the policy approval from the Board and must comply with existing rules and regulations set by the Department of Banking Regulation of RBI. 

What are the debit and credit facilities?

Permissible credits in the concerned bank account are foreign currency receipts from the Project Sanctioning Authority and any transfers from the foreign company or an international financing agency. Permissible debits will be expenditures on the sanctioned project.

Is there a stipulated time limit for a Project Office?

The stipulated time limit is the total tenure of the concerned project.

What are the rules for submitting an Annual Activity Certificate?

AAC must be submitted to the Authorized Category I Bank at the end of 31st March every year.

What is the process of submitting an Account Statement?

If the foreign country doesn’t require an audited balance sheet of the past 5 years to be submitted, an Account Statement from a Certified Public Accountant or a Registered Accounting Authority must be submitted.

What is the Registration process rule?

The foreign company must file Form FC 1 with the Registrar of Companies. The submission period is 30 days from the establishment of the business office in India.


Contact Us