In cases where the person resident outside India is not able to open the office within the stipulated time frame due to reasons beyond their control, the Authorised Dealer Category-I bank may consider granting extension of time for setting up the office by a further period of six months. In case no office is opened by the person resident outside India within six months from the date of approval letter, the approval for establishing the office in India shall be cancelled.
Copy of approval letter for ‘persons’ from these countries shall be marked by the AD Category-I bank to the Ministry of Home Affairs, Internal Security Division-I, Government of India, New Delhi.Ī person resident outside India desiring to establish a project office in India shall submit an application in Form FNC (Annex C) to an Authorised Dealer Category-I bank who may, subject to the provisions of Regulation 5, grant approval as per the directions and/or guidelines issued by the Reserve Bank in this regard. In this case, Authorized Dealer Category-I banks are empowered to grant approval.Ī point to pay attention:- A person from Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau opening a project office in India shall have to register with the concerned State Police Authorities. RBI has given general permission for opening of Project Office in India if the above conditions are satisfied. a company or entity in India awarding the contract has been granted term loan by a Public Financial Institution or a bank in India for the Project.the project has been cleared by an appropriate authority or.the project is funded by a bilateral or multilateral International Financing Agency or.the project is funded directly by inward remittance from abroad or.An insurance company resident outside India shall not require any approval under these Regulations for establishing any office in India if such company has obtained approval from the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999.Ī foreign company may open project office/s in India provided it has secured from an Indian company, a contract to execute a project in India, and.A banking company resident outside India shall not require any approval under these Regulations for establishing any office in India if such company has obtained necessary approval under the provisions of the Banking Regulation Act, 1949.No person resident outside India shall without prior approval of the Reserve Bank open in India a branch office or a liaison office or a project office or any other place of business by whatever name called except as laid down in these Regulations. RBI Compliances for project offices regarding establishment eligibility requirements & reporting:-Īccording to the Foreign Exchange Management (Establishment in India of a Branch Office or a Liaison Office or a Project Office or any Other Place of Business) Regulations, 2016, notified by the Reserve Bank vide Notification No FEMA 22(R)/RB-2016 dated March 31, 2016, as amended from time to time:. The only difference between the two is that the project office can undertake commercial activities that too only related to the specific project for which it has been established while the liaison office cannot undertake any commercial activities ,its only there to represent the foreign entity.įoreign Companies who have been awarded a contract to execute a project in India, select the mode of execution of the project, through project offices duly registered with the Reserve Bank of India (RBI) and the Registrar of Project office excludes a “Liaison office”. Such offices are prohibited from undertaking or carrying on any activity other than the activity relating to the execution of the project for which such office is established. , are here to provide all the details you need to know regarding the Registrar of companies (ROC) & Reserve Bank of India (RBI) compliances in order to establish a project office in India.įirstly, let us understand what is a “project office”:-Ī Project Office (PO) means a place of business established to represent the interests of a foreign company executing a project in India. Matters related to Enforcement Directorate under PMLA & FEMA.
Matters related to Black Money and Imposition of Tax Act 2015.Matters related with Benami Property Transactions.Import-Export, Technology Park & Special Economic Zone.Investment in India by Foreign Nationals & NRIs.
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