Reserve Bank of India has granted general permission to foreign companies to establish Project Offices in India subject to fulfillment of certain conditions categorized under eligibility criteria below.
However, as per the provisions of A.P. (DIR Series) Circular No. 44 dated May 17, 2005 an intimation regarding establishment of project office in India shall be sent to Reserve Bank of India through an authorized AD Category-I Bank.
Foreign Exchange Management Act, 1999 read with Foreign Exchange Management (Establishment in India of branch or office or other place of business) Regulations, 2000.
There is no particular time limit as to the duration of the project office. The same shall be subject to the contract between the foreign company and Indian company.
Again the activities of project office would depend upon the nature of the contract awarded by the Indian company to the foreign company.
Reserve Bank of India has granted general permission for closure of Project office and for remittance of surplus money on completion/winding up of the project subject to fulfillment of certain conditions.
Identification of an AD category-I bank, with whom the Applicant Foreign Company intend to pursue banking relation in India.
Preparation and submission of intimation in the prescribed format to Reserve Bank of India through AD Category-I Bank regarding establishment of project office in India.
Filing of documents with the Registrar of Companies for obtaining Certificate of Commencement of business in India.