Project Office

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Description

A. Eligibility

Reserve Bank has granted general permission to foreign companies to establish Project Office in India, provided they have secured a contract from an Indian company to execute a project in India, and

  1. the project is funded directly by inward remittance from abroad; or
  2. the project is funded by a bilateral or multilateral International Financing Agency; or
  3. the project has been cleared by an appropriate authority; or
  4. 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.

However, if the above criteria are not met, the foreign entity has to approach the Reserve Bank of India, Central Office, for approval.

B. Tax: 40% + tax 

C. Exit: Prior approval of AD bank and ROC authorities is required.

List of Standard Documents required :

  1. English version of the certificate of incorporation / Registration or Memorandum & Articles of Association attested by Indian Embassy/ Notary Public in the country of Registration.
  2. Latest Audited Balance Sheet of the applicant entity.
  3. Board resolution by the foreign company stating its intention to set up a project office in India. (English) (On the Company letterhead).
  4. Documentary evidence that the Project is funded by bilateral or multilateral International Financing Agencies OR the project has been cleared by the concerned regulatory authority OR the Indian company has been granted term loan for the concerned Project by a Financing Institution or a Bank in India.
  5. Bankers report from the Company’s banker showing the number of years the company has had banking relations with the bank.
  6. Letter of authority from the parent company in favour of the local representative.
  7. Details of activities / services proposed to be undertaken / rendered by the proposed project office in India.
  8. Residence proof and passport copies of the authorized personnel.
  9. A Resolution/covering letter to open the bank account in India.

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