Registration and compliance of Project Office of Foreign Company in India
As the name suggests, Project office can be registered in India by any Foreign Entity for a limited period of time with the object of executing any turnkey construction or installation. Normally those foreign companies which entered to execute any project for construction or any other awarded contract in India use to register Project Office in India.
In order to register a project Office in India, there is requirement of approval from RBI
(Reserve Bank of India). In order to obtain the approval from RBI, the foreign entity needs to submit a formal and legally binding agreement to demonstrate the awarded contract for execution of project. The proposed project should obtain the clearance certificate from environment ministry and other appropriate and recognized authority or ministry. The project must be funded from Inward remittance from abroad or term loan from Public Financial institution (PFI) or a bank in India.
Based upon submitted documents, RBI will grant approval to open Project Office in India. Post approval from RBI, there is needed to apply ROC (Registrar of Companies) to obtain a certificate of establishment of a place of business in India. We at ReturnFilings.Com can arrange and provide a place of business in India at very nominal charges. Further after obtaining certificate of establishment, there is requirement of PAN (Permanent Account Number) and other regulatory registration will depend upon the size and nature of Liaison Office in India, such as TAN (Tax deduction Account Number), GST Registration, IEC (Import Export Code) if sampling need to be import or export.
After incorporation of Project Office in India, the entity must adhere to tax laws and regulations, RBI regulations, Companies Act provisions and any other enactment as per the nature of business of the entity.
Project office in India are allowed to open two foreign currency accounts in India, one account must have USD denomination and another foreign currency account bearing home currency denomination, both account must be opened with same AD category -1 banks. All Foreign currency account must be settled and closed after completion of project.
Project Office are allowed to remit funds outside India after netting of payment of taxes in India. Further, a Project Office in India must ensure that any remittance outside India will not affect the project completion and if there would be any shortfall of funds for completion of project, same must be fulfill from inward remittance from abroad.
The project office in India must ensure that any remittance outside India will not affect the completion of the project and any shortfall of funds must be met by inward remittance from abroad. With the ever changing of Law and regulatory requirements relating to Project office in India, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your Project Office registration in India and thereafter will provide you detailed analysis featuring the industry scenario in India, Various incentives / subsidy schemes available according to industry type. Detail analysis for Set-up of Project Office in India in order to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com
will take care of all your compliance need.