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#Project office rbi registration#

That it is specified in the contract governing the project for payment in foreign currency.

That the project office has been established as per applicable Indian regulations.

NON-INTEREST-BEARING foreign currency accounts can be opened with Authorized Dealers Category-I bank subject to the following conditions: If desired PO relates to defense sector, if contract has been awarded by/entered into with the Ministry of Defense or Service Headquarters or Defense Public Sector Undertakings, no separate reference or approval of the Government of India is required. If the principal business is in regard of telecom/defense/private security/information and broadcasting sector. Otherwise, Authorized Dealer Category-1 bank’s approval is sufficient enough. However, if any parent company is incorporated in Pakistan, Bangladesh, Sri Lanka, Iran, Afghanistan, Macau, China and Hong-Kong are desired to establish a project office in Andaman and Nicobar Islands, North Eastern States and Jammu & Kashmir, approval of RBI must be with the consultation with the Government of India.

The appropriate authority has cleared the project,Ī bank in India or a Public Financial Institution has granted a term loan to the company or entity in India awarding the contract.įor the purpose of project office in India, a company must satisfy the above-mentioned conditions to the RBI.

The project is funded multilateral or bilateral International Financing Agency,.The project is funded by inward remittance from abroad,.

#Project office rbi registration#

Registration of a project office in India by a foreign company is said to be done when: Secure contact with an Indian company to start a project and compliance with ROC, as prescribed under the Companies Act, 2013 and RBI Guidelines. Now, the establishment of a project office can be achieved with ease as doing business in India can be done with ease and even the non-residents can set up a place without any hassle. In lieu of this decision, the government has delegated some powers of the RBI to AD Bank in order to make the process of establishment of project office time efficient and transparent.

India is one of the fastest growing economies, have made efforts to make India one of the better places for the purpose of doing business. It is essential that the company establish a project office here in India must do it with the purpose of executing a specific project. A company having the object of presence for a limited period of time is an ideal method to set up a business presence in India. The directions contained in this circular have been issued under Section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/ approvals, if any, required under any other law.Overview Eligibility Documents Required Procedure FAQ Introduction to Project Office RegistrationĪ project office is a place of business for foreign companies to represent its interest in executing a project in India. 10 dated is being updated simultaneously to reflect the changes.ĥ. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers.Ĥ. All other provisions of the BO/ LO/ PO policy shall remain unchanged. Further, they shall bring to the notice of the Reserve Bank in case any such violation of the provisions of the Advocates Act comes to their notice.ģ. Accordingly, AD Category – I banks are directed not to grant any approval to any branch office, project office, liaison office or other place of business in India under FEMA for the purpose of practicing legal profession in India. As such, foreign law firms/ companies or foreign lawyers or any other person resident outside India, are not permitted to establish any branch office, project office, liaison office or other place of business in India for the purpose of practicing legal profession. The Hon’ble Supreme Court has while disposing of the case, held that advocates enrolled under the Advocates Act, 1961 alone are entitled to practice law in India and that foreign law firms/ companies or foreign lawyers cannot practice profession of law in India. 23 dated, on the above issue advising that no fresh permissions/ renewal of permission shall be granted by the Reserve Bank/ AD Category-I banks to any foreign law firm for opening of Liaison Office in India, till the policy is reviewed based on, among others, final disposal of the matter by the Hon’ble Supreme Court.Ģ. Attention of the Authorised Dealer (AD – Category I) banks is invited to AP (DIR Series) Circular No.