What is the process for setting up a project office in India?

If a project office is approved, it should notify the relevant regional Director General of Police within five days of the office’s establishment. Within two months of the project office’s establishment, the overseas company must also submit a report to the relevant regional office of the Reserve Bank of India (RBI) through the authorized dealer branch bank (AD) that will be used by the foreign company. This report should include:

• Name and address of the overseas company;
• Reference number and date of project contract;
• Particulars of the authority awarding the project contract;
• Total amount of the contract;
• Brief details of both the project undertaken and authorized dealer branch bank; and
• Project details, including project office tenure and contact information.

Each year, the project office will be required to submit a Project Status report compiled by a chartered accountant to the company’s AD branch. This report ensures the activities undertaken by the project office, conforms to the activities permitted by the RBI.

Project offices may open a non-interest bearing foreign currency banking account with an authorized dealer branch in India for project expenses and credits. The office may maintain both a foreign currency account and a rupee account while operating in India. Project offices are allowed occasional remittance to their parent companies and must provide a chartered accountant certificate verifying the offices can still meet their liabilities. Following project completion, the project office may repatriate any capital surplus once all tax liabilities have been paid, a final audit of the project accounts has been completed, and a document verifying the remittable surplus provided. A project office is winded up once the designated is concluded.