Procedure for Opening Project Office by Foreign Companies

Abstract:

Procedure for Opening Project Office by Foreign Companies has been simplified by the government of India. Procedure for Opening Project Office by Foreign Companies in India involves various steps such as, an application has to be send by the foreign company to the Reserve Bank of India and also it has to secure a contract for a project from an Indian firm.

Project Office by Foreign Companies in India:

Project Office that is set up by the Foreign Company in India is a business place which executes a project in the country and also stands for the welfare of the foreign company.

Various Procedures for Opening Project Office by Foreign Companies in India are:

• The foreign company has to apply in the form FNC 1 to the Reserve Bank of India in order to open a project office in the country
• The foreign company has to secure a contract for a project from an Indian firm that will be executed in India
• The project, that the foreign company has secured, has to be approved by the appropriate authority or
• The project, that the foreign company has secured, has to receive funding directly from abroad in the form of inward remittance or
• The project that the foreign company has secured has to receive funding from Agency of International Financing or
• The Indian firm that has given the contract to the foreign company has been granted by a bank or Financial Public Institution a term loan in the country for the project

Procedures for the surplus remittance when the project is completed in the Project Office by Foreign Companies in India:

• A certified copy of the accounts of the project
• Assessment of the income tax order to show that income tax has been paid
• A certificate by a chartered accountant that shows the style of arriving at the surplus of remittance
• A certificate by a chartered accountant that states that funds have been kept in order to pay the tax liabilities in India

Last Updated on 05/07/2011