Overview
A Project Office in India is a temporary establishment set up by a foreign company to execute a specific project in India. This route is commonly used by foreign companies that have secured a contract from an Indian company or government authority and need a physical presence in India only for the duration of the project. Project Offices are governed by the Foreign Exchange Management Act and regulations issued by the Reserve Bank of India.
Project Office registration is permitted when the foreign company has been awarded a contract by an Indian entity and the project is funded directly by inward remittance from abroad or through bilateral or multilateral international financing agencies. In certain cases, approval from the Reserve Bank of India is required, while in others, registration can be done under the general permission route, depending on the nature of the project and funding structure.
A Project Office is allowed to carry out only activities related to the execution of the specific project. It cannot undertake any other commercial activities or generate income outside the scope of the approved project. The office can open a bank account in India, hire employees and meet operational expenses strictly in line with the project requirements. Once the project is completed, the Project Office must be closed and funds repatriated after compliance.
BizGlobal Professional Services assists foreign companies in setting up Project Offices in India in a smooth and compliant manner. From assessing eligibility and RBI approval requirements to filing applications, liaison with banks and post registration compliance, BizGlobal ensures that the entire process is handled professionally and efficiently.
