Top Business Setup place | Entity Formation

Setup Business in India

Project Office Formation

Foreign companies can set up a project office in India for a limited time bound project to carry out specific activities and obtain necessary registration with Reserve Bank of India as well as Registrar of Companies. Such companies engaged in turnkey construction or installation normally set up a project office for their operations in India.

For opening a project office in India, no approval of Reserve Bank will be required, where the concerned foreign company has secured from an Indian company, a contract to execute a project in India, and—

The project is funded directly by inward remittance from abroad; or
The project is funded by a bilateral or multilateral International Financing Agency; or
The project has been cleared by an appropriate authority; or
Such company or entity in India awarding the contract has been granted term loan by a public financial institution or a bank in India for the project.

Timeline

We at CorpAcumen Global ensure to undertake your comprehensive filing requirements with Reserve Bank of India and Registrar of Companies. We aim to complete the process within 45-60 working days post obtaining necessary details from our clients.

Features

Limitation on the activity

PO established in India cannot undertake multiple activities; it can undertake only such activities, which are necessary for completion of specific project

Registration Requirements

Necessary filings are to be made to the Reserve Bank of India in Form FNC*
After obtaining approval from Reserve Bank of India, necessary documentations are to be filed with the Registrar of Companies in relevant form.

Capital requirement

There is no minimum capital contribution for a LLP, it shall be at the discretion of the Partners
Further capital may be raised by obtaining loans from Bank

Time Limit for opening PO

BO shall be opened within 6 months from the date receiving the approval of Reserve Bank of India
Further extension of 6 months may be granted by AD Category-I bank for reasons beyond the control of the PROI.

Validity of PO

PO remains valid for the entire tenure of the project (till the project is completed or wound up)

Fund Facilities

Authorised Dealer Category-I bank may extend fund and/or non-fund based facilities to BO based on the guidelines issued by the Reserve Bank.

Financial year

Annual Compliances

Filing of Annual Activity Certificate in Form FNC, in case of multiple POs, single AAC can be filed
AAC is to be obtained from chartered accountant, depicting the status of the Project and certifying that the accounts of LO has been audited and the activities are in conformity with those allowed by the Reserve Bank of India
Filing of annual accounts with the Registrar of Companies within 6 months of the end of financial year

Documentation Required

FNC form duly signed by authorised representative
Copy of contract executed between an Indian company and a foreign company for execution of a project in India
Proof of registered office
Note on location/proposed activity
NOC from the owners of the property
Certificate of incorporation & MOA of the foreign entity
Immediately Preceding 3 years audited balance sheet of the applicant foreign company
Board resolution to open a Bank account
KYC of the authorised signatory
List of Directors and Secretary of the Foreign Company, duly attested by any of its Directors
Power of Attorney (POA) to represent the Foreign Company before the RBI and ROC
Declaration of the directors

To be noted:

All the documents to be filed along with FNC form shall be legalised either through Indian Embassy or to be apostiled as per Hague convention.
If the originals are in a language other than in English, the same may be translated into English and notarized as above and cross verified/attested by the Indian Embassy/ Consulate in the home country.

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