Starting a Project Office in India! How to start a Project Office in India?

Project offices are that type of business entities which are incorporated by the foreign companies for as like temporary project or site offices in India. Now a days The Indian Government grants general permission for foreign companies to incorporate project office entity in India.

 

Advantages:

  • Having a full transparency into all aspects of the projects
  • Having better control over projects
  • Being better equipped to make the optimal decisions related to projects
  • Minimizing uncertainty and associated risks
  • Increasing support and buy in from all stakeholders

 

Procedure for setting up Project Office?

Foreign companies are granted projects in India by Indian entities. General Permission has been granted by Reserve Bank of India vide Notification No. FEMA 95/2003-RB dated July 2, 2003 to foreign companies to open Project Office/s in India provided they have 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
  • a 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.
  • However, if the above criteria are not met, or if the parent entity is established in Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China, such applications have to be forwarded to Central Office of the Foreign Exchange Department of the Reserve Bank at Mumbai for approval.

 

To start a Project Office in India just fill this form:

What are the popular business entities in India for Foreign Companies?

If you are running a foreign entity and thinking to start a new business in India then first you have to choose that which legal entity is best for your business needs and goal. Now days these are the most popular Business entities:

  •                Liaison Office/Representative Office
  •                Project Office
  •                Branch Office
  •                Joint venture companies

Liaison Office/Representative Office

‘Liaison Office’ means a place of business to act as a channel of communication between the Principal place of business or Head Office by whatever name called and entities in India but which does not undertake any commercial /trading/ industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.

To Know more about Liaison Office CLICK HERE:

Project Office:

Project offices are that type of business entities which are incorporated by the foreign companies for as like temporary project or site offices in India. Now a days The Indian Government grants general permission for foreign companies to incorporate project office entity in India.

To Know more about Project Office CLICK HERE:

Branch Office:

Branch office is that type of business entity which helps to expands business in the different parts of the country and in many different countries too. It refers to an establishment which carries on substantially the same business and activity as is carried out by its Head Office. it establish with the approval of RBI

To Know more about Branch Office CLICK HERE:

Joint Venture Company:

As it seems from its name a joint venture is a new enterprise owned by two or more participants to share markets / intellectual property and its knowledge and its profit too.

It is essentially a medium to long-term contract which is specific and flexible. Though, the joint venture a newly created business enterprise can be represented and its participants can continue to exist as separate firms. It can also be organized as a partnership firm, a corporation or any other form of business organisation which the participating firms choose to select.

To Know more about Joint Venture Company CLICK HERE: