RBI has liberalized and simplified the the
procedures for institution of Project Offices in Asian
countries. General permission has been granted to foreign entities
for fitting Project Office(s) in Asian country. This permission is
subject to the adherence to the provisions of Regulation four, and
Regulation five of the FEMA Regulation No. twenty two that bury
alia includes the subsequent conditions to be glad.
It's secured from associate
Indian company a contract to execute a project in India; and
The project is funded by inward
remittal from abroad; or
The project is funded by a bilateral
or tripartite International Finance Agency; or
The project has been cleared by
associate applicable authority; or
An organization or entity in India or
Asian countries grant the contract has been granted Term Loan by a
Public institution or a bank in India for the project.
In case the on top of criteria don't seem to be met, the
foreign entity must approach the Federal Reserve Bank for
foreign company establishing a Project workplace in India or
Asian countries is needed to furnish a report through the involved
AD class – I bank branch to the involved Regional workplace
of Federal Reserve Bank of India below whose jurisdiction the
Project workplace is ready up at intervals sixty days of
multinational of the new Project workplace with the subsequent
Name and address of the Foreign
Reference variety and date of letter
grant the contract
Particulars of the authority grant
the comes / contract,
The full quantity of contract,
Address / e-mail address, / phone
number / fax number of the Project workplace,
Tenure of Project workplace,
Temporary details of the Project
Associate endeavor to the result that
the Project workplace is eligible to avail of the final Permission
below Regulation five AD branch with whom the account has been
opened and also the foreign currency during which the account is
OPENING OF FOREIGN CURRENCY ACCOUNT
Project Offices will through their AD class – I banks open
non-interest bearing Foreign Currency Account in Asian country
subject to the following:
The Project workplace has been
established in Asian country, with the final / specific permission
of Federal Reserve Bank, having the requisite approval from the
involved Project enabling Authority.
The contract below that the project
has been sanctioned, specifically provides for payment in foreign
The permissible debits and credits
within the account shall be as under:
Payment of project connected expenditure.
* Foreign currency receipts from the Project enabling Authority,
* Remittances from parent / cluster company abroad or bilateral /
tripartite international funding agency.
The responsibility of guaranteeing
that solely the approved debits and credits area unit allowed
within the Foreign Currency Account shall rest exclusively with the
involved branch of the AD.
The Foreign Currency account is also
closed at the completion of the Project.
Foreign entities fitting Project workplace in Asian country
ought to submit a report back to the Director General of Police
(DGP) of the state involved wherever the project workplace has been
established at intervals 5 operating days of the PO changing into
practical. just in case of quite one workplace, the report ought to
be stocked to every DGP of the involved state wherever the
workplace has been established. The copy of the report in ought to
even be filed with AD Bank by the fresh established Project
The Project workplace shall conjointly submit associate annual
activity certificate to the AD branch.
COMPLIANCES WITH THE REGISTRAR OF firms AND DIRECTOR GENERAL OF
Once Project workplace has been established, the PO is
additionally needed to be registered with the Registrar of firms
("ROC") in Asian country below the provisions of the
businesses Act, 2013, at intervals a amount of thirty days from
such date of multinational of the LO. The registration application
is to be filed in e-form FC-1. constant is to be filed on-line with
the mythical monster along side the requisite documents.
List of Documents needed for registration
The certificate of incorporation/
registration. Latest Audited record of the human Foreign
Board Resolution of the Foreign
Company on the corporate Letter head
List of administrators and Secretary
of the Foreign Company, punctually echt by any of its
Power of professional (POA) authorize
to represent the Foreign Company before the run and mythical
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