A
Project Office (PO) means a place of business established to represent the
interests of a foreign company executing a project in India. Such offices are
prohibited from undertaking or carrying on any activity other than the activity
relating to the execution of the project for which such office is established.
Eligibility:
Reserve Bank has granted general permission to
foreign companies to establish POs in India, provided they have secured a
contract from an Indian company 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 PFI or a Bank in
India for the project.
However, if the above criteria’s are not met, the
foreign entity has to approach the RBI, Central Office, for special approval.
Setting up of PO by foreign NGO / NPO / Foreign
Government Bodies / Departments are under the Government Route. Such entities
are required to apply to RBI for prior permission to establish an office in
India.
Validity:
Generally, the approval is valid till completion of the project.
Without
prior permission of the Reserve Bank, no person being a citizen of/ registered
in Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or
Macau can establish in India, a PO in India.
Kindy refer FAQ for detailed comparison of Liaison Office,
Branch Office and Project Office
- Update 04/2024