Registration of Project Office

✅ Step 1: Eligibility Criteria

• The foreign entity must have secured a contract to execute a project in India.
• The project should be funded by any of the following:
  • Inward remittance from abroad
  • Bilateral or multilateral international financing agency
  • Term loans from Public Financial Institutions or banks in India
  • Project approval from appropriate authority

✅ Step 2: Application Submission

• Submit Form FNC to a designated Authorised Dealer (AD) Category-I Bank where the PO intends to maintain banking relations.

✅ Step 3: Document Preparation

Attach the following documents (notarized/apostilled where applicable):

• Certificate of Incorporation or Registration
• Memorandum and Articles of Association (MoA & AoA)
• Power of Attorney in favor of the signatory
• Banker’s report from the parent company’s banker
• Resolution/Authorization to establish a PO
• Details of the project awarded (e.g., contract copy, project value, funding source)

✅ Step 4: Approval Process

• The AD Bank processes the application and grants approval under delegated powers.
• RBI approval is required in special cases:
  • Entities from Pakistan
  • Proposals in defense, telecom, private security, nuclear energy, or media sectors

✅ Step 5: Bank Account Opening

• Open a Rupee-denominated bank account for local operations.
• If required, also open a foreign currency account with the same AD Bank, specifically for the project.

✅ Step 6: Registration with Local Authorities

• In certain cases (e.g., if the parent entity is from Bangladesh, Pakistan, etc.), register with the State Police Authorities.

✅ Step 7: Post-Approval Compliance

• Inform RBI and the AD Bank about the commencement of operations within 6 months from the date of approval.

✅ Step 8: Operational & Annual Compliance

• Operate strictly within the scope of the approved project.
• Submit an Annual Activity Certificate (AAC) to the AD Bank, certified by a Chartered Accountant.
• Notify the AD Bank in case of:
  • Any change in the name of the PO
  • Changes in top management or key contact details

✅ Step 9: Profit Remittance (If Any)

• Apply to the AD Bank for remittance of surplus funds/profits.
• Submit:
  • CA Certificate confirming:
    • All liabilities in India have been adequately met or provided for (e.g., taxes, employee dues)
  • Undertaking from the Project Office stating:
    • The remittance will not affect project completion
    • Any shortfall in India will be funded by inward remittance

🔚 Closure of Project Office

✅ Step 10: Closure & Winding-Up Remittance

Submit the closure request to the AD Bank with:

• Copy of original approval letter for establishing the PO
• Auditor’s Certificate certifying:
  • Manner of arriving at the remittable amount
  • Disposal of assets and confirmation that all Indian liabilities are settled
  • No un-repatriated income from Indian operations
• Declaration from the parent company:
  • No pending legal proceedings in India
  • No legal impediment to the remittance of closure proceeds
• Copies of filed Annual Activity Certificates (AACs)