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 approval.
The 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 details.
- Name and address of the Foreign Company,
- 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 undertaken,
- 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 opened
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 currency.
- 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, and
* 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 workplace.
The Project workplace shall conjointly submit associate annual activity certificate to the AD branch.
COMPLIANCES WITH THE REGISTRAR OF firms AND DIRECTOR GENERAL OF POLICE
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 Company.
- 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 administrators.
- Power of professional (POA) authorize to represent the Foreign Company before the run and mythical monster.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.