Setting Up Business In India
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Our Team Handles Income Tax, Goods & Services Tax, Corporate Law, RBI & FEMA Matters.
Our Firm Sunil K. Khanna & Co. was founded in 2nd February, 1976 by our founder Late CA. Sunil Kumar Khanna. He founded the firm with a vision to build an institution of learning for the team members associated with the firm and to render a one stop solution to his clients. We are one of the leading Chartered Accountant Firms In India offering services in the field of Income Tax, Goods & Services Tax, Corporate Law, Regulatory Compliance and Audit & Assurance. The immense experience of the firm helps in rendering a wide variety of services to Indian and Multi National companies.
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What We Do
Project Office in India
If you are looking for opening a representative office in India for representing your organization in India or for execution of a
Infrastructure Project and liaison purposes then Foreign Project Office is the best suited for your organization. The main benefit of a Project office is that it is not liable to any taxes in India as it is not undertaking any business activity in India. Its scope of work is limited to execution of project and liaison for parent company. It is however required to deduct tax at source wherever applicable.
A Project Office is in the nature of a representative office set up primarily to manage and execute the Construction of Infrastructure Project. A Project Office is not permitted to undertake any commercial/ trading/ industrial activity, directly or indirectly, and is required to maintain itself out of inward remittances received from the parent company through normal banking channels. Its role is limited to collecting information about project and achieving the coordination for timely completion of the project.
Activities Permitted for Foreign Project Office
It is subject to various restrictions and can only conduct activities permitted by the Reserve Bank of India at the time of granting permission for opening Project office. It can only undertake the following activities in India.
- Eligibility: Only foreign companies that have secured a contract from an Indian company or a government body to execute a specific project in India are eligible to set up a project office.
- The approval by the RBI is granted for the duration of the project.
- The project office can only undertake activities related to the execution of the specific project for which it has been set up.
- The project office must open a bank account with an authorized dealer bank in India.
- The project office is liable to pay taxes in India on the income earned from the project. The foreign company may also be subject to tax in its home country on the income earned from the project.
- The project office must be closed after the completion of the project or upon the premature termination of the contract.
- It is important to note that the project office cannot undertake any other activities in India other than those related to the specific project for which it has been set up. The project office must also comply with all the applicable laws and regulations in India, including those related to taxation and employment.
It cannot undertake any activities other than the activities mentioned above subject to the permission of Reserve Bank of India.
Foreign Project Office Setup Procedure
A Foreign Project Office is a special business setup mode which can be setup only with prior permission of Reserve Bank of India (RBI). The applications from such entities will be considered by the Reserve Bank under two routes:
(a) Reserve Bank Route – Where principal business of the foreign entity falls under sectors where 100 per cent Foreign Direct Investment (FDI) is permissible under the automatic route.
(b) Government Route – Where principal business of the foreign entity falls under the sectors where 100 per cent FDI is not permissible under the automatic route. Applications from entities falling under this category and those from Non – Government Organisations / Non – Profit Organisations / Government Bodies / Departments are considered by the Reserve Bank in consultation with the Ministry of Finance, Government of India.
An application for registration of foreign liaison office is required to be made through a designated AD Category – 1 Bank in Form FNC-1 along with the following documents:
- Form FNC-1 in Triplicate
- Proposed business activity in India;
- Name of Company with Certificate of Incorporation in home country (Attested from Home country i.e. notary + Apostile);
- Latest audited balance sheet (Attested from Home country i.e. notary + Apostile);
- Brief description of activities of Company;
- Value of Import/Export to India by the Company during last three years;
- Detail of existing arrangements in India, if any;
- Name and address of banker of the Company in the home country;
- Certified Copies of Memorandum and Articles of Association/ By Laws/ Regulations of the Company (Attested from Home country i.e. notary + Apostile and to be in English);
- List of directors and secretary of the Company i.e. name, address, designation, date of appointment etc;
- Registered office address of the Company including telephone no. and email id;
- The name and address or the names and addresses of one or more persons resident in India authorized to accept on behalf of the company service of process and any notices.
- Full address of the office of the company in India which is deemed to be its principal place of business in India including telephone no. and email id;
- Particulars of opening and closing of a place of business in India on earlier occasion or occasions;
- Detail of other places of business in India, if any;
- List of shareholders containing name of shareholder, address, number of shares and value of shares;
- DSC of authorized representative of foreign company;
- Certified copy of PAN of authorized representative of foreign company or DIN if available;
- Particulars of subsidiary, holding or associate companies of the foreign company in India
RBI may ask for any further documents as may be necessary in addition to these documents.
We at Sunil K.Khanna & Co. are assisting Foreign companies and clients to open Project Offices in India. The turn around time period for obtaining the approval ranges from 45-60 Days from the date of receipt of documents.
We have obtained the permissions on behalf of clients from U.S., Europe, Africa, China, South East Asia and Australia. We on behalf of our clients have obtained permissions for opening project offices of construction and engineering companies, marketing offices of MNC companies and Representative offices of Non Profit Organisations.
We charge a consolidated fee for advisory, preparation and representation of an application which is quoted after careful assessment of documentation.
Please feel free to revert in case of any clarification on the subject or the procedure involved therein.
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Sometimes you may find yourself in difficult situations and not be able to defuse
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Sometimes you may find yourself in difficult situations and not be able
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