Establishment of Project office in India
The Reserve Bank of India has granted general permission to foreign companies to establish Project Offices in India, Provided they have secured a contract from an Indian company to execute a project in India and
(i) The project is funded directly by inward remittance from abroad or
(ii) The project is funded by a bilateral or multilateral International Financing Agency or
(iii) The project has been cleared by an appropriate authority or
(iv) A company or entity in India awarding the contract has been granted Term Loan by a Public Financial Institution or a bank in India for the project.
Setting up of Project Offices by foreign Non-Government Organisations/Non-Profit Organizations/Foreign Government Bodies/Departments, by whatever name called, are under the Government Route. Accordingly, such entities are required to apply to the Reserve Bank for prior permission to establish an office in India, whether Project Office or otherwise
However, If the above criteria are not met or if the parent entity is established in Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran , China, Hong Kong or Macau, Such applications have to be forwarded to the Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai for approval.