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PROJECT OFFICE FOR EXECUTION OF CONTRACTS
Foreign companies can establish Project Offices in
India specifically for the purpose of execution of
specific projects. A Project Office is similar to a
branch office opened for the limited purpose of
executing a particular contract.
The Branch Office in India is allowed to
carry on only the following activities:
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As Project Office's are opened for
undertaking a specific activity they cannot
perform any other function or undertake any
other activity. Generally, companies engaged
in turnkey projects or installation
projects, set up Project Offices. |
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All expenses of Project Offices must be met
through inward foreign currency remittances
if the rupee component of the contract, if
any, is not sufficient to meet the said
expenses. |
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RBI approval is required to open a Project
office.
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