A Project Office is a temporary setup by a foreign company in India to execute specific projects. It acts as an extension of the foreign company and is established for the sole purpose of executing a specific project.

A Project Office is strictly limited to activities related to the specific project for which it is established. It handles the execution of that project, compliance with project-specific legal requirements, and financial management related to the project.

The Reserve Bank of India (RBI) regulates the establishment of Project Offices under the provisions of the Foreign Exchange Management Act (FEMA) 1999.

The application to open a Project Office is submitted through an Authorized Dealer (AD) bank to the RBI. The application must detail the project to be executed, including its duration and funding sources.

The company needs to submit a detailed application along with the contract or agreement for the project approved by an Indian company or government entity, proof of funding, and the parent company's financials.

The approval is generally granted for the duration of the project. The office must be closed upon the project's completion unless extended or renewed with RBI approval.

No, a Project Office cannot undertake any commercial activity other than those directly related to the execution of the specific project.

A Project Office must file annual activity reports with the RBI, audited financial statements, and comply with tax filings as per Indian regulations.

Yes, upon the completion of the project, a Project Office can remit surplus funds back to the parent company after obtaining clearance from Indian tax authorities and the RBI.

If the project duration extends beyond the initially approved period, the Project Office must apply for an extension through the RBI with justified reasons and updated project details.