Establishing Project Offices (POs) in a country is useful as they permit foreign investment and participation in a specific project, usually linked to a high-value contract that may take two or three years to complete. They negate the need for the foreign participant to establish a more permanent presence, as the PO is linked to the contract completion terms, yet provide flexibility of hiring labor, funding the project and remitting profits overseas.
Foreign investors planning to execute specific projects in India can set up a temporary project site office in India to handle the contract. The Reserve Bank of India (RBI) provides approval and grants general permission for foreign entities to establish project offices, subject to certain conditions.
In contrast, Project Offices in China have fallen out of favor in recent year, in fact, when discussing the matter with authorities in Beijing, it appeared that no Project Office licenses had been granted for a number of years, and new applications would probably no longer be approved.
Read the rest of this article to find out more about the current state of Project Office agreements in China, and the process for setting up Project Offices in India.
For more information about establishing a Project Office in India please contact us about company formation in India.
