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Procedures And Documents Required For Setting Up Project Office In India

If you are planning to set up your project office in India then you must read this article.

You will be glad to know that the Reserve Bank of India has simplified and has liberalized the procedures for Setting up Project Office in India. Now permission is granted in general to the foreign entities to set up their project offices in India. This permission comes in accordance to the provisions in Regulation 4 and 5 of the FEMA Regulation 22. However the inter-alia includes a few specific conditions for Starting operations in India such as it must secure a contract to execute a project in India from any Indian company and the fund must be remitted inward from abroad, or the project must be funded by a bilateral or multilateral International Finance Agency.

Criteria to meet

There are a few other criteria set by the RBI for Setting up Project Office in India. The project must be cleared and approved by an appropriate authority and the company in India giving the contract has been allowed a term loan by any bank in India or a Public Financial Institution for the project. If the foreign company cannot meet these criteria then it has to approach the RBI for approval for setting up business in India. The foreign company must furnish a report through the AD Category-I bank branch to the regional office of Reserve Bank of India where the project office is to be set up.

Elements to include

The report must be carefully drafted within 60 days after Opening a Branch Office in India. The report must include all the required details that includes name and address of the foreign company, reference number and date of letter awarding the contract, details of the authority awarding the project, the total amount, address of the project office including e-mail address, phone and fax number, tenure of project, brief details of the project, and the AD branch of the bank and currency in which the account is opened. Apart from that, an undertaking is required for avail the general permission for company set up India under Regulation 5.

Opening the bank account

For setting up company in India, the foreign entity must open a foreign currency account following the specific rules as well. It must be opened through the AD Category-I banks. It must be subject to the general and specific permission of RBI and must have the required approval from the relevant sanctioning authority for company setup in India. Apart from that, there are limits to the debits and credits in the account. Debits will include the expenditure of the project and credits will include the foreign currency receipts. These receipts can be from the project sanctioning authority or from the parent company abroad or any bilateral or multilateral international financing agency.

List of Documents required

Specific documents are required for Opening a Company in India and for its registration. The list includes the certificate of incorporation, latest audited balance sheet of the foreign company, board resolution on company letter head, list of directors and secretary, power of attorney authorizing the foreign company to represent before the ROC and RBI, and declaration of the directors wanting to set up a project and liaison office in India. All these documents must be in English language and if not, these must be annexed with a certified translation and all must be notarized by the Notary Public and attested Indian High Commission official or Embassy.

Author Bio:

Seema Mehra is a Chartered Accountant at Ashok Maheshwary & Associates, top accounting firms in india that provides accounting services in india in a convenient manner. She is a professional writer and loves to share Financial related topics.

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Pneumatic conveying is a type of system which we use to transport heavy material, powders and granules using a pipeline instead of using the conventional methods such as conveyors or other forms of technology which can be used for transporting such materials. The system of pneumatic conveying is solely depended upon differential pressure and the flow of nitrogen and air so that they can move the materials. The pneumatic conveyors can be broad of two types such as pressure conveyors, and vacuum conveyors. The two types have their own advantages and disadvantages. However, let us now take a look at the numerous advantages that we get from suing pneumatic conveying. As you can gather there are a variety of benefits which we get from using such a transporting system. Here is a list of some of the important benefits which we get from pneumatic conveying.

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Simple Routing

One of the major advantages which we get from using the transporting system is that it follows a simple route of transportation. This means that certain of the pneumatic conveying system will run in a certain way. For example, let us consider the screw pneumatic conveying system. This system runs only in a straight line and even the inclination is solely depended upon the materials. It follows a uniform pattern and does not stray from the originally laid down path. Since the pneumatic conveying system is of pipelines we can allow the pipelines to be laid down both horizontally and vertically. The pneumatic system can be laid on the floor and hence it can be used at any site which makes it easier for the workers without any troubles. Hence this is a major benefit which we get from using pneumatic conveying.

Wide Range Capacity

As you know that the pneumatic system is depended upon the pressure of gas and sir. Hence it can easily take up great loads. Therefore instead of relying on nut and bolts, you rely on gas and air. And we know that this will allow us to have a greater capacity enabling us to transport more materials at one go.

Ease of Installation

Another reason why we find most people using the pneumatic conveying system is that they are extremely to install. For the installation of the pneumatic system all, we need to do add an extra valve and we can successfully increase the scope of the pneumatic conveying system. Hence this also helps in saving loads of cost which can be avoided. Therefore we should keep these in mind when we considering the transporting system. This is a major advantage which we get from using such type of system.

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Low Maintenance

As you can see that we do not have to spend much time on the maintenance of pneumatic conveying systems. We can easily just have some of the parts removed and we are good to go. You should also know that in the pneumatic conveying system there are only a few parts which need to be changed regularly and which can be done at a very low cost. The parts that need maintenance regularly are the valve, vacuum pump, air compressor, and other such items. These items can easily be fixed in the house also. Hence we save greatly on the maintenance costs.

As you can see that these are some of the important benefits which we receive from using the pneumatic conveying. There are various other benefits which include things such as safety of and also optimal performance is achieved from the system. The pneumatic system is well devised and never fails to give us it's the best working.

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