Regarding 2 different JIRA instances.

[Nilesh Deshmukh]

We have 2 different instances for JIRA servers with same tomcat port but 2 different ip address.
We need to have 1 instance for business and other for Development/Testing team.

we need to create/view/update/delete projects across.

The same user can jump across the servers,

The purpose of this is to check

1) IF we can have different teams accessing different servers ( Business and Development/Testing )
2) If Business can push development team projects on which they need to work on, and then the
timesheet/deliverables/documents/ tracking can be done
3) Once the milestones are achieved the intimation can be done to Business/Finance for billing
4) Project closure should be completed by Business after the complete payment cycle is completed.

Kindly suggest the approach.

[Deleted user]

I wouldn't use an approach where Projects have a life cycle. The word Project in Jira is not a project as it is in other project management tools.

Project in Jira is a container of issues with a set of schemes which define the behaviour of everything under it, that's all. I would suggest to use an issue type for this and you will save many weeks of headaches to configure your instances. As I work for an Atlassian Solution partner, I've witnessed all kind of problems related to trying to make a Project in Jira on a real life project.