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If you’re a foreign company looking to take on a contract in India—say, building infrastructure, managing a construction project, or delivering technical services—then you might not want to go all-in with a full-fledged office. That’s where a Project Office becomes a solid option.
It’s one of the most direct and purpose-driven ways to establish a presence in India without the long-term commitment of opening a branch or subsidiary. A Project Office helps you get started with just what you need. Sounds straightforward, right?
What Exactly Is a Project Office?
A Project Office is a temporary business presence in India, set up by a foreign company to execute a specific project. But there’s a catch—it can only be established if the project is awarded by an Indian entity. It’s not designed for regular commercial operations. The sole purpose of this setup is to carry out the assigned project. Once the work is done, the office is closed. So if you’re looking to work on just one project in India, this structure keeps things simple and fully compliant.
Benefits of a Project Office in India
A project office offers significant advantages—both practical and strategic—for foreign companies awarded a specific contract in India.
On Ground Control
Manage the project directly from within India. This means better control over resources, timelines, and execution quality.
No Full Company Setup Required
Access the Indian market for a limited time without the need to register a subsidiary or branch, requiring fewer long-term commitments and no equity investment.
Clear Legal and Tax Identity
Once it is recognized under Indian tax and regulatory laws, you can open a bank account, pay taxes, hire local employees, and operate with legitimacy.
Ideal for One-off or Contract-Based Work
If your goal isn’t to “expand” into India but to execute a single project well and move on, this is the cleanest route. It’s built for that.
Low Compliance Burden
You must follow some rules, but the compliance load is lighter and more project-specific compared to a Private Limited Company.
Eligibilities for Project Office in Indian
The Project Office aims to simplify processes for foreign companies; however, certain conditions must be met before approval can be granted.
- Project is Funded via Inward Remittance
If the money for the Indian project comes from outside India, directly from the parent company, or from another overseas source, then it’s good to go under the automatic route. - The Project is Funded by a Global or Multilateral AgencyIf the project has backing from an international agency like the World Bank, ADB, or similar, this also qualifies for setting up a Project Office.
- Cleared by an Appropriate Indian AuthorityIf your project has official clearance from a central or state government body or a government-backed agency, that works too.
- Funded by an Indian Entity with Local Bank LoanIf an Indian company awarded the project has received a term loan from a public financial institution or a scheduled bank in India to fund it, you qualify.
Note: If your situation doesn’t match any of these? You’ll need to go through the RBI’s approval route, and that takes a bit more paperwork and time.
Registration Process for a Project Office in India
Setting up a Project Office in India isn’t overly complex, but it does require considerable documentation and coordination, mostly virtual.
Here’s how the process unfolds:
- Make Sure You’re Eligible: Before initiating the application, confirm if your project qualifies under the RBI’s automatic route. If it does not, you can still proceed through the approval route.
- File Form FNC Through Your Bank :This form is the real Kickstarter. You’ll be filing it through your AD Bank (that’s your Indian bank, not directly with the RBI. Along with it, you’ll need to attach things like:
- A copy of the project contract
- Company incorporation docs
- Financials for the last few years
- Power of Attorney & Board Resolution
The bank will forward your application to the RBI for their review.
- RBI Approval : If your application falls under the approval route and all documents are in order, you’ll receive RBI’s approval, typically within 2 to 4 weeks, depending on the completeness of your paperwork.
- Get Your PAN and TAN: Apply for the PAN and TAN. These are the tax IDs you’ll need for filings and vendor payments.
- Register with the RoC : Register with the RoC.
- Open a Bank Account : After your PO is official, open a dedicated Indian rupee bank account to receive funds and make payments that are strictly related to your project.
Documents Required
Here’s a quick overview of what’s typically required. Some documents will come from the foreign parent company, while others will be specific to the Indian project.
For Foreign Company
- Certificate of Incorporation (Notarized and Apostilled/Consularized)
- Memorandum and Articles of Association (MoA & AoA)
- Company profile detailing background, experience, and global presence
- Audited financial statements for the last 3 years
- Board resolution authorizing the opening of the project office
- Power of attorney in favor of the local representative
- KYC documents of authorized signatories
For Project
- Copy of the project contract awarded by the Indian entity
- Details of project funding – inward remittance, multilateral agency, etc.
- Letter from the Indian client confirming project details
- If applicable: Approval letters from relevant Indian authorities
Note: Ensure all foreign-origin documents are properly notarized and apostilled or consularized in their country of origin. Incomplete or incorrectly certified documents are one of the most common causes of delays in the approval process.
Compliances for a Project Office in India
Once your Project Office is operational, you must keep up with a few ongoing compliance requirements, such as taxes, regulatory filings, and timely updates to the authorities.
Taxes and GST
Even though your Project Office is temporary, you’re still subject to Indian tax laws, and you’ll need:
A PAN and TAN
- To file income tax returns every year
- To deduct TDS when paying salaries or vendors
- To get GST registration if your work includes the supply of services or
- goods
- Skipping this can lead to fines and penalties.
RBI and RoC Filings
- Each year, you’ll need to file:
- Form FC-3 with the RoC (your annual financials)
- Form FC-4 with RBI if any money is remitted out of India
- Regular reports with your AD Bank, especially around the inflow of funds and project updates
Accounting and Audits
As with any registered entity, maintaining the books of account is mandatory according to Indian accounting standards, and a statutory audit is indeed required each year.
Other Legal Bits
If local staff are hired, they need to register under labor laws such as PF, ESIC, etc. If foreign assets or liabilities become involved, you may also need to file the FLA return with the RBI.
Our Comprehensive Services for the Project Office
We’re not just here to help you set up a Project Office—we’re here to make sure you operate it confidently, compliantly, and without unnecessary delays. We’ve guided foreign companies across sectors through this process, cutting through the confusion and keeping things on track.
Here’s how we make it easier for you:
- Figure out if you qualify: We review your project, contract, and funding source to make sure you’re eligible under RBI’s automatic route—or help you to apply under the approval route if needed
- Get Documents Ready: From notarized docs to apostilled MoA, we help prepare every piece, so nothing bounces back
- Coordinate with Bank: We handle Filing Form FNC, handling follow-ups with the AD Bank, and making sure RBI approvals don’t get stuck.
- File with the RoC: We’ll take care of Form FC-1, MCA login formalities, and get your PO officially registered under the Companies Act.
- Get you Tax Ready: PAN, TAN, GST—we’ll handle the application, paperwork, and status tracking so your PO is ready to go operational.
- Ongoing Support: Need help with filings, audits, or eventually shutting down the PO once the project is over? We’re here for that, too.
You focus on the project—we’ll handle the rest.
Ready to Get Started?
Whether you just want to ask a few questions or you are ready to apply for Project Office online, we’ll walk you through it step-by-step. Our goal is simple: help you go from idea to operation—quickly, legally, and confidently.
Feel free to contact us.
FAQs
No, A Project Office can only work on the project it was set up for—nothing beyond that. It can't take on unrelated contracts, do general trading, or set up additional services. It's a purpose-bound entity, and the RBI is strict about that. You’ll need another setup for unrelated work.
A Project Office lasts as long as the project lasts—no more, no less. Once your project ends, the PO has to be formally closed following RBI and RoC rules. There’s no concept of “extension.” For new work, you’ll need a new PO or a more permanent structure like a branch.
If your project doesn’t meet the automatic route conditions—like foreign inward remittance, approval by Indian authorities, or funding from an Indian bank—then you’ll need to go the approval route. That means submitting your application via your Indian bank (AD Bank), which then takes it to the RBI.
Yes, definitely. You can open multiple POs—just not for the same project. Each PO must be linked to a specific project and go through its own registration and approval cycle. Many foreign EPC or engineering firms follow this model when they have different projects across India.
No direct conversion is allowed. Once the project ends, the Project office must be closed. If you want a more permanent setup in India, like a Branch Office or a wholly owned subsidiary, you’ll have to apply for that separately. It’s a different registration process altogether.
Your PO is treated like any other taxable business entity in India. That means you’ll need to file income tax returns, deduct TDS when required, and register for GST if your activities fall under its scope. PAN and TAN registrations are mandatory. You’ll also need a local audit.
Not really. You can hire local employees, workers, or contractors to help with the project. But yes, once you hire, Indian labor laws kick in. So you’ll need to get EPF and ESIC registrations if applicable, and follow the rules under the Shops and Establishments Act where relevant.
Yes, and it’s a rule. Each PO must have its own dedicated Indian rupee bank account, opened with an Authorized Dealer (AD) Bank. This ensures the RBI can track funds flowing into and out of the project. It also makes life easier for audits and year-end reporting.
First, settle all dues—vendors, taxes, salaries, everything. Then file your final returns and apply for a No Objection Certificate (NOC) from the Income Tax Department. After that, submit closure filings with the RBI, the AD Bank, and the Registrar of Companies. It’s a checklist we can help you with.
No. A Project office is linked to one specific Indian client and project. It can’t take on additional work or new clients under the same registration. If you want to work on more than one project, each one needs its own PO—or you can consider a more flexible business structure.
