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Project Office of a Foreign Company in India

Reviewed by CA and CS Team, Patron Accounting LLP ICAI & ICSI Registered| 15+ Years Experience| Last Updated: Verify Credentials →

Structure: project office of the foreign parent; time-bound and project-specific.

Fees: project office setup starting from INR 84,999 (Exl GST and Govt. Charges).

Approval: RBI general permission via AD bank where funding conditions are met.

Timeline: typically 4 to 8 weeks including AD bank approval and FC-1 filing.

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Foreign Project Office in India: Overview

📌 TL;DR - Project Office Setup Services at a Glance

A project office lets a foreign company execute a specific contract in India for the project's duration. Where funding conditions are met, it can be set up under RBI general permission via an AD bank using Form FNC, then registered with the ROC in Form FC-1. It is closed when the project ends. Patron Accounting does it all from INR 84,999.

Parameter	Detail
Structure	Project office of the foreign parent (project-specific)
Governing Law	FEMA (Establishment in India of a Branch or Office) Regulations, 2016
Approval	AD Category-I bank under RBI general permission; Form FNC; else prior RBI approval
Key Condition	Project funded by inward remittance, IFA, cleared authority, or PFI/bank term loan
Duration	Time-bound to the project; closed on completion
Cost	Project office setup from INR 84,999 (Exl GST and Govt. Charges)
ROC Filing	Form FC-1 within 30 days of establishment

A project office is the natural route for foreign contractors in infrastructure, engineering and EPC who have won an Indian contract and need a presence only for that project. Government fees and approval timelines vary by funding route and country and are billed at actuals; RBI's 2025 draft reforms are noted as proposed, not in force.

Content is reviewed quarterly for accuracy.

What Is a Project Office?

A project office is a place of business that a foreign company sets up in India to execute a specific project for which it has been awarded a contract by an Indian entity. It is governed by FEMA, registered with the Registrar of Companies, and exists only for the duration of that project.

Unlike a liaison office, a project office can carry out the project work and earn from it, but its scope is limited to that project. It is the standard structure for foreign engineering, construction and EPC contractors delivering a defined Indian contract.

Key Terms for Project Office Setup:

Project office: a time-bound presence to execute one specific Indian contract.
Form FNC: the application to the AD bank and RBI to set up a project, branch or liaison office.
General permission: RBI's pre-approval allowing the AD bank to clear a PO where funding conditions are met.
Form FC-1: the ROC registration for a foreign company's place of business.

FEMA Office Form FNC | FC-1

Who Should Open a Project Office?

A project office suits a foreign contractor that has won a specific project in India, typically in infrastructure, power, engineering or EPC, and needs an on-the-ground presence only for that contract. It can earn from the project but cannot take on unrelated business.

It can usually be set up under RBI general permission via the AD bank if the project is funded by inward remittance, by a bilateral or multilateral International Financing Agency, is cleared by an appropriate authority, or the Indian awarder has a term loan from a Public Financial Institution or bank. If none applies, prior RBI approval is required.

Our Project Office Services

Service	What We Do
Route assessment	Confirming whether general permission applies or prior RBI approval is needed.
Form FNC application	Preparation and filing through an AD Category-I bank with the contract.
FC-1 ROC registration	Filing Form FC-1 with the MCA within 30 days of establishment.
Tax registrations	PAN, TAN and GST for the project office.
Project compliance	Annual Activity Certificate, FC-3 and FC-4, and project reporting.
Project closure	Closure through the AD bank and remittance of the surplus on completion.

Our Process

Project Office Setup Process: 6 Steps

From confirming the funding route to running and closing the project, here is how Patron Accounting manages a foreign company's project office in India end to end.

Step 1

Confirm the contract and funding

Verify the Indian contract and which general-permission funding condition the project meets.

Contract verified Funding confirmed

Funding Route Set 01

Step 2

Designate an AD bank

Choose an AD Category-I bank to channel the application and manage FEMA compliance.

AD bank chosen FEMA channel set

AD Bank Designated 02

Step 3

File Form FNC

Submit the Form FNC application with the project contract, award letter, charter and audited accounts.

Form FNC filed Documents attached

Application Filed 03

Step 4

Obtain approval

The AD bank approves under general permission, or refers the case to the RBI for prior approval where needed.

Approval granted Permission cleared

Approved 04

Step 5

Register with the ROC

File Form FC-1 with the Registrar of Companies within 30 days of establishment.

FC-1 filed ROC registered

Registered 05

Step 6

Run and close the project

Obtain PAN, TAN and GST, maintain the AAC and ROC filings, and close the PO when the project ends.

Compliance maintained Closed on completion

Project Delivered 06

Documents Required for a Project Office

Project contract and award letter: from the Indian company.
Certificate of incorporation and charter: of the foreign parent, apostilled or notarised.
Audited financial statements: of the parent for recent years.
Evidence of funding route: inward remittance, IFA, clearance, or PFI/bank term loan.
Board resolution: authorising the project office and the authorised signatory.

Common Challenges and How We Solve Them

Challenge	Impact	How Patron Accounting Solves It
Funding route does not fit general permission	Prior RBI approval is then required	We assess and manage the prior RBI approval route
Activity beyond the project scope	A PO cannot take unrelated business	We keep the PO within its project-specific mandate
Missing FC-1, AAC or tax deadlines	Lapses create FEMA and ROC exposure	We manage the full project compliance calendar
Closure and surplus remittance	Exit formalities are easy to mishandle	We handle AD-bank closure and remittance on completion

Project Office Setup Fees

Fee Component	Amount
Patron Accounting Professional Fees	Starting from INR 84,999 (Exl GST and Govt. Charges)
Government fees	Billed at actuals; vary by funding route and country
Apostille / notarisation and bank charges	At actuals, depending on the parent's jurisdiction
Ongoing compliance and closure	Scoped separately (AAC, FC-3, FC-4, closure)

All fees and charges listed are indicative only and do not constitute a binding offer. Final amounts may vary depending on the volume of work and the complexity involved.

Professional service charges for drafting, filing, and representation are separate from the statutory fees. The exact fee depends on the complexity of the case, disputed amount, and number of hearings required. Contact us for a detailed quote.

Get a free Project Office Setup consultation - Call +91 945 945 6700 or WhatsApp us. No-obligation assessment.

How Long Does Setup Take?

Stage	Estimated Timeline
Project office (overall)	About 4 to 8 weeks
General-permission cases	AD bank can approve relatively quickly
Prior RBI approval / certain countries	Takes longer; FC-1 within 30 days of establishment

Where general permission applies, the AD bank can approve relatively quickly. The FC-1 filing follows within 30 days of establishment, and the office is closed when the project is complete.

Key Benefits

Why Set Up a Project Office with a Professional

Right-sized for one contract

No need for a permanent entity when you only have a single Indian project.

Can earn from the project

Unlike a liaison office, a project office can bill for the contracted work.

Clean FEMA compliance and exit

Timely FC-1, Annual Activity Certificate and AD-bank closure.

Trusted by Foreign Contractors in India

10,000+ Businesses | 4.9 Google Rating | 50,000+ Documents Handled | 15+ Years Experience

Trusted by clients including Hyundai, Asian Paints and Bridgestone. With offices in Pune, Mumbai, Delhi and Gurugram, Patron Accounting serves foreign companies and contractors across India both in-person and remotely.

Project Office vs Branch Office vs Liaison Office

Factor	Project Office	Branch Office	Liaison Office
Purpose	Execute one specific project	Trading, services, research	Market study, liaison
Income in India	Yes, from the project	Yes, permitted activities	Not allowed
Duration	Time-bound to the project	Generally ongoing	3 years, renewable
Approval	General permission or RBI	RBI via AD bank	RBI via AD bank
Best for	Infra and EPC contractors	Established operations	Pre-entry exploration

Related Services

Comparing entry routes? A branch office of a foreign company in India suits broader ongoing operations, a liaison office suits pre-entry market exploration, and a wholly-owned subsidiary suits a permanent India presence; we advise on all of these. Pair the project office with our FDI compliance and, for project accounting, our construction and real estate accounting services.

Legal and Compliance Framework

FEMA (Establishment in India of a Branch or Office) Regulations, 2016: a project office is set up to execute a specific contract through an AD Category-I bank via Form FNC; RBI general permission applies where the prescribed funding conditions are met, otherwise prior RBI approval is required (overseen by the RBI).

Funding conditions for general permission: the project is funded by inward remittance from abroad, by a bilateral or multilateral International Financing Agency, has been cleared by an appropriate authority, or the Indian company awarding the contract has a term loan from a Public Financial Institution or bank in India for the project.

Companies Act, 2013 - Form FC-1: the project office registers with the Registrar of Companies in Form FC-1 within 30 days of establishment, and files FC-3 financial statements and FC-4 annual return each year (via the MCA).

Annual Activity Certificate and closure: the PO files an Annual Activity Certificate certified by a Chartered Accountant with the AD bank and the Directorate General of Income Tax (International Taxation), and on completion of the project is closed through the AD bank with the surplus remitted after taxes (per the Income Tax Department).

Frequently Asked Questions

Common questions about a foreign company's project office in India, general permission, the Form FNC process, earning income, duration and closure.

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What is a project office of a foreign company in India?

A project office is a place of business that a foreign company sets up in India to execute a specific project for which it has been awarded a contract by an Indian entity. It is governed by FEMA, registered with the Registrar of Companies, and exists only for the duration of that project. Unlike a liaison office, it can carry out the project work and earn from it, but its scope is limited to that project.

When can a project office be set up under general permission?

The RBI has given general permission, allowing the AD Category-I bank to approve a project office without prior RBI approval, where any one funding condition is met: the project is funded by inward remittance from abroad, by a bilateral or multilateral International Financing Agency, has been cleared by an appropriate authority, or the Indian company awarding the contract has a term loan from a Public Financial Institution or bank in India. Otherwise prior RBI approval is needed.

How does a foreign company set up a project office in India?

A foreign company sets up a project office by applying to an AD Category-I bank in Form FNC, attaching the project contract, the award letter, the parent's charter and audited accounts. The AD bank verifies the documents and approves under general permission where the funding conditions are met, or refers the case to the RBI. Within 30 days of establishment, the company registers the office with the Registrar of Companies by filing Form FC-1.

Can a project office earn income in India?

Yes, but only from the specific project it was set up to execute. A project office can carry out the contracted project work and bill for it, unlike a liaison office which cannot earn any income. However, it cannot take on business or activities unrelated to the project, and its presence is tied to the project's duration. Income from the project is subject to Indian tax.

How long can a project office operate in India?

A project office is time-bound and exists only for the duration of the specific project it was established to execute. It does not have a fixed validity period like a liaison office; instead, it continues until the project is completed and then must be closed. If the project is extended, the project office's continuation aligns with the extended project timeline, subject to AD bank and FEMA compliance.

What is the difference between a project office and a branch office?

A project office is set up to execute one specific contracted project and exists only for that project's duration, often under RBI general permission. A branch office is a broader, generally ongoing presence that can carry out a range of RBI-permitted activities such as trading, professional services and research. A branch needs a five-year profit track record and USD 100,000 net worth, while a project office is approved mainly on the strength of the contract and its funding.

How is a project office closed after the project ends?

When the project is complete, the project office is closed through the AD Category-I bank. The foreign company submits closure documents, including the final Annual Activity Certificate, audited accounts and confirmation that no liabilities remain, and after meeting tax obligations the surplus can be remitted abroad. The AD bank then reports the closure to the RBI and the office is deregistered with the Registrar of Companies.

India me project office kaise khole?

AD bank ke through Form FNC se RBI general permission lo (funding conditions poori ho to), phir 30 din me ROC ke paas FC-1 file karo. Patron Accounting setup se closure tak sab sambhal leta hai.

Quick Answers

Purpose? Execute one specific Indian contract; time-bound.
Approval? AD bank under RBI general permission, or prior RBI approval.
Can it earn income? Yes, but only from the project.
ROC filing? Form FC-1 within 30 days of establishment.

Won an Indian Project Contract? Set Up Your Project Office

A project office is the most efficient route for a single Indian contract, but the funding-condition test, the Form FNC application and the closure formalities all need care. Professional handling keeps the approval, project compliance and exit clean.

Call +91 945 945 6700 or message us on WhatsApp for a free, no-obligation quote on your project office setup.

Start Your Project Office Today

A project office is the most efficient way for a foreign contractor to deliver a specific project in India, common in infrastructure, engineering and EPC. It can be set up under RBI general permission through an AD bank where the project's funding meets the prescribed conditions, can earn from the project, and is closed once the work is complete.

The Form FNC application, FC-1 registration, Annual Activity Certificate and closure formalities all need careful handling. Patron Accounting, with 15+ years of experience and a CA and CS team, manages the approval, registration, project compliance and closure end to end.

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Content Created: 3 June 2026 | Last Updated: | Next Review: 3 December 2026 | Reviewed By: CA & CS Team, Patron Accounting LLP

This page is reviewed every 6 months or whenever the RBI branch and office regulations, the FEMA establishment rules, or the Companies Act foreign-company provisions change, including the RBI 2025 draft once notified, so the project office guidance stays current.