Entity · Project Office

Project Office Registration in India

A project office lets a foreign company set up in India specifically to execute a contract it has been awarded here. It runs for the life of the project and is taxed as a permanent establishment on the project's income.

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In short: A project office executes a specific Indian contract. General permission applies where the prescribed funding conditions are met — an Indian contract funded by inward remittance, an international financing agency or an Indian-bank term loan. Otherwise it needs RBI approval via the AD Category-I bank through Form FNC. Tenure is linked to the contract; India-attributable taxable project income is taxed as a foreign-company PE at 35% plus surcharge and cess. Surplus can be repatriated after tax and audit on closure.

Who it’s for

Consider a project office if your foreign company has secured a specific contract or project in India and needs an on-the-ground presence for that project’s duration, funded by inward remittance, a bilateral/multilateral financing agency, or a term loan from an Indian bank.

When to use a project office

A project office fits a foreign company with a defined Indian contract and a project-specific delivery team, budget and end date. It is an extension of the foreign parent, not a separate Indian company. Keep its activities tied to the contract and plan the eventual closure before launch.

Execute the specific contract awarded to the foreign company in India
Maintain project accounts, local registrations and the office bank account
Use the office only for the approved project, not unrelated commercial operations

For multiple contracts or an ongoing India business, compare a wholly owned subsidiary rather than assuming one project office can support open-ended activity.

Eligibility & funding conditions

The starting point is a specific Indian contract awarded to the foreign parent. General permission is conditional, not a blanket exemption from establishment and bank formalities.

An Indian contract funded by inward remittance from abroad
Funding by an international financing agency
Qualifying term-loan funding from an Indian bank for the project
Where the prescribed general-permission conditions are not met, approval through the AD Category-I bank and RBI as required

Ask the designated AD bank to verify the contract, funding evidence and any sector-specific restrictions. The liaison and branch office net-worth thresholds are not presented as project-office eligibility tests.

How to register a project office in India

1
Confirm general permission or submit Form FNC
Check the Indian contract and prescribed funding conditions with the bank. Where general permission does not apply, submit Form FNC with the contract, parent documents and funding evidence.
2
AD-bank review and RBI referral where required
The AD Category-I bank reviews the application under the delegated approval framework and forwards it to the RBI where prior approval is required. Sensitive sectors and specified applicant circumstances need additional scrutiny.
3
Obtain the Unique Identification Number (UIN)
The office is allotted a UIN through the applicable RBI/AD-bank process. Complete the required establishment notifications and retain the approval or general-permission records.
4
Set up registrations and the office bank account
Register PAN and TAN, complete the applicable foreign-company registration filings, and open the office bank account. Register for GST where applicable to the office’s activities.
5
File the annual Annual Activity Certificate (AAC)
Have the accounts audited and submit the AAC with audited accounts to the designated AD bank and relevant authorities as applicable. Confirm the filing recipients and deadlines for your office; ongoing tax and other statutory filings remain separate.

Documents required

Certificate of incorporation / registration of the foreign parent — apostilled (Hague countries) or attested (e.g. UAE: MOFA + Indian mission)
Charter documents (Memorandum & Articles or equivalent) — apostilled/attested
Latest audited financial statements of the parent (parent financials and funding evidence) and a net-worth certificate from the parent’s auditor/CPA
Board resolution approving the India office and the authorised signatory — apostilled/attested
Passport and address proof of the authorised signatory — apostilled/attested
Details of proposed activities, business plan and the India office address
Banker’s report from the parent’s bank (commonly requested by the AD bank)
The Indian contract/award letter and evidence of project funding

Documents from non-Hague countries (e.g. UAE) are attested via MOFA + the Indian mission rather than apostilled.

Tax & repatriation

The project office is treated as a permanent establishment of the parent. India-attributable taxable project income is subject to the foreign-company rate of 35% plus surcharge and cess, with applicable treaty provisions and project facts reviewed separately. Related-party transactions require transfer-pricing review and Form 3CEB where applicable.

Project stage	Tax and remittance point
Operations	PE tax at 35% plus surcharge and cess on India-attributable taxable project income
Annual compliance	Audit, tax returns, AAC and applicable GST/TDS filings
Completion	Settle liabilities and verify taxes and audited project surplus
Surplus remittance	AD-bank review and applicable tax/remittance documentation on closure

Review profit repatriation from India and Section 195 withholding and Forms 15CA/15CB where applicable. Do not treat the project surplus as automatically tax-free.

Closure

The office’s tenure ends with the project. Closure proceeds through the designated AD bank, supported by a Chartered Accountant’s certificate, final audited accounts and required AAC or other filings. Complete the contractual handover and settle creditors, employees, taxes and other obligations before seeking to remit the balance.

Confirm project completion and the absence or settlement of outstanding liabilities
Prepare the audit, CA certificate and closure documents required by the bank
Complete applicable tax filings and cancel registrations such as GST where held
Remit eligible surplus after tax, audit and required banking/regulatory clearance

Indicative cost & timeline

Item	Indicative guide
Setup (professional fees)	USD 2,500–5,000
Annual compliance	USD 1,500–4,500
Timeline	Typically around 4–8 weeks for RBI/AD-bank approval once your documents are complete and apostilled — indicative, and dependent on the activities, sector and any RBI referral.

Indicative only — we confirm a fixed fee after scoping your parent company, activities and documents.

Compare your India entry options

Branch office registration in India — specified commercial activities
Liaison office registration in India — representative activities only
Liaison, branch and project office comparison
Wholly owned subsidiary in India — a separate Indian company
Company registration in India for foreign businesses

Frequently asked questions

How do I register a project office in India?

First confirm that the awarded Indian contract meets the prescribed conditions for general permission. Otherwise apply in Form FNC through an AD Category-I bank for the required RBI approval. Complete the UIN and establishment formalities, PAN/TAN, applicable GST registration and office bank account, then maintain audited accounts and file the annual AAC as applicable.

When can a foreign company open a project office?

A foreign company can use a project office to execute a specific contract awarded in India. General permission applies where the prescribed conditions are met, including qualifying funding through inward remittance, an international financing agency or an Indian-bank term loan. Have the AD bank verify the contract and funding route; otherwise obtain the required approval.

How is a project office taxed in India?

A project office is treated as a permanent establishment of the foreign parent and taxed on India-attributable taxable project income at the foreign-company rate of 35% plus surcharge and cess. Applicable treaty provisions, income attribution, transfer pricing and the facts should be reviewed with a tax adviser.

How long does a project office last?

Its tenure is linked to the duration of the underlying Indian contract. The office exists to execute that project, not to carry on unrelated or open-ended business. Once the contract is completed, settle obligations and complete closure through the designated AD bank, subject to applicable permissions and filings.

Can I repatriate the project surplus?

Yes. Surplus can be repatriated on closure after applicable Indian tax, audit and settlement of project liabilities. The AD bank reviews the Chartered Accountant’s certificate, required closure documents and remittance conditions. Complete withholding and Forms 15CA/15CB where applicable; repatriation is not an automatic tax-free withdrawal.

How much does a project office in India cost and how long does it take?

As an indicative guide, setting up an office via Form FNC is around USD 2,500–5,000 in professional fees, with annual compliance around USD 1,500–4,500 depending on the activities and headcount. RBI/AD-bank approval typically takes around 4–8 weeks once your documents are complete and apostilled, subject to the activities, sector and any RBI referral. We confirm a fixed-fee proposal after scoping.

Reviewed by CA Regi Tom Antony, Regi Tom Antony & Associates. Last reviewed: October 2026. General guidance, not tax or legal advice on your facts; confirm the applicable approval, filing and treaty requirements.

Setting up a project office in India?

We help review your contract and funding route, coordinate establishment formalities and plan tax, annual compliance and closure.