India Project Office
Set up a Project Office (PO) in India to legally execute specific, temporary projects awarded by Indian entities without committing to a permanent corporate presence.
Project Specific
Yes. A Project Office is permitted to conveniently open two non-interest-bearing foreign currency/INR accounts (one for inward remittances, one for operational expenses) with an AD Category-I Bank.
Inward Funding
The lifespan of a Project Office is inherently tied directly to the project itself. Once the project is officially completed and closure filings are submitted, the PO must be meticulously wound up.
Automatic Repatriation
No, typically a Project Office is explicitly registered to execute one singular project. If a completely new project is awarded, a mathematically separate Project Office or an upgrade to a BO is necessary.
Structure Overview
A Project Office is established by a foreign company purely to execute a specific project in India. It operates comfortably under the RBI's general permission provided the project is legally secured from an Indian entity and is securely funded by documented inward remittances or bilateral/multilateral international financing agencies.
Ideal For:
- Infrastructure & Construction Companies
- Turnkey Engineering Firms
- Energy & Power Plant Contractors
- Specialized Temporary Technical Services
Key Features:
- Temporary Presence: Automatically dissolves upon formal project completion.
- Commercial Activity: Limited exclusively to activities strictly related to the project execution.
- Taxation: Taxed similarly to a foreign company (approx 40%), applied only to project income.
Setup Requirements (RBI Criteria)
- Project Contract: A legally binding contract awarded by an Indian company or government entity.
- Funding Source: Must be funded directly by inward foreign remittance or a recognized international agency.
- Clearance: If it lacks automatic criteria, it might require prior approval from the Reserve Bank of India.
- Registered Office: A locally registered physical address during the duration of the project.
Project Office Registration Process
Typical timeline: 30 - 45 Days
Contract Award
Officially secure and document the project contract from the Indian sponsor.
Submit Form FNC
Submit Form FNC with project details to the AD Bank under the automatic route.
RBI / AD Bank Approval
AD Bank verifies the contract and grants formal permission to establish the PO.
ROC Registration
File Form FC-1 within 30 days of approval with the MCA (ROC) portal.
PAN & TAN Application
Apply to the Income Tax Department for Permanent Account & Tax Numbers.
Bank Account Setup
Establish specialized inward/outward PO banking operations via AD Bank.
Annual Compliance
File Annual Activity Certificate (AAC) sourced from local Chartered Accountants.
Closure Formalities
Upon project completion, cleanly repatriate funds and officially wind up the PO.
Project Office vs. Branch Office (BO)
| Feature | Project Office (PO) | Branch Office (BO) |
|---|---|---|
| Scope | Strictly limited to a single specific project execution | Broad commercial activities comprehensively matching parent company |
| Lifespan | Temporary (Terminates explicitly when project completes) | Permanent / Long-Term (Valid until wound up) |
| Funding | Funded by inward remittances or explicit project sponsor | Self-sustaining locally or heavily via parent remittances |
| Formation Speed | Fast-track under Automatic Route (if criteria met) | Stringent vetting involving heavy RBI & Parent Net Worth checks |
Frequently Asked Questions
Can a Project Office open a bank account in India?
Yes. The net profit derived strictly from the core operation of the Project Office is subject to Indian income tax at the foreign company rate (approx. 40% plus applicable surcharge & cess).
How long can a Project Office remain open?
There is no strict fixed minimum capital by law, but QAR 200,000 is commonly used during registration to demonstrate financial standing.
Can we undertake multiple projects from one Project Office?
Yes, once you have your Computer Card (Immigration Card), you can apply for a block visa quota to hire staff.
Are we subject to Indian Corporate Tax?
The entire process typically takes 2 to 4 weeks, provided all documents (attested AoA, lease, etc.) are ready.