§ 1
Moving money in and out of a project office
Project offices can open foreign currency accounts with an AD bank in India where the contract provides for payment in foreign currency, in addition to rupee accounts. Funds in these accounts are used only for the project. Transfers between project offices of the same company are allowed in limited circumstances, subject to the bank's conditions.
Intermittent remittances of surplus are permitted on production of an auditor's certificate and proof that Indian liabilities and taxes are covered. On completion, the final remittance follows closure documentation, including tax clearance.
§ 2
The law that applies
| FEMA Regulations, 2016 and RBI Master Direction | Project office accounts, remittances, inter-project transfers and closure. |
|---|
§ 3
Issues and how we solve them
The problems that most often hold up or complicate this work, and how we deal with each.
Issue 1
Funds sit in India long after the project is complete.
Our approach
We start closure documentation in the final months of the project, so tax clearance and the bank's closure process run alongside handover.
Issue 2
The company wants to move funds between two project offices.
Our approach
We check the conditions for inter-project transfers and prepare the request to the AD bank with the supporting certificates.
§ 4
Process and timeline
- 1
Annual
AnnuallyAnnual Activity Certificate and accounts.
- 2
Remittances
As neededSurplus certificates for intermittent remittances.
- 3
Closure
CompletionFinal accounts, tax clearance and closure.
§ 5
Our scope of work
Included
- Bank account structuring
- Annual Activity Certificate
- Remittance certificates
- Inter-project transfer requests
- Closure
§ 6
Questions
Can a project office hold a foreign currency account in India?
Yes, where the contract provides for payment in foreign currency, subject to the AD bank's conditions.
When can the final surplus be repatriated?
After the project is complete, liabilities are settled and the closure documents, including tax clearance, are submitted to the AD bank.
Prepared by CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375, SU and Company · Last reviewed 4 November 2026. General information only, based on the law as it stood on that date; it is not advice for any particular case.