India market entry · Project office registration
Project Office Registration in India for Foreign Companies
Prepared by S U and Company's CA-led advisory team · Published 27 October 2026 · About S U and Company
A project office is the foreign company itself, present in India for exactly as long as it takes to execute one specific contract. Unlike a branch office, it does not need to clear a net-worth or profit-track-record test — it needs the contract and the right funding structure behind it, which for many foreign contractors makes it the faster of the two routes to set up.
Quick answer
How does a foreign company register a project office in India?
A foreign company that has secured a contract from an Indian company can set up a project office under general permission through an authorised dealer bank, provided the project has its regulatory clearances and meets one of three funding conditions. It files Form FNC, then Form FC-1 with the Registrar of Companies within 30 days, and obtains PAN and TAN. The process typically takes 3 to 6 weeks.
1. The funding conditions for general permission
A project office qualifies for general permission — the faster route, through an authorised dealer (AD) Category-I bank rather than direct RBI approval — if the project has its regulatory clearances where required, and meets at least one of three funding conditions:
- The project is funded directly by inward remittance from abroad.
- The project is funded by a bilateral or multilateral international financing agency.
- The Indian company awarding the contract has a term loan from a public financial institution or bank for the project.
Where none of these apply, or the applicant's country needs prior approval regardless of funding (Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong and Macau), or a restricted sector such as defence or telecom is involved, the application goes to the RBI directly instead. A Sri Lankan applicant additionally registers with the State Police.
2. What a project office is permitted to do
A project office may carry out only the activity relating to the specific project named in its contract. It cannot take up other business under the same approval, and it cannot continue operating once the project is complete — the clock built into the structure is one of the main things that distinguishes it from a branch office, which has no fixed end date.
3. The document set
- The contract or award letter from the Indian company.
- Proof of the funding condition the project meets.
- Certificate of incorporation and constitutional documents, notarised and apostilled.
- A board resolution approving the project office and an authorised signatory.
- The foreign company's latest audited financial statements.
- The project site or office address in India, and an authorised representative.
4. The registration sequence
- Route check. Confirm the contract, funding condition and clearances to decide between the AD bank route and RBI approval.
- Form FNC. Prepare the application and document set.
- Approval. Filed with the AD bank, or the RBI where needed.
- ROC, PAN, TAN. File Form FC-1 with the Registrar within 30 days of setting up, then obtain PAN and TAN.
- Bank account. Open the project office's account and receive the first remittance.
The sequence typically runs about 3 to 6 weeks under general permission, longer where RBI approval applies, with Indian filings generally prepared in parallel with the overseas notarisation and apostille process.
5. Project office vs branch office vs liaison office
| Point | Project office | Branch office | Liaison office |
|---|---|---|---|
| Purpose | Execute one contract awarded by an Indian company | Carry on the parent's permitted business | Represent the parent; no commercial activity |
| Duration | For the project only | No fixed end | Approved period, renewable |
| Approval | General permission via AD bank if funding conditions are met; else RBI | FEMA approval; net-worth and track-record tests apply | AD bank or RBI |
| Can earn income | Yes, from the project | Yes, from permitted activities | No |
See our 4-way entity comparison for the full picture against a wholly owned subsidiary and an LLP as well.
6. What comes after registration
Registration opens the door; the compliance runs for as long as the project does. See our guides on each remaining workstream:
- FEMA and RBI compliance for a project office — the Annual Activity Certificate and surplus remittance on completion.
- Tax, GST and transfer pricing for a project office — income tax, presumptive taxation, and GST.
- Accounting, reporting and audit for a project office — project-wise bookkeeping and completion accounts.
- Payroll and labour law compliance for a project office — fixed-term contracts, EPF/ESIC, and FRRO.
- ROC compliance for a project office (FC forms) — Form FC-1 through closure.
Frequently asked questions
Who can set up a project office in India?
A foreign company that has secured a contract from an Indian company to execute a specific project in India can set up a project office, provided the project meets the funding and clearance conditions for general permission, or otherwise applies to the Reserve Bank of India directly.
What are the conditions for general permission?
The project needs its regulatory clearances where required, and must meet one of three funding conditions: direct inward remittance from abroad, funding by a bilateral or multilateral international financing agency, or a term loan to the Indian awarding company from a public financial institution or bank.
When is RBI approval needed instead of general permission?
Where the funding conditions above are not met, where the applicant is from a country such as Sri Lanka that needs prior approval regardless of funding, or where a restricted sector such as defence or telecom is involved.
What can a project office do in India?
Only the activity relating to the specific project named in the contract. It cannot take up other business, and it cannot continue operating once the project is complete — unlike a branch office, which has no fixed end date.
How long does project office registration take?
Typically about 3 to 6 weeks under general permission, longer where RBI approval is needed. The main variables are the authorised dealer bank’s own timeline and how quickly the foreign company’s documents are notarised and apostilled.
What happens when the project is complete?
The project office is closed through the authorised dealer bank, and the surplus of the project is remitted to the foreign company after tax, supported by a Chartered Accountant’s certificate.
What is the difference between a project office and a branch office?
A project office is temporary and tied to one specific contract; a branch office carries on the parent’s permitted business with no fixed end date. A project office is usually quicker to set up where general permission applies, since it avoids the branch office’s net-worth and track-record eligibility tests.
How S U and Company can help
We check which route applies to a specific contract, prepare and file Form FNC and Form FC-1, and coordinate the bank account opening for foreign contractors setting up a project office in India. See our branch office registration guide if the presence is an ongoing operation rather than a single contract, or explore the US-to-India entry guides.
Sources and further reading
- Reserve Bank of India — FEMA and the general permission framework for project offices.
- Ministry of Corporate Affairs — Form FC-1 and company-law registration.