What Is a Project Office?
A foreign company that has won a contract to execute a project in India can set up a project office for that project. It is a temporary office that exists only for the duration of the project.
Project offices are set up under the FEMA regulations through an AD Category-I bank when the contract meets the specified conditions, such as being funded by inward remittance or by a multilateral or bilateral funding agency. Some applicants and sectors need prior approval.
Project office set up for your contract
- FEMA conditions checked
- Bank accounts opened
- Closure handled at the end
Who Needs a Project Office?
- Foreign contractors for infrastructure or power projects
- Engineering and EPC companies
- Foreign consultants on government-funded projects
- Technology firms executing large installations
Benefits
Project-specific
No need for a permanent entity.
Local operations
Hire staff and pay vendors in India.
Foreign currency account
Permitted accounts for project receipts and payments.
Repatriation
Surplus can be remitted at the end of the project.
Documents Required
- Contract awarded for the project in India
- Certificate of incorporation of the parent
- Proof of project funding
- Board resolution of the parent
- Details of the project in-charge in India
Project Office Registration Process
Contract review
We check whether the contract meets the FEMA conditions.
Bank filing
The application is filed through your AD bank.
Registrations
ROC (FC-1 where required), PAN, TAN and GST.
Operations
Bank accounts and payroll set up.
Closure
Office closed and surplus repatriated after the project.
Common Mistakes to Avoid
- Using it for other work – A project office can work only on the specified project.
- Missing approvals – Certain countries and sectors need prior approval.
- Ignoring Indian taxes – Project income is taxable in India.
- Late closure – Close the office and file final reports when the project ends.
Ongoing Compliance
Annual Activity Certificate
Filed with the AD bank every year.
Tax returns
Income tax and TDS filings.
GST
Returns if registered.
Closure
Final audit, tax clearance and repatriation.
Why Choose Vaidam Consultancy for Project Office Registration
Expert-led
Company secretaries and tax experts handle your application.
Clear quote upfront
You receive our fee and all government charges before we begin.
Documents checked first
Fewer queries because everything is checked before filing.
One point of contact
A single consultant follows up until the approval is issued.
Frequently Asked Questions
When it has secured a contract in India that meets the FEMA conditions, such as being funded from abroad.
Only for the duration of the project.
Yes, it can open permitted foreign currency accounts with an AD bank.
Usually yes, as a place of business of a foreign company under the Companies Act.
The office is closed and the surplus repatriated after taxes and an auditor’s certificate.