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Project office

Approval: General RBI permission if conditions met (AD bank) · FC-1

Exists only to execute a contract awarded by an Indian company. If funded from abroad, by an international agency, or by an Indian term loan, it opens under general permission and closes when the project ends.

Can and can't do

AllowedOfficial

Executing the awarded project

Staff, equipment and local spending within the contract.

Source: taxaj.com ·
AllowedOfficial

Up to two foreign currency accounts

USD and home currency at the same AD bank; close on completion.

Source: rbi.org.in · checked
ConditionalOfficial

Interim remittance of surplus

Needs auditor/CA certificate and an undertaking.

Source: rbi.org.in · checked
ConditionalOfficial

Projects without qualifying funding

Otherwise prior RBI approval is required.

Source: rbi.org.in · checked
ConditionalOfficial

Moving funds between projects

Needs prior RBI regional office permission.

Source: rbi.org.in · checked
Not allowedOfficial

Business beyond the contract

New business needs a company or branch.

Source: india-briefing.com · checked

RBI/MCA steps & deadlines

Check general permission conditions
Source: rbi.org.in · checked
AD bank
Report to AD bank; PAN, TAN, GST
Source: india-briefing.com · checked
AD bank · tax
FC-1 registration
Source: taxaj.com ·
MCA
Report to state police
Source: rbi.org.in · checked
State police
Settle taxes and staff, close accounts, remit surplus, ROC closure
Source: taxaj.com ·
AD bank · MCA

Documents

  • Contract with the Indian client
  • Funding evidence (remittance, international agency or Indian term loan)
  • Parent's incorporation and articles (apostilled)
  • Board resolution, POA

Tax

Foreign company rate of 35% plus surcharge and cess. Project offices often constitute a PE, so check treaty construction-PE rules and TDS before signing.

Source: taxaj.com ·

Costs

FC-1 fee₹6,000Official Source: setindiabiz.com ·
Professional feesExample: quoted from opening to closureExample

Timeline

OpeningAbout 4 weeksOfficial Source: india-briefing.com · checked
ValidityFor the project onlyOfficial Source: rbi.org.in · checked

Recent cases

Reported cases plus illustrative examples within real ranges; examples are labelled.

Example

Illustrative: an equipment contract from an Indian chemical company financed by an Indian bank loan.

Example

Illustrative: a state IT project funded by a multilateral agency.

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Project Office · Adullam Incorporation