India has become one of the most attractive destinations for foreign investment. With the government actively promoting initiatives like Make in India, Green Hydrogen Mission, and infrastructure development, foreign companies are increasingly exploring opportunities here. To start operations without forming a full-fledged company, many foreign firms choose to set up a Project Office in India. But what exactly is a Project Office, and how is it different from a liaison office or subsidiary?

In this guide, Corpbiz breaks down everything you need to know about Project Office registration in India — how it works, its benefits, legal procedures, and key considerations for foreign companies looking to set up operations in India.

What Is a Project Office?

A Project Office (PO) is a temporary office set up by a foreign company in India to execute a specific project. It is not a permanent business entity like an Indian subsidiary or a sole proprietorship. Instead, it’s created for the limited duration of a contract or assignment.

This type of office allows foreign companies to perform activities such as executing contracts, site supervision, and coordination related to a project. Once the project is completed, the Project Office is closed.

Who Can Set Up a Project Office in India?

A foreign company can open a Project Office in India if it has secured a contract from an Indian company to execute a project. The project must be funded in any one of the following ways:

• Directly by inward remittance from abroad
  
• By a bilateral or multilateral international financing agency
  
• Through an Indian company granting a loan or guarantee for the project
  

The setup must also align with Reserve Bank of India (RBI) guidelines and get necessary approvals when required.

Benefits of Setting Up a Project Office

Setting up a Project Office offers several advantages:

• Legal presence in India without forming a full subsidiary
  
• Easy compliance compared to permanent setups
  
• Access to the local market and skilled workforce
  
• Ideal for large infrastructure or energy projects like Green Hydrogen Plant Setup
  
• Can manage execution, site visits, and procurement in India
  

Step-by-Step: Project Office Registration Process in India

Here’s a simple breakdown of how you can register your Project Office with the help of Corpbiz:

Step 1: Contract with an Indian Company

You must have a project contract with an Indian company. This contract will be the foundation of your Project Office application.

Step 2: Approval from RBI (If Required)

In many cases, Project Offices can be set up under the automatic route (no prior RBI approval). However, if the parent company is based in countries like Pakistan, Bangladesh, Sri Lanka, etc., prior RBI approval is mandatory.

Step 3: Apply to AD Bank

Submit the application in Form FNC to an Authorized Dealer (AD) Bank along with the required documents.

Step 4: Obtain PAN and Tax Registration

Get the PAN (Permanent Account Number) from the Income Tax Department. You may also need GST registration, depending on your business activity.

Step 5: Register with the Registrar of Companies (RoC)

Within 30 days of starting the office, registration with the RoC is mandatory.

Documents Required for Project Office Registration

• A copy of the project contract awarded by an Indian company
  
• Certificate of incorporation and charter documents of the parent company
  
• A letter from the Indian company detailing the nature of the project
  
• Details of funding—proof that the project is funded through one of the RBI-approved routes
  
• Board resolution for setting up the Project Office
  
• Banker’s report from the parent company’s bank
  

Project Office vs Liaison Office vs Indian Subsidiary vs Sole Proprietorship

Feature	Project Office	Liaison Office	Indian Subsidiary	Sole Proprietorship
Duration	Temporary	Temporary	Permanent	Permanent (Indian citizens only)
Activities Allowed	Execution of the project	Communication & liaison	All business activities	All business activities
Legal Entity	Extension of foreign co.	Extension of foreign co.	Separate legal entity	Single-owner structure
Ownership	Foreign Company	Foreign Company	Indian Company with Foreign Shareholders	Individual
FDI Route	Allowed under conditions	Strictly restricted	Allowed	Not allowed for foreigners

Project Offices and Green Hydrogen Projects

With India pushing for clean energy and launching the Green Hydrogen Mission, many foreign companies are planning Green Hydrogen Plant Setup projects in India. Project Offices are the ideal way to execute such large-scale, time-bound projects. From managing on-site installations to coordinating with Indian partners and vendors, a Project Office can serve as your project hub.

Corpbiz Can Help You Set Up Your Project Office

At Corpbiz, we specialize in Project Office registration, Liaison Office registration in India, Indian subsidiary company registration, and even Sole Proprietorship registration (for Indian residents).

Here’s how we help:

• End-to-end support from documentation to RBI/AD Bank approvals
  
• Fast PAN and tax registration
  
• Assistance with opening a bank account and RoC registration
  
• Customized legal compliance for sectors like energy, construction, and R&D
  
• Post-registration compliance and office setup support
  

Frequently Asked Questions (FAQs)

Is prior RBI approval mandatory to set up a Project Office in India?

No, not in all cases. If the project is funded through inward remittance or international financial institutions, and the foreign company is not from a restricted country, it can be set up under the automatic route.

Can a Project Office perform commercial activities?

Yes, but only those related to the specific project it was set up for. It cannot take up unrelated commercial or trading activities.

How long can a Project Office remain active?

The office can operate until the completion of the project. After that, it must be closed as per RBI and RoC guidelines.

Can foreign companies open more than one Project Office?

Yes, if there are multiple projects with different Indian companies, separate Project Offices can be opened with proper documentation and approvals.

What are the tax implications of setting up a Project Office?

Project Offices are subject to Indian tax laws. Income earned in India is taxable, and appropriate registrations (like PAN and GST) are mandatory.

Final Words by Atul Shukla

If you’re a foreign company planning to execute a project in India—whether it’s building infrastructure or setting up a Green Hydrogen Plant—a Project Office is your smartest and most compliant route. It allows you to run project-specific operations without the burden of setting up a full company.