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Entities incorporated outside India planning to execute specific projects in India can set up temporary project/site offices in India. Reserve Bank of India has now granted general permission to foreign entities except citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran or China to establish Project Offices subject to specified conditions. Such offices cannot undertake or carry on any activity other than the activity relating and incidental to execution of the project.

Generally, companies engaged in turnkey projects or installation projects, set up Project Offices. All expenses of Project Offices must be met through inward foreign currency remittances if the rupee component of the contract, if any, is not sufficient to meet the said expenses.

Necessary Conditions to be fulfilled

Entities incorporated outside India may open a Project Office/s in India without the approval of Reserve Bank of India provided it has secured from an Indian company, a contract to execute a project in India and:

The project is funded directly by inward remittance from abroad or

The project is funded by a bilateral or multilateral International Financing Agency or

A company or entity in India awarding the contract has been granted term loan by a Public Financial Institution or a bank in India for the project IV.

The project has been cleared by an appropriate authority

However, if the above criteria are not met, the foreign entity has to approach the Reserve Bank of India, for approval.

Expand All


Whether any approval is required for establishing a Project Office in India?
Whether residents of all countries can set-up project office?
Can a Project Office be set up without the approval of RBI?
For what purpose a Project Office is established in India?
Can a Project Office be opened for carrying on any activity/business in India?
How much time it takes to get the Project Office established in India?
Is there any validity period/duration of Project Office?
Whether any approval is required for closing of Project Office?
Whether any physical presence is required during the approval process of setting up project office?
Do I need to have some Indian residents in the project office?

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