Project Office

A Project Office (PO) means a place of business established to represent the interests of a foreign company executing a project in India. Such offices are prohibited from undertaking or carrying on any activity other than the activity relating to the execution of the project for which such office is established.


Reserve Bank has granted general permission to foreign companies to establish POs in India, provided they have secured a contract from an Indian company 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

·         the project has been cleared by an appropriate authority; or

·         a company or entity in India awarding the contract has been granted Term Loan by a PFI or a Bank in India for the project.

However, if the above criteria’s are not met, the foreign entity has to approach the RBI, Central Office, for special approval.

Setting up of PO by foreign NGO / NPO / Foreign Government Bodies / Departments are under the Government Route. Such entities are required to apply to RBI for prior permission to establish an office in India.

Validity: Generally, the approval is valid till completion of the project. 

Without prior permission of the Reserve Bank, no person being a citizen of/ registered in Pakistan, Bangladesh, Sri Lanka, Afghanistan, Iran, China, Hong Kong or Macau can establish in India, a PO in India.

Kindy refer FAQ for detailed comparison of Liaison Office, Branch Office and Project Office

                                                                                                                                                                                                                - Update 04/2024