Patent and IP services firms that draft, search, prosecute or analyse patents and trade marks for foreign law firms and companies are exporting services, and if you operate as an LLP, firm or company you file a monthly EDF with your AD bank listing every export invoice. The point that trips IP firms up is the mix on each invoice: professional fees, which are clearly your export, sit next to official fees and disbursements you paid on the client's behalf. Decide how you treat those disbursements before your first EDF, agree it with your CA and bank, and apply it consistently.
Key takeaways
- One EDF per month, due within 30 days from the end of the month in which the invoices were raised.
- Mode of delivery is usually Internet: drafts, search reports and filings are delivered electronically.
- Professional fees are export of services. Official fees and pass-through costs need a deliberate, consistent treatment.
- Legal and technical services carry different codes. P1004 (legal) is a common purpose code for IP work, but confirm with your bank.
- IP firms invoice per matter, so expect many rows. Monthly statements per foreign associate can reduce them where clients agree.
What IP firms actually export
The work varies widely:
- Prosecution work for foreign applicants entering India: filing, responding to examination reports, hearings.
- Drafting and searches for foreign attorneys who need Indian technical drafting capacity: patent drafting, prior-art searches, freedom-to-operate analyses, patent mapping reports.
- Portfolio support: docketing, annuity management, translation and formalities for overseas firms.
- Trade mark and design work for foreign brand owners.
- Litigation support and technical analysis, such as claim charts and infringement studies.
Some of this is legal practice; some is technical and research work done by engineers and scientists. That split matters for codes and, occasionally, for GST.
Fees versus disbursements
| Invoice component | Example | Typical EDF view |
|---|---|---|
| Professional fees | Drafting a response to an examination report | Export of services; part of the invoice value |
| Technical search or analysis | Prior-art search report | Export of services |
| Official fees paid on client's behalf | Fees paid to the Indian Patent Office | Discuss treatment with CA and bank; often shown separately |
| Disbursements | Courier, notarisation, certified copies | Discuss treatment; keep receipts |
| Translation by third parties | Translating a priority document | Depends on contract and who is the supplier |
The EDF lists invoices, and each invoice has one amount. If your invoice combines fees and disbursements, the whole invoice amount goes in the amount column. Some firms prefer separate invoices or clearly separated lines for reimbursable costs, so the GST and FEMA treatment of each part is easy to follow. Our guide on reimbursement of expenses from foreign clients works through the options. Whatever you choose, make the remarks column say what the invoice includes.
Worked example: a typical month
Meridian IP Associates LLP, New Delhi, works mainly with patent firms in the US, Europe and Japan. Its December 2026 invoices:
| Sr. | Recipient | Country | Invoice | Currency | Amount | Description | Remarks |
|---|---|---|---|---|---|---|---|
| 1 | Whitcombe & Hale LLP | USA | MIP/26/D-118 | USD | 2,850 | Response to examination report, matter WH-4471 | Includes USD 350 official fee |
| 2 | Brenner Patentanwälte | Germany | MIP/26/D-121 | EUR | 1,600 | National phase entry, 3 applications | Includes official fees per schedule |
| 3 | Sato & Partners | Japan | MIP/26/D-125 | USD | 4,400 | Freedom-to-operate search and opinion support | Professional fees only |
| 4 | Whitcombe & Hale LLP | USA | MIP/26/D-129 | USD | 1,200 | Prior-art search, matter WH-4502 | Professional fees only |
Four invoices, four rows, even though two are for the same client. The contract column holds the engagement letter or associate agreement reference, plus the matter number. December invoices are due by 30 January 2027.
Making per-matter billing manageable
IP firms can easily raise 40 or 50 invoices a month. Two practical options:
- Monthly statement invoicing per foreign associate, listing every matter, where the associate accepts it.
- Batch preparation: export the month's invoices from your practice management system into a spreadsheet, then copy into the EDF generator in one sitting.
Codes for IP work
| Work type | Purpose code direction (confirm with bank) | SAC direction (confirm with CA) |
|---|---|---|
| Patent and trade mark prosecution, legal opinions | P1004 legal services | Legal services codes |
| Technical searches, patent mapping, analytics | P1009 architectural, engineering and other technical, or P1008 R&D, depending on framing | Technical or research services codes |
| Docketing and portfolio administration | Depends on the service | Depends on the service |
Use the purpose code finder and SAC code finder to shortlist, then confirm. Consistency across the invoice, FIRA and EDF matters more than finding a perfect code.
Royalties are a different animal
If your firm or a client of yours licenses IP and receives royalties, that is not the same as providing IP services. Royalty and licence income has its own treatment and its own purpose codes. Do not mix royalty receipts into a services EDF without advice; see our guide on royalty and licence fees from foreign licensees.
Realisation: chase the associates
Foreign associates often pay on their own client's payment. A US firm may hold your invoice until its client pays them, which can take months. The 9-month realisation period from your invoice date does not wait for that chain. Agree payment terms in your associate agreement, run a monthly ageing list, and request an extension from your AD bank before the 9 months are up if a payment is genuinely delayed.
For the many invoices under ₹10 lakh, the bank may close the EDPMS entry on your periodic declaration that the money has been realised. That route suits IP firms well.
GST and LUT
Legal and technical services supplied to clients abroad are generally exports of services when the Section 2(6) IGST Act conditions are met, and therefore zero-rated. Export under LUT and print "Supply meant for export under LUT without payment of IGST" on the invoice. Legal services have particular GST rules in some situations, so take your CA's view on your exact structure. The EDF is a FEMA declaration and does not change GST or income-tax obligations. This is general information, not legal or tax advice.
Frequently asked questions
Do patent firms need to file an EDF?
Patent and IP firms organised as LLPs, partnerships or companies that invoice foreign clients should file a monthly EDF listing every export invoice. Individual practitioners should watch for the RBI FAQs promised after the 7 October 2026 statement on individuals.
Should official fees be included in the EDF amount?
The EDF records each invoice's amount. If official fees are on the invoice, they are part of that amount. Many firms show them separately or invoice them separately so the treatment is clear. Agree the approach with your CA and bank and note it in remarks.
What purpose code applies to patent prosecution fees?
P1004, legal services, is commonly used for legal work such as prosecution and opinions. Technical searches and analytics may fit other codes. Confirm the code with your AD bank and keep it consistent with your invoice.
Can I list several matters for one client in a single EDF row?
Only if they are on a single invoice. The EDF has one row per invoice. If your foreign associate accepts a monthly statement invoice covering several matters, that invoice becomes one row.
What if a foreign associate pays only after its client pays?
Your 9-month realisation period runs from your invoice date regardless. Follow up regularly, and if payment will come later, request an extension from your AD bank with reasons before the deadline.
Bottom line
IP firms do well with the EDF once disbursements are handled consistently and per-matter invoices are batched. Settle those two questions with your CA and bank, then file on a fixed day each month. The free EDF form generator takes your rows one invoice at a time.
This guide is general information for Indian businesses, not legal or tax advice. Rules and bank processes change — confirm specifics with your AD bank or chartered accountant.