India rules · all investors

Relocating Staff: India rules for foreign companies

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375

Employment visas are issued to skilled foreign nationals earning above the salary floor. Family members travel on dependant visas. Registration with the Foreigners Regional Registration Office is required within 14 days of arrival for stays longer than 180 days.

Planning the move

Tax residence in the year of arrival depends on days in India and, in some cases, the previous years. Arriving late in the tax year can keep the person non-resident for that year, which changes how foreign income is taxed.

Practical items matter as much as legal ones: housing leases, school places, bank accounts and health insurance all take time to arrange.

Checklist

Employment visa and dependant visas.
Indian and home-country tax residence for the move year.
Provident fund registration as an international worker.
Shadow payroll if pay continues at home.
Housing, schooling and banking.

Checklist

Employment and dependant visas
FRRO registration plan
Residence analysis for the move year
Payroll and social security set-up
Housing, schooling and insurance

Common mistakes

Travelling on a business visa to work
Missing FRRO registration
Ignoring split-year tax
No shadow payroll for home-paid salary

How this applies to your country

Our service: Payroll and expatriates

Questions

Can someone work on a business visa?

No. A business visa covers meetings and similar activities, not employment in India.

When does a relocated employee become Indian resident?

Generally after 182 days in India in the tax year, or under the longer-history test, with exceptions.

Queries

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