US to India · Visa and relocation
Sending a US Executive to India: Visa, Housing and Tax
Prepared by S U and Company's CA-led advisory team · Published 26 October 2026 · About S U and Company
Moving a US executive to run or launch an Indian subsidiary involves more than booking a flight. The right visa category has to be sponsored before arrival, registration formalities follow within weeks of landing, and the assignment itself can quietly create a taxable presence for the US parent if nobody reviews what the executive is actually authorized to do once in India. Settling the structure and the paperwork before the move avoids most of the friction that otherwise surfaces in the first few months.
Quick answer
What does a US company need to arrange before sending an executive to work in India?
An employment visa sponsored by the Indian company (a business visa only covers meetings), registration with the Foreigners Regional Registration Office for stays beyond 180 days, housing, a local bank account, and a tax and social security plan covering both countries. The assignment can also create a permanent establishment risk for the US parent, so the reporting structure and the executive's actual authority should be settled before the move, not after.
1. Decide the assignment structure first
| Secondment from the US | Local employment in India | |
|---|---|---|
| Employer | US parent, with the executive working for the Indian company under the assignment | The Indian subsidiary directly |
| Contract | Assignment letter plus a secondment agreement between the two entities | Indian employment contract |
| Payroll | Often split between the US and India | Indian payroll only |
| Cost recharge | Parent recharges the cost to the subsidiary, which needs transfer pricing support | None |
| Permanent establishment risk | Needs careful review | Lower, if the employee acts only on the subsidiary's behalf |
2. The relocation steps, in order
- Agree the assignment structure and terms before anything else is applied for.
- The Indian company sponsors the employment visa, and the executive applies on that basis.
- On arrival, the executive registers with the FRRO if the length of stay requires it.
- Arrange housing — a proper rental agreement, not an informal arrangement — and a local resident bank account.
- Set up payroll, withholding tax and a tax-residency day-count tracker from the first day in India.
- File the Indian tax return in due course, and coordinate with the US CPA on the corresponding US return.
3. Tax and social security both need a plan
India taxes income earned for work actually done in India. Whether other income is also taxed depends on residency, which is itself based on days of physical presence under the tax law. The US taxes its citizens on worldwide income regardless of location, with credits available for tax already paid in India, and the India-US treaty can help in specific situations — your US adviser should model the position for each executive rather than applying a single template across the team.
India and the US do not have a social security agreement. A foreign worker in India can therefore be required to contribute to provident fund in addition to any ongoing US social security obligations your US adviser confirms — see our guides on EPF for international workers and social security for US expats in India.
4. Housing, banking and the local registrations that follow
- Short-term serviced accommodation, or a leased home under a properly documented rental agreement.
- A resident bank account, which generally follows once the visa and registrations are in place.
- Mobile connection, utilities and address proof, which most subsequent local registrations will ask for.
5. What this means for a US parent
- Before sending anyone, review whether the assignment creates a permanent establishment — for example, if the executive negotiates or concludes contracts on the US company's behalf. See our permanent establishment risk guide.
- If the parent recharges the executive's salary to the subsidiary, document it in an agreement and include it properly in the transfer pricing analysis — see our transfer pricing guide.
6. Mistakes worth avoiding
- Sending an executive in on a business visa to actually work.
- Missing the FRRO registration window for a longer stay.
- Not tracking days in India, which is exactly what decides tax residency.
- Having no assignment agreement or cost-recharge terms in writing.
- Skipping the permanent establishment review before the executive starts acting on the parent's behalf.
Frequently asked questions
Can a US executive work in India on a business visa?
No. A business visa covers meetings, conferences and similar short activities. Anyone actually working for an Indian company needs an employment visa, sponsored by that company, and using a business visa for real work is a visa violation, not a shortcut.
Who sponsors the employment visa?
The Indian company that will employ or host the executive sponsors the application, and conditions such as a minimum salary threshold apply before the visa can be granted.
Do US expats in India pay Indian income tax?
Income earned for work actually performed in India is taxable in India regardless of residency status. Whether other income is also taxed depends on the person’s Indian tax residency and on the India-US tax treaty.
Does sending an executive to India create a permanent establishment for the US parent?
It can, particularly if the executive negotiates or concludes contracts in India on the parent’s behalf. The assignment structure and the executive’s actual authority should be reviewed before the move, not after the fact.
What visa does a US executive need to work in India?
An employment visa, because a business visa only suits short meetings. An employment visa typically carries a minimum salary condition, and a stay beyond 180 days additionally requires registration with the Foreigners Regional Registration Office.
Does the US parent need to travel to India to set up a subsidiary?
No. Incorporation can be completed entirely online using apostilled documents and digital signatures, without anyone traveling. Banks set their own KYC requirements for the subsidiary’s account, so those should be confirmed early regardless of travel plans.
What is the minimum salary for an Indian employment visa?
An Indian employment visa generally requires the foreign national to earn at least USD 25,000 a year, with limited exceptions for certain categories. A foreigner staying more than 180 days must separately register with the FRRO within 14 days of arrival.
How S U and Company can help
We handle employment visa coordination, FRRO registration support, accommodation and bank account setup, and ongoing tax filings for expats of foreign-owned Indian subsidiaries. See our related guides on expat tax residency and EPF for international workers, or explore the US-to-India entry guides.
Sources and further reading
- Indian Visa Online — Ministry of Home Affairs visa categories and requirements.
- Foreigners Regional Registration Office — registration requirements for longer stays.
- Income Tax Department — Indian tax residency rules.