Table of Content
- 1. Step 1: Employment Visa from the Indian Embassy
- 2. Step 2: Minimum Salary of USD 25,000
- 3. Step 3: Employment Contract
- 4. Step 4: FRRO Registration Within 14 Days of Arrival
- 5. Step 5: PAN and Income Tax Compliance
- 6. Step 6: Indian Bank Account
- 7. Step 7: EPF International Worker Registration
- 8. Employer Compliance Summary
- 9. Need Help Hiring Foreign Employees in India?
Foreign subsidiaries, joint ventures, and Global Capability Centres in India often bring in expatriate managers and specialists from the parent company. Since the Immigration and Foreigners Act 2025 came into force on September 1, 2025, registration rules are stricter, and authorities can inspect employer records.
Hiring a foreign national in India correctly from the start is now more important than at any point in the last decade. Here is a step-by-step compliance guide for companies navigating the 2026 framework.
Step 1: Employment Visa from the Indian Embassy
The employee must apply for an Employment Visa (E-Visa category) at the Indian embassy or consulate in their home country, sponsored by the Indian company. A Business Visa does not permit employment.
- Valid for 1 year or the contract term, extendable up to 5 years
- Tied to one employer; a change of employer requires a fresh visa
- Defence, space, nuclear, and other specified sectors require prior Central Government permission
Step 2: Minimum Salary of USD 25,000
The employee must earn a gross salary of at least USD 25,000 per year (approximately ₹23.80 lakh at current exchange rates). Limited exceptions apply for specific categories including ethnic cooks, foreign-language teachers, and translators.
Step 3: Employment Contract
A clear employment agreement is required for the visa application. It should cover the designation, salary in INR, contract period (aligned with the visa), place of work, notice and termination, confidentiality and IP clauses.
Step 4: FRRO Registration Within 14 Days of Arrival
On arrival, Employment Visa holders must register online on the e-FRRO portal within 14 days. The FRRO (Foreigners Regional Registration Office) issues a Residential Permit, which is needed for banking and other KYC. Keep a copy on file for inspections.
Step 5: PAN and Income Tax Compliance
Obtain a PAN for the employee so salary TDS can be deducted correctly under Section 392(1) of the Income Tax Act 2025. The employee becomes a tax resident if they stay 182 days or more in India in a tax year. Resident employees are taxed on worldwide income, subject to Double Taxation Avoidance Agreement (DTAA) relief.
Step 6: Indian Bank Account
Open a resident savings account after FRRO registration, using the passport, visa, Residential Permit, PAN, and employment letter. Salary is credited in INR, and net savings can be remitted abroad through the AD bank with supporting documents.
Step 7: EPF International Worker Registration
Foreign employees are covered as International Workers under the EPF Scheme as updated under the Code on Social Security 2020 and notified in 2026. Register the employee with EPFO and file the monthly IW return.
SSA exemption: employees from Social Security Agreement (SSA) countries, such as Japan and South Korea, can be exempt from Indian PF by submitting a Certificate of Coverage from their home country.
Employer Compliance Summary
| Step | Requirement | When |
| 1 | Employment Visa | Before travel |
| 2 | Salary of at least USD 25,000 | In the offer letter |
| 3 | Employment contract | Before visa application |
| 4 | FRRO registration | Within 14 days of arrival |
| 5 | PAN and salary TDS | Before the first payroll run |
| 6 | Indian bank account | After FRRO registration |
| 7 | EPF International Worker registration or Certificate of Coverage | First payroll month |
Need Help Hiring Foreign Employees in India?
Corporate Legit Consulting LLP helps foreign companies, especially Japanese and Korean investors, with Employment Visa documentation, FRRO registration, expat payroll, PF (IW) compliance, and tax. Contact us to onboard your expatriate team smoothly.
Frequently Asked Questions
No. Paid employment with an Indian company requires an Employment Visa. A Business Visa permits attendance at meetings, conferences, and business discussions but does not authorise the holder to receive salary or perform work for an Indian employer.
The minimum gross annual salary is USD 25,000 (approximately Rs. 23.80 lakh at current exchange rates). This threshold applies to most categories of foreign employees. Limited exceptions exist for specific roles such as ethnic cooks, foreign-language teachers, and translators where no suitably qualified Indian candidate is available.
Yes, unless the employee holds a valid Certificate of Coverage from a Social Security Agreement country. Employees from countries that have signed an SSA with India, including Japan and South Korea, can be exempted from Indian PF contributions during their deputation period by submitting the Certificate of Coverage to the EPFO. Without a valid COC, the International Worker EPF registration and contribution obligation applies from the first payroll month.
Late FRRO registration is a violation of the Immigration and Foreigners Act 2025. The employee faces a penalty for late registration and may face difficulties at airport exit. The employer may also be subject to inspection and compliance scrutiny under the Act. Employers should build FRRO registration into the onboarding checklist as a Day 1 priority rather than leaving it to the employee to manage independently.
A foreign employee who stays in India for 182 days or more in a financial year becomes an Indian tax resident and is taxed on worldwide income under the Income Tax Act 2025. TDS on salary is deducted by the Indian employer under Section 392(1). Where the employee’s home country has a DTAA with India, DTAA relief may reduce double taxation on the same income. The employee should file an Indian income tax return and, where applicable, obtain a Tax Residency Certificate from their home country to claim DTAA benefits.