Secondment agreement structuring, employment visa and work permit, PE risk management, tax equalisation, social security totalisation and Indian employment law compliance for foreign companies deputing personnel to India.
Short, direct, on the record.
Not necessarily, but it can. If the secondment arrangement is structured as the foreign employer providing services to the Indian entity through the secondee (rather than a genuine employment transfer), it may create a service PE. The cost recharge arrangement, control and supervision, and economic employer test are key factors in the PE analysis.
Foreign nationals working in India require an Employment visa (E visa). The E visa requires a minimum annual salary of USD 25,000 (with exceptions for certain nationalities and categories). The visa is typically granted for 1 to 5 years and requires FRRO registration within 14 days if the stay exceeds 180 days.
If India has a Social Security Agreement with the home country, the secondee can obtain a Certificate of Coverage from the home country to be exempt from Indian EPF contributions. India has SSAs with 20 countries. Without an SSA, the foreign employee is treated as an international worker and must contribute to EPF from Day 1.
The entire salary attributable to services rendered in India is taxable from Day 1, regardless of who pays the salary or where it is paid. If the secondee qualifies as a resident (182 days or more in India), global income becomes taxable. DTAA relief can prevent double taxation through foreign tax credit in the home country.
Share the home country, number of personnel, proposed duration and the role for a preliminary assessment.
Social security and employment law