An Australian executive who will work in India needs an employment visa sponsored by the Indian company, registration with the Foreigners Regional Registration Office for longer stays, housing, a local bank account and a tax and social security plan. The assignment can also create a permanent establishment risk for the Australian parent, so the structure and documents should be settled before the move.
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Key facts
| Right visa | A business visa is for meetings. Working in India needs an employment visa, generally for a salary of at least USD 25,000 a year |
|---|---|
| Registration | Foreigners on stays of more than 180 days register with the FRRO within 14 days of arrival |
| Tax residency | Resident if present in India for 182 days or more in the year, or for 60 days in the year and 365 days in the preceding four years; this decides how much income is taxable in India |
| Social security | India and Australia have a Social Security Agreement (in force since 1 January 2016). A certificate of coverage from the ATO can keep an Australian secondee in Australian superannuation and out of Indian provident fund for up to five years |
| Parent's risk | Seconded staff can create a permanent establishment for the Australian company |
Decide the assignment structure
| Secondment from Australia | Local employment in India | |
|---|---|---|
| Employer | Australian parent, with staff working for the Indian company | The Indian subsidiary |
| Contract | Assignment letter plus a secondment agreement between the entities | Indian employment contract |
| Payroll | Often split between Australia and India | Indian payroll |
| 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 for the subsidiary |
The relocation steps
- Agree the assignment structure and terms.
- The Indian company sponsors an employment visa and the executive applies.
- On arrival, the executive registers with the FRRO if the stay requires it.
- Arrange housing, a rental agreement and a local bank account.
- Set up payroll, Withholding Tax and the tax residency tracker.
- File the Indian tax return and coordinate with the Australian tax adviser for the Australian return.
Tax and social security
India taxes income earned for work done in India. Whether other income is also taxed depends on residency, which is based on days of presence under the income tax law. Australia taxes its residents on worldwide income, with a foreign income tax offset for tax paid in India. The India-Australia tax treaty can help, including the 183-day rule in Article 15 for short visits, and your Australian adviser should model the position for each person. See treaty and social security for foreign employees.
India and Australia have a Social Security Agreement. If an Australian employee is temporarily assigned to India and the employer obtains a certificate of coverage from the ATO, the employee stays in the Australian superannuation system and is excluded from Indian provident fund for the period covered, up to five years. Without a certificate, an international worker in India contributes to provident fund on full wages, and the Australian superannuation guarantee may also apply, so the certificate should be obtained before the assignment starts.
Housing, banking and local registrations
- Short-term serviced accommodation or a leased home, with a proper rental agreement.
- A resident bank account once the visa and registrations are in place.
- Mobile, utilities and address proof, which are needed for most local registrations.
What this means for an Australian parent
- Before sending anyone, review whether the assignment creates a permanent establishment, for example if the executive negotiates or concludes contracts for the Australian company. See tax treaty and PE risk.
- If the parent recharges salary to the subsidiary, document it in an agreement and include it in transfer pricing. See transfer pricing.
Mistakes to avoid
- Sending an executive on a business visa to work.
- Missing the FRRO registration for a long stay.
- Not tracking days in India, which decides tax residency.
- Having no assignment agreement or cost-recharge terms.
- Skipping the permanent establishment review.
How AU Corporate handles this
We handle visas, accommodation, bank account operations and tax filings for expats of foreign companies.
Related services: HR and payroll
Official sources
Rules on this page can be verified at the primary sources: Ministry of Corporate Affairs, Reserve Bank of India, Income Tax Department and the GST portal.
Frequently asked questions
Can an Australian executive work on a business visa?
An Australian executive cannot work in India on a business visa. A business visa is for meetings and similar activities, and working for an Indian company needs an employment visa.
Who sponsors the visa?
The Indian company that will employ or host the executive sponsors the application. Conditions such as minimum salary can apply.
Do expats pay Indian income tax?
Income earned for work done in India is taxable in India, subject to Article 15 of the India-Australia treaty, which can exempt a visit of up to 183 days in the Indian tax year where the employer is Australian and the cost is not borne by an Indian entity. The treatment of other income depends on Indian tax residency.
Does sending an executive create a permanent establishment?
Sending an executive to India can create a permanent establishment, particularly if the executive negotiates or concludes contracts for the Australian company. The structure should be reviewed before the move.
What visa does an Australian executive need?
An Australian executive needs an employment visa to work in India, because a business visa suits only short meetings. An employment visa typically has a minimum salary condition, and longer stays require registration with the Foreigners Regional Registration Office.
Can EOR employees move into the subsidiary later?
EOR employees can move into the subsidiary later with planning. Employees must agree to the transfer, their service history and benefits such as gratuity and provident fund should carry over, and contracts and notice periods need to be handled, with timing planned so that there is no gap in employment.
How do ESOPs for Indian employees of an Australian parent work?
The Australian parent grants options or restricted stock units to employees of the Indian subsidiary under its plan. FEMA overseas investment rules and reporting apply to the employees, and tax arises on exercise or vesting as salary, with Withholding Tax, and again as capital gains on sale.
Does the Australian parent have to travel to India?
An Australian parent does not have to travel to India to set up a subsidiary. Incorporation can be completed online using apostilled documents and digital signatures. Banks set their own KYC rules, so the bank's verification requirements should be confirmed early.
What statutory benefits apply to employees in India?
Employees in India typically receive provident fund, ESI for eligible wages, gratuity after the qualifying service period, bonus where applicable, professional tax in some states, and leave benefits. India's labour codes are consolidating these, so the current position for the state and headcount should be confirmed.
Can Indian employees receive Australian parent shares?
Indian employees can receive Australian parent shares under the parent's plan, subject to FEMA overseas investment rules and reporting. The tax and withholding treatment needs to be set up in advance.
What is the minimum salary for an Indian employment visa?
An Indian employment visa generally needs the foreign national to earn at least USD 25,000 a year, with limited exceptions. A foreigner staying more than 180 days must register with the FRRO within 14 days of arrival.
Do Australian employees in India pay provident fund?
Not if they hold a certificate of coverage under the India-Australia Social Security Agreement. The ATO issues the certificate to the Australian employer for a temporary assignment of up to five years, and the employee stays in the Australian superannuation system. Without a certificate, provident fund applies to an international worker on full wages.
Related guides
Treaty and Social Security for Australian Employees in India: Article 15 and the Social Security Agreement
How the India-Australia DTAA (Article 15) and the India-Australia Social Security Agreement apply to Australian employees working in India: the 183-day rule, Indian tax residency, certificates of coverage, provident fund and superannuation.
Read the guide →Hiring and Payroll in India for Australian Companies: Contracts, PF, ESI and Gratuity
How Australian companies hire in India: employment contracts, provident fund, ESI, gratuity, professional tax, payroll steps and India's labour codes.
Read the guide →The India-Australia Tax Treaty (DTAA) and Permanent Establishment Risk for Australian Companies
How the India-Australia tax treaty (DTAA) applies to payments to your Australian parent: Withholding Tax rates, Tax Residency Certificate, Form 41 and permanent establishment risk.
Read the guide →Employer of Record vs. Subsidiary in India: When to Use Each
Compare an Employer of Record with your own Indian subsidiary: speed, control, compliance, tax presence and when to convert. A guide for Australian companies.
Read the guide →Sources
Last updated 15 October 2026. General information only, not legal or tax advice. Indian and Australian rules change often; confirm current requirements before acting.