A US 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 US 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 the US do not have a social security agreement, so provident fund can apply to foreign workers |
| Parent's risk | Seconded staff can create a permanent establishment for the US company |
Decide the assignment structure
| Secondment from the US | Local employment in India | |
|---|---|---|
| Employer | US 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 the US 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 US CPA for the US 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. The US taxes its citizens on worldwide income, with credits for tax paid in India. The India-US tax treaty can help, and your US adviser should model the position for each person.
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 US social security obligations that your US adviser will confirm.
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 a US parent
- Before sending anyone, review whether the assignment creates a permanent establishment, for example if the executive negotiates or concludes contracts for the US 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 a US executive work on a business visa?
A US 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. The treatment of other income depends on tax residency and the India-US tax treaty.
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 US company. The structure should be reviewed before the move.
What visa does a US executive need?
A US 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 a US parent work?
The US 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 US parent have to travel to India?
A US 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 US parent shares?
Indian employees can receive US 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.
Related guides
Hiring and Payroll in India for US Companies: Contracts, PF, ESI and Gratuity
How US companies hire in India: employment contracts, provident fund, ESI, gratuity, professional tax, payroll steps and India's labour codes.
Read the guide →The India-US Tax Treaty and Permanent Establishment Risk for US Companies
How the India-US tax treaty applies to payments to your US parent: Withholding Tax rates, Tax Residency Certificate, Form 41 and permanent establishment risk.
Read the guide →US Parent Obligations When You Own an Indian Subsidiary
US reporting that follows when you own an Indian subsidiary: Form 5471, FBAR, Form 8938 and international tax regimes. A guide for US finance teams.
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 US companies.
Read the guide →Sources
Last updated 14 October 2026. General information only, not legal or tax advice. Indian rules change often; confirm current requirements before acting.