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Payroll processing, PF and ESI, employment contracts, and tax and social security compliance for expats working in India, so your team in India is paid correctly and on time.
150+ Subsidiaries Incorporated · 150+ Regular Clients · Since 2016
An Indian subsidiary must pay salaries on time, deduct income tax at source, and register for and pay provident fund (PF), employee state insurance (ESI) and state-level taxes. Employees posted from abroad have extra rules on tax residence and social security. AU Corporate, a New Delhi firm of Chartered Accountants and Company Secretaries serving foreign parents since 2016, runs payroll, social security compliance (PF and ESI), professional tax, labour law compliance, recruitment and FRRO registration for expats at reasonable monthly fees.
Written and reviewed by Abhishek Jaiin, Chartered Accountant (ICAI Membership No. 544646) · Last reviewed:
Indian payroll involves several registrations, monthly payments and yearly returns, and each state has its own rules. Mistakes show up in employees' pay, in tax notices and in provident fund records that are hard to correct later.
AU Corporate processes your payroll, makes the statutory payments, issues payslips and tax certificates, and prepares the employment documents. For expats, we explain the tax and social security position before the employee arrives.
The payroll and expat work an Indian subsidiary needs, in the order it arises.
Job descriptions, sourcing and screening of candidates, interview coordination, offers, reference and background checks, so new hires are ready to join your Indian subsidiary.
Offer letters, employment contracts and policies that follow Indian law and match your parent's standards.
For a new joiner: appointment letter, PAN and bank details, PF and ESI enrolment and payroll set-up. For an exit: notice, final settlement, leave encashment, gratuity, relieving letter and PF exit.
Attendance and pay inputs, salary calculation, payslips, bank payment file and a payroll summary for your finance team.
Registration, monthly contributions and returns for provident fund (PF) and employee state insurance (ESI), including the rules for foreign employees and India's social security agreements.
Registration, deduction, payment and returns in the states that levy professional tax, with the labour welfare fund where the state requires it.
Income tax deducted from salaries, deposited with the government, with the quarterly TDS return and the annual tax certificate for each employee.
Registrations and returns under the four labour codes and the state Shops and Establishments law, covering wages, bonus, gratuity, working hours, leave, contract labour and the Internal Committee under the law on sexual harassment at work.
Tax residence, tax on salary and allowances, treaty relief and the social security position for employees working in India from other countries.
Registration of foreign employees with the Foreigners Regional Registration Office through the e-FRRO portal, with visa extensions and updates.
A check of your payroll, registrations and returns against the labour codes, with a list of errors and the cost of fixing them.
Five items to begin. For an existing payroll we start from your latest payslips and returns.
Name, PAN, bank account, date of joining and pay structure for each employee.
Attendance, leave, bonuses and deductions for each month, by an agreed date.
PAN, TAN and any existing PF, ESI and professional tax registrations.
Passport, visa, home-country payroll details and the assignment letter for each expat.
Past payslips, returns and tax certificates for an existing payroll.
The same steps every month, so your employees always know when they will be paid.
You share attendance and pay changes.
We calculate pay, tax and statutory deductions.
You approve the payroll summary.
Salary is paid and payslips are sent.
PF, ESI and tax are paid and returns filed.
Reasonable monthly fees, confirmed in writing before we start.
Not included: the salary and statutory contributions themselves, visa and immigration application fees, recruitment fees for each role, and the individual tax returns of employees, which are available separately from the same team.
What is due, and when, for an Indian subsidiary. We track every date for you.
| When | What | How AU Helps |
|---|---|---|
| Every month, last working days | Salary payment and payslips | Processed and paid |
| By the 7th of the next month | Deposit of tax deducted from salary | Calculated and deposited |
| By the 15th of the next month | PF and ESI contributions and returns | Calculated, paid and filed |
| State-wise, monthly or yearly | Professional tax and labour welfare fund | Registered and paid |
| Within 14 days of arrival, for stays over 180 days | FRRO registration of a foreign employee | Registered through the e-FRRO portal |
| Before the visa expires | Visa extension through the FRRO | Application prepared and filed |
| Quarterly | TDS returns on salary | Prepared and filed |
| By 15 June | Annual tax certificate for each employee | Prepared and issued |
Dates and rates depend on the state and the size of the company and can change by notification, so we confirm those that apply to your subsidiary.
Payroll figures must agree with your books, tax returns and statutory records. The same team handles each of them.
Straight answers to the questions foreign finance teams ask most. Can't find yours? Ask us in the form below.
Written and reviewed by Abhishek Jaiin, Chartered Accountant (ICAI Membership No. 544646) · Last reviewed:
This is general guidance based on Indian law and practice as at the date above. It is not advice for your specific case, and rules can change.
Tell us where your parent company is, how many employees you have in India, and whether any expats are working there, and we'll reply with a clear quote.