Indian work visa for foreign employees seconded to India

Foreign nationals working in India for more than a short visit need an Employment Visa (E-visa). It's distinct from a Business Visa (B-visa) — which is for short-term commercial activity without compensation from an Indian entity. Confusing the two creates immigration problems.

Employment Visa eligibility

• Skilled / highly-skilled professional being employed by an Indian entity.
• Salary threshold — must earn at least USD 25,000 per year (with exceptions for certain categories: ethnic cooks, language teachers, etc.).
• Employment with the Indian entity (Indian salary, Indian payroll).
• Specific job role, specific employer — visa tied to the job.
• Valid passport with minimum 6 months validity.

Application process

1. Indian employer issues a formal appointment letter.
2. Foreign national applies for E-visa from Indian embassy / consulate in home country.
3. Documentation — passport, photos, appointment letter, employer's incorporation documents, salary structure, qualifications.
4. Processing time — 2-6 weeks typically.
5. E-visa initially valid for 1 year, extendable up to 5 years.
6. Multiple-entry visa permits travel in/out of India.

FRRO registration on arrival

Within 14 days of arrival in India (regardless of visa duration), the foreign national must register with the Foreigners Regional Registration Office (FRRO):

• Online registration via the e-FRRO portal.
• Upload passport, visa, employer letter, address proof.
• Receive Residential Permit (RP) and FRRO registration number.
• Update FRRO on any change of address, employer, or extension.
• Penalty for non-registration: ₹2,500 per day of delay.

Tax implications of secondment

• Foreign national on Indian payroll — Indian income tax at slab rate on Indian-source income.
• Residency test — 182+ days in India = Indian tax resident; worldwide income taxable subject to DTAA relief.
• PF applies — International Worker rules (no wage ceiling for IWs from non-SSA countries; US is non-SSA).
• DTAA between home country and India often relieves double taxation.
• Home country may have continuing tax obligations (especially US citizens — worldwide income tax).

Salary structure for foreign secondees

• Indian salary — paid in INR through Indian payroll; subject to Indian tax.
• Home country salary continuation — paid from foreign parent; may or may not be taxable in India.
• Hardship allowance / cost of living adjustment — common for senior secondees.
• Housing — company-paid accommodation or rent allowance.
• Schooling — for accompanying children at international schools (₹6-15L per year per child).
• Annual home leave — flights home for the executive and family.
• Tax equalisation — many MNCs use this to ensure the executive's net pay is the same as it would have been in the home country.

Common pitfalls

1. Trying to use B-visa for actual work — FRRO catches this; deportation risk.
2. Missing the 14-day FRRO deadline.
3. Not updating FRRO on address change.
4. Forgetting PF (International Worker) coverage.
5. Home-country tax obligations overlooked (US tax residency continues regardless).
6. Salary structure not designed for Indian tax efficiency.