5 Things to Consider When Employing in India
Expanding your business in India? Here are five things you need to keep in mind before starting your hiring process.
#1: Make Sure You Know Your Responsibilities as the Employer
Employers will need to provide:
● A permission letter requesting approval for an applicant’s visa registration (two copies);
● A sponsorship letter pledging to take responsibility for the applicant’s conduct in India (two copies);
● A letter which confirms the individual's Indian residential address (two copies);
● An employment contract that states their monthly salary, job title, length of employment, etc. (two copies);
● The company’s Incorporation Certificate.
All documents must be original, except for the Incorporation Certificate. All letters must include the company's letterhead and must be written on paper, marked with the company's official stamp, and signed by a senior manager.
#2: Know If Your Business Fits the Current Economic Needs
There are many fields where you can succeed in India, especially if you are an expert in that field. Here are some of the industries that offer the most lucrative positions in India:
● Information Technology
● Banking
● Tourism
● Engineering
● Manufacturing
● Marketing
● Sales
● Financial services
● Pharmaceuticals
● Automotive
One of the advantages of working in India is the fact that all trade and business ventures often use English as the main language since Indian economy and business is often conducted on a global scale. There are also a lot of expats living and working here, which makes it easier to adapt and adjust.
#3: Do Not Underestimate the Importance of Proper Documentation
It might be mentally draining to draw up paperwork for every single thing, but it is necessary and can protect you legally in the long haul. This applies to purchasing properties and entering work agreements. If you’re renting or buying a place, you’ll want to have the broker or landlord sign in writing the amount you’ve paid for as a deposit. Sign the lease and, when applicable, register it at the corresponding registrar office.
Before any changes are applied to any contract you’ve previously signed, read all clauses meticulously to ensure that you agree to all of them. If you are unsure, you can also get legal help to be more confident of the protection of your assets.
#4: When Hiring Non-Locals, Ensure All Requirements Are Met
Those who come in the country should have a passport that is valid for at least six months after the date of departure. There are different types of visas that are accepted. Keep reading to learn about the appropriate visas allowed in India.
If you are planning on staying for an extended period of time, you’ll have to secure a Registration Certificate as well as a Residence Permit at the local Foreigner’s Registration Office within 14 days after arriving. These offices are often found in the cities, so if you are in a rural area, you might need to travel to get to an office. Overstaying past your permit is not allowed, and you’ll have to pay fines or even face prosecution. Also, as a general rule, it’s wise to carry a copy of your passport all the time.
When leaving the country, you’ll have to pass certain exit requirements. Registered individuals have to submit an exit permit, and if necessary, secure a re-entry permit as well. If you (and your spouse) have been in the country for at least 120 days, it is required to get a tax clearance certificate from the Foreign Section of India’s Income Tax Office.
Everyone needs to fill out Disembarkation (arrival) cards and Embarkation (departure) cards. These contain information about your passport, visa, flight details, address where you will stay, the purpose of your stay, and other related data.
All foreigners need to have a visa to enter India, with the exception of those from Bhutan and Nepal. A handful of citizens are allowed to secure a visa upon arrival. For more information, visit India’s immigration page.
There are different categories of visas depending on the purpose of your visit. Visas are issued by the Indian Consulate or Embassy in your country. It is not allowed to change your visa category after you have already arrived in India.
Employment visas are those which are initially issued for a 1-year stay. It can be extended at the FFRO (Foreigners’ Regional Registration Office) in India, should the employment and job contract continue. Children and spouses will be given an X-visa containing the same expiration date as the employee’s visa.
You can get more info about the difference between a business and an employment visa from the Indian Ministry of Home Affairs.
#5: Avoid Common Mistakes: Ask for Expert Help
For a complete list of requirements and documents, we can help. We’re more than glad to help and answer any questions you might have. If you are having second thoughts about moving and working in India (or any other foreign country), give us a call or message and we’ll give you the answers you need. The best way to relocate to a new country is with full confidence and sufficient information.