Business Visa India 2026 for Foreign Founders and Board Directors

Written by CA Nandini, Krystal7 Consultants. Last updated 2 October 2026.

A foreign founder can use a business visa or an e Business visa to set up a company, attend board meetings and hire staff. Neither visa allows a job in India. A regular business visa runs up to five years, or ten years for US, UK, Canadian, Japanese and South African nationals. Each stay is capped at 180 days. Since G.S.R. 424(E) of 1 Jun 2026, staying past 180 days in a calendar year needs FRRO registration that is granted only in emergent circumstances.

This page is for founders, nominee directors and finance leads of foreign owned Indian companies. It covers permitted activities, the two visa routes, stay limits, the 2026 registration change, documents, payments, the employment visa line, tax residency, PE and penalties.

What can a foreign founder do on an Indian business visa?

A business visa covers commercial visits that are not employment. A founder can explore or set up a venture, attend board and general meetings, recruit staff, buy and sell products, and meet suppliers. Paragraph 40 of MHA's Annex III, "Details of Visas granted by India", lists these purposes. Directors and business partners are named in the list.

The legal base changed on 1 Sep 2025. The Immigration and Foreigners Act, 2025 came into force that day under S.O. 3981(E) of 31 Aug 2025. Section 2 defines a visa as an authorisation to enter, transit, stay in or exit India. The Act and the Rules do not list visa types. The categories and their conditions still come from MHA's Visa Manual, summarised in Annex III of 20 Aug 2020.

Annex III, paragraph 40 grants a business visa for these purposes, among others:

Purpose in Annex III, paragraph 40	What it looks like for a founder	Fits a business visa
Establish an industrial or business venture, or explore the possibility of setting one up (not a proprietorship or partnership firm)	Site visits, meetings with banks, lawyers and landlords before incorporation	Yes
Purchase or sell industrial or commercial products or consumer durables	Sales meetings, signing a distribution deal	Yes
Technical meetings, board meetings or general meetings	Chairing the Indian subsidiary's board meeting or AGM	Yes
Recruitment of manpower	Interviewing and hiring the first Indian team	Yes
Partners in the business or directors of the company	A foreign director visiting the Indian company	Yes, if not full time employment
Participation in exhibitions, trade fairs and business fairs	Running a stand at a trade show	Yes
Buyers who transact business with suppliers in India	Supplier audits and quality checks	Yes
Experts on a short visit for an ongoing project	Short monitoring visit	Yes, but see the project rule below
Pre sales or post sales activity that does not amount to executing a contract or project	Product demonstrations and customer handover	Yes
Trainees of multinational companies, for in house training at the group's regional hub in India	Group trainee programme	Yes

The Embassy of India in Oslo and the Embassy of India in Beijing publish the same list. We read the e Business visa against the same paragraph 40 purposes, and we match the purpose picked in the online form to that list. Our sister guide on the employment visa for foreign employees covers the hire side.

What can a business visitor not do in India?

A business visitor cannot take up full time employment in India. Annex III, paragraph 41 also bars money lending and running a petty business or petty trade. MHA's work visa FAQ adds that people who come to execute a project or contract need an employment visa, not a business visa.

Paragraph 41 sets three conditions, and the MHA work visa FAQ repeats them in its answer to Q.1. The applicant must be "a person of assured financial standing". The visitor must not come "for full time employment in India". The visitor must also "comply with all other requirements like payment of tax liabilities".

Activity	Allowed on a business visa	Source
Full time employment with the Indian company	No	Annex III, para 41; MHA FAQ Q.1
Money lending, petty business or petty trade	No	Annex III, para 41
Executing a project or contract in India	No; an employment visa is needed	MHA FAQ Q.14
Running the Indian company's operations day to day	No, in our view; it is employment in substance	Annex III, para 41
Drawing a monthly salary from India	No, in our view	Annex III, para 41; compounding notification S.O. 3999(E)
Visiting protected, restricted or cantonment areas on an e Visa	No	indianvisaonline.gov.in e Visa page

The project rule catches many technical founders. MHA's FAQ, Q.14, says a foreigner who comes to execute projects or contracts must come on an employment visa. Q.15 and Q.16 add that a business visa used for project work cannot be extended or converted in India. A short expert visit to monitor progress is different. Annex III lists that as a business purpose.

What is the difference between a business visa and an e Business visa?

The e Business visa is applied for online and granted as an electronic travel authorisation. It runs 365 days from the grant, with multiple entries and stays of up to 180 days. The regular business visa comes from an Indian mission, runs up to five or ten years, and needs papers from an Indian company.

The e Visa page on indianvisaonline.gov.in sets the e Business terms. It states "Duration: One year (365 days) from the date of grant of ETA" and "Entries: Multiple". It also says "Continuous stay during each visit shall not exceed 180 days." A second e Business sub category runs only 30 days from the date of arrival. Its organisers upload the papers to the MHA site. The page also lists an e Conference visa of 30 days from arrival.

Point	Regular business visa	e Business visa
Where you apply	Indian mission or its visa centre, after the online form	indianvisaonline.gov.in only
Validity	Up to 5 years by default; 10 years for nationals of the USA, Canada, Japan, UK and South Africa	365 days from the grant of the ETA
Entries	Multiple	Multiple
Stay per visit	Up to 180 days	Up to 180 days
When to apply	Before travel; missions publish their own lead times	At least 4 days before arrival; up to 120 days before
Passport validity	At least 6 months (mission checklists)	At least 6 months at application, with 2 blank pages
Indian company documents	Invitation or sponsorship letter and its registration papers	As the online form asks
Employment	Not allowed	Not allowed
Extension or conversion	Limited; see the section below	Not extendable, not convertible
Biometrics	As the mission requires	Taken at immigration on arrival

The e Visa page states that an e Visa is not allowed for employment. It also states that an e Visa cannot be extended or converted. An e Visa holder enters through a designated airport or seaport and may leave from any immigration check post. The fee is country specific, and a 3 percent bank charge is added. It is non refundable whatever the outcome. Applicants carry a return or onward ticket and enough money for the stay.

Two other routes exist. The e Visa page lists an e Production Investment visa of six months with multiple entries. It also offers visa on arrival to nationals of Japan and South Korea. UAE nationals qualify only if they held an Indian e Visa or regular visa before. Founders from other countries choose between the two routes in the table.

Our rule of thumb is simple. A founder making one or two trips in the coming year can use the e Business visa. A founder or director who will travel to India for several years should hold the regular five or ten year visa. It saves a fresh online application every year.

How long can you stay in India on a business visa?

Each visit on a business visa or e Business visa can last up to 180 days. A regular business visa is valid up to five years, or ten years for some nationals. After the June 2026 amendment, a holder who wants more than 180 days in one calendar year needs FRRO registration, granted only in emergent circumstances.

Annex III, paragraph 42 sets validity by nationality. Nationals of the USA, Canada, Japan, the UK and South Africa get "10 years validity with multiple entry facility". The continuous stay "during each visit shall not exceed 180 days". Most other nationals get up to five years with multiple entries. For 30 listed countries, the Indian mission decides the duration, up to five years. Nationals of Bangladesh, China and Pakistan follow bilateral agreements and separate policy guidelines.

Applicant	Validity at issue	Stay limit	Source
Nationals of USA, Canada, Japan, UK, South Africa	Up to 10 years, multiple entry	180 days each visit	Annex III, para 42
Most other nationals	Up to 5 years, multiple entry	180 days each visit	Annex III, para 42; MHA FAQ Q.3
Nationals of the 30 countries listed in para 42	Decided by the Indian mission, up to 5 years	As endorsed	Annex III, para 42
Chinese nationals	Six months, multiple entry, with an invitation from a recognised Indian organisation; otherwise 60 days, single entry	Under 90 days a visit on the six month visa	Annex III, para 43
Nationals of Bangladesh and Pakistan	As the bilateral agreements and policy guidelines provide	As endorsed	Annex III, para 42
Any eligible national on e Business	365 days from ETA grant, multiple entry	180 days each visit	indianvisaonline.gov.in
30 day e Business sub category and e Conference visa	30 days from arrival, multiple entry	Within the 30 days	indianvisaonline.gov.in

MHA's FAQ, Q.3, adds that the mission prescribes a stay of at most six months for each visit. Paragraph 44 of Annex III then looks at the calendar year. A holder whose aggregate stay passes 180 days in a calendar year must register with the FRRO.

Two counts run side by side. Each visit is tested against 180 days. The total for each calendar year, 1 January to 31 December, is also tested against 180 days. We keep both counts in one travel log, and we count the arrival and departure days as days in India.

When must a business visa holder register with the FRRO?

A business visa holder who stays within 180 days a visit, and within 180 days in the calendar year, does not register. Rule 12(4)(b) of the Immigration and Foreigners Rules, 2025 gives that exemption. A holder who wants to stay longer must register before the 180 days run out. Since 1 Jun 2026, that registration is granted only in emergent circumstances.

Rule 12(1) of the Immigration and Foreigners Rules, 2025 (G.S.R. 596(E) of 1 Sep 2025) sets the general duty. A foreigner registers within 14 days of arrival. The application goes on the Indian Visa Su Swagatam app, or in Form I on indianfrro.gov.in. The provisos then deal with short visas. They also cover longer visas with a 180 day stay condition.

The Immigration and Foreigners (Amendment) Rules, 2026, G.S.R. 424(E) of 1 Jun 2026, changed both provisos. They came into force on publication in the Gazette.

Visa held	Rule 12 position before 1 Jun 2026	Rule 12 position from 1 Jun 2026
Visa valid 180 days or less, holder wants to stay longer (third proviso)	Register within 14 days after the 180th day	Register any time before the 180 days expire
Visa valid more than 180 days and marked "each stay shall not exceed 180 days", holder wants more than 180 days on one visit or in a calendar year (fourth proviso)	Register any time before the 180 days expire	Same timing, "but such registration shall be granted only in emergent circumstances"
Visa of 180 days or less, holder leaves in time	Exempt under rule 12(4)(a)	Exempt under rule 12(4)(a)
Visa valid more than 180 days with that mark, holder stays within 180 days a visit and in the calendar year	Exempt under rule 12(4)(b)	Exempt under rule 12(4)(b)
OCI cardholder, child below 12	Exempt under rule 12(4)(c) and (d)	Exempt

A regular five or ten year business visa carries the 180 day stay condition. The 365 day e Business visa does too. So the fourth proviso applies to both. In practice, a business visitor should plan for no more than 180 days in India in any calendar year. "Emergent circumstances" is not defined in the Rules. We read it as illness, a family emergency or a travel disruption, not a business need.

The e Visa page on indianvisaonline.gov.in still says to register "within two weeks after the expiry of 180 days". That text predates G.S.R. 424(E). Where the two differ, we follow the amended Rule 12.

Registration brings other duties. Rule 15 requires a registered foreigner to report address changes and absences. A hotel or company guest house that houses a foreigner is a keeper of accommodation under section 8 of the Act. Rule 17(5) makes the keeper send the arrival details within 24 hours, in Form III on the portal or app. Many people still call this filing Form C, its name under the old rules.

What documents does a business visa application need?

A business visa file proves three things: who the visitor is, the business purpose, and the visitor's financial standing. Missions ask for an invitation or sponsorship letter from the Indian company and its registration papers. They also want a letter from the visitor's own employer. MHA's FAQ, Q.4, lists the core set.

The Consulate General of India in Dubai asks for "An invitation letter from the company/ organization based in India inviting the applicant". It also asks for the "Trade License, Company registration certificate copy of the Indian Company". The Oslo mission adds a dispatch letter from the applicant's company and a travel itinerary.

Document	Who provides it	Source
Online visa application form with photograph	Visitor	indianvisaonline.gov.in; Embassy of India, Oslo
Passport valid at least six months, with blank pages	Visitor	Embassy of India, Oslo; e Visa page
Photograph 2 inch by 2 inch (51 mm by 51 mm), white background	Visitor	Consulate General, Dubai; Embassy of India, Oslo and Beijing
Letter from the visitor's own company confirming employment and purpose	Foreign employer	Consulate General, Dubai; Embassy of India, Oslo
Proof of financial standing and expertise in the field of business	Visitor	MHA FAQ Q.4; Consulate General, Dubai
Invitation or sponsorship letter from the Indian company	Indian company	Consulate General, Dubai; Embassy of India, Oslo and Beijing
Certificate of incorporation or registration of the Indian company	Indian company	MHA FAQ Q.4; Consulate General, Dubai
Proof of residence, where applying outside the country of nationality	Visitor	Consulate General, Dubai; MHA FAQ Q.1
Travel itinerary	Visitor	Embassy of India, Oslo
Local extras, such as bank evidence of a set minimum balance	Visitor	Embassy of India, Oslo (NOK 1,50,000 bank guarantee) and Beijing (RMB 1,00,000 balance)

MHA's FAQ, Q.1, adds a residence rule. A business visa is issued from the country of origin or habitual domicile. A domicile counts only where the person has lived there more than two years. A US founder living in Dubai for a year applies in the US. A founder living in Dubai for three years can apply in Dubai.

Before incorporation, there is no Indian company to invite the founder. Annex III still lists "explore possibilities to set up" a venture as a purpose. We then use letters from the founder's own company and meeting confirmations from the Indian bank and advisers. Our guide to setting up a Private Limited subsidiary in India covers the incorporation steps that follow.

Timing depends on the mission. The visa processing page says a mission needs at least three working days, excluding special cases. The Dubai post quotes at least four working days for non UAE passport holders who have lived in the UAE for under two years. It asks nationals of Afghanistan, Iraq, Nigeria, Pakistan and Somalia, and foreigners of Pakistan origin, to apply well before 60 days. Annex III, paragraph 42 also lets a mission issue a business visa within 48 hours on an urgent request.

Can a business visa holder be paid by the Indian company?

Not as salary. A business visa excludes full time employment, and taking up employment on any visa other than an employment visa compounds at INR 3,00,000. The Indian company can reimburse business travel costs. It can pay a non executive director sitting fees for board meetings, with tax deducted at source.

Annex III does not list pay from India as a business visa purpose, except remuneration for cultural events and contracted sports. A monthly fixed payment for running the Indian company looks like employment. The FRRO decides that on substance, not on the label in the contract.

Payment from the Indian company to a foreign business visitor	Our view on the visa	Tax point
Reimbursement of airfare, hotel and local travel at actual cost, with bills	Compatible with a business visa	Not income where it is a cost reimbursement backed by bills, on our reading
Sitting fees for attending board or committee meetings	Compatible; board meetings are a listed purpose	Tax deducted at source under section 393(2), serial 17, at the rates in force
Commission to a non executive director, approved under the Companies Act	Usually compatible, if the director is not working full time	As above
Monthly salary as managing director or CEO	Not compatible; needs an employment visa	Salary under section 9(3)(a); TDS under section 392
Consultancy fee for running Indian operations	Not compatible in substance	Taxed in India; TDS under section 393(2)
Salary paid abroad by the foreign parent for a short visit	Compatible, if the work is a listed business purpose	May be exempt under Schedule IV, serial 3, or the treaty

Sitting fees are paid under section 197(5) of the Companies Act, 2013, within the per meeting limit in the rules. A non resident director's fee is taxable in India. Article 17 of the India US DTAA says directors' fees "may be taxed" in the state where the company resides. We check the directors' fees article of each treaty before every first payment.

Tax is deducted at source under section 393(2), serial 17 of the Income Tax Act, 2025, which replaced section 195 of the 1961 Act. Serial 17 sets no fixed rate. Its rate column says "Rates in force". Part II of the First Schedule to the Finance Act, 2026 sets 30 percent on the other income of a non resident individual. Health and education cess of 4 percent goes on top, and surcharge starts only above INR 50 lakh.

Our guide on TDS on payments to non residents gives the other rates. The remittance then needs Form 145 (old Form 15CA), and Form 146 (old Form 15CB) where the rules require it. Our Form 15CA and 15CB guide covers which form applies.

When does a foreign director need an employment visa instead?

A foreign director needs an employment visa once they work full time for the Indian company or draw a salary from it. A non executive or nominee director who flies in for board meetings stays on a business visa. A managing director or whole time director living in India needs an employment visa.

Part I of Schedule V to the Companies Act, 2013 reaches the same result for managerial roles. Explanation II says a non resident must enter India only on a proper employment visa from the Indian mission. Condition (e) also expects such a person to be resident in India. Explanation I treats a person as resident after 12 months' continuous stay before appointment.

Founder or director profile	What they do in India	Visa we advise
Founder exploring India before incorporation	Meetings with banks, landlords, advisers and hires	Business visa or e Business visa
Nominee director of the foreign parent	Attends four board meetings a year, in person or by video	Business visa or e Business visa
Founder director who visits for sales, hiring and reviews	Short trips; paid by the foreign company	Business visa
Founder who relocates to run the Indian company	Lives in India, manages staff, signs daily	Employment visa
Managing director or whole time director drawing pay from India	Full time role	Employment visa, plus Schedule V checks
Parent engineer installing equipment for the subsidiary	Project execution	Employment visa (MHA FAQ Q.14)
OCI cardholder founder	Any of the above	No visa; OCI covers it

The employment visa has its own salary floor of INR 16.25 lakh a year under Annex III, paragraph 28. Our employment visa guide covers that floor, FRRO registration and the documents the Indian company signs.

Section 149(3) of the Companies Act needs one director who stays in India for 182 days or more in the financial year. A director on a business visa will find this hard after June 2026. The 180 day calendar year limit leaves little room. The financial year runs April to March, so it spans two calendar years. The arithmetic works only with careful planning, so most foreign owned companies appoint an Indian resident director instead.

Video conferencing reduces the trips needed. Section 173(2) of the Companies Act lets directors attend board meetings by video conferencing or other audio visual means. A nominee director who joins most meetings by video keeps the India day count low.

Can a business visa be extended or converted in India?

Rarely. MHA's FAQ, Q.12, says a business visa cannot be converted, or extended beyond five years from the date of issue. Conversion is possible only in three cases, with MHA approval. An e Business visa cannot be extended or converted at all. A founder who needs an employment visa applies from abroad.

The three conversion cases in Q.12 are marriage to an Indian national, Persons of Indian Origin, and a medical emergency. Q.3 of the FAQ allows a business visa issued for less than five years to be extended up to five years in total. That extension depends on the venture showing gross sales or turnover of at least INR 1 crore a year within two years. MHA approves the first extension, and the State Government or FRRO approves later yearly extensions.

Request made in India	Position	Source
Convert a business visa to an employment visa	Not allowed; leave India and apply at the mission	MHA FAQ Q.12 and Q.16
Convert a business visa on marriage to an Indian national, PIO status or a medical emergency	Possible with MHA's prior approval	MHA FAQ Q.12
Extend a business visa issued for under five years	Possible up to five years in total; turnover test of INR 1 crore a year within two years	MHA FAQ Q.3
Extend a business visa used for project execution	Not allowed	MHA FAQ Q.15
Extend or convert an e Business visa	Not allowed	indianvisaonline.gov.in
Stay more than 180 days in a calendar year on a business visa	Registration granted only in emergent circumstances	Rule 12(1), fourth proviso, as amended on 1 Jun 2026

The FAQ is undated on the MHA site and cites instructions from 2009. Annex III, paragraphs 40 to 44 do not repeat the turnover test. We treat the test as MHA's published position, and we check the current FRRO service list on indianfrro.gov.in before advising on any extension.

Can long business visits create tax residency or PE?

Yes. India tests an individual's tax residence on days, not on visa type. Section 6(2)(a) of the Income Tax Act, 2025 makes a founder resident after 182 days in India in a tax year. Days spent working for the foreign company in India can also create a business connection or a permanent establishment (PE) for that company.

The visa limit and the tax test use different years. The visa looks at the calendar year. The tax year runs from 1 April to 31 March. So a founder can stay within 180 days in each calendar year and still pass 182 days in one tax year. The worked example below shows the arithmetic.

Section 6(2) has two tests. An individual is resident if in India for 182 days or more in the tax year. The second test is 60 days in the tax year plus 365 days in the four preceding tax years. Section 6(4) and 6(5) relax the 60 day test for Indian citizens and persons of Indian origin who visit. A foreign founder of non Indian origin gets no relaxation.

Most visiting founders who turn resident are "not ordinarily resident" under section 6(13) in their early years. Section 5(1)(c) then taxes their foreign income only if it comes from a business controlled in India. A profession set up in India counts too. A founder who runs the foreign company from India risks pulling that foreign income into Indian tax.

The company faces separate tests. Section 9(2)(c) deems income through a business connection in India to accrue in India. Section 9(9)(b) covers a person who habitually concludes contracts, or plays the principal role leading to them, for a non resident. Section 6(10) makes a foreign company resident if its place of effective management is in India in that tax year.

Risk	Test	Income Tax Act, 2025	Income Tax Act, 1961	What a visiting founder should watch
Individual residence	182 days, or 60 days plus 365 days in four prior years	Section 6(2)	Section 6(1)	Days across the April to March tax year
Not ordinarily resident	Non resident in 9 of 10 prior years, or 729 days or less in 7 prior years	Section 6(13)	Section 6(6)	Usually protects foreign income in early years
Scope of income for a not ordinarily resident person	Foreign income taxed only if from a business controlled in India	Section 5(1)(c)	Section 5(1)(c) proviso	Running the foreign company from India
Salary for work done in India	Deemed to accrue in India	Section 9(3)(a)	Section 9(1)(ii)	Days worked in India on foreign payroll
Short stay exemption for foreign employer pay	90 days or less, employer does no business in India, pay not charged to India	Section 11, Schedule IV serial 3	Section 10(6)(vi)	Fails once the cost is recharged to India
Business connection of the foreign company	Income through a business connection; habitual contract conclusion	Sections 9(2)(c) and 9(9)(b)	Section 9(1)(i), Explanation 2	Founder signing customer deals in India
Place of effective management of the foreign company	Key management and commercial decisions made in India	Section 6(10)	Section 6(3)	Board decisions taken in India
TDS on payments to the founder as a non resident	Withholding on sums chargeable in India	Section 393(2), serial 17	Section 195	Sitting fees, consultancy
Remittance forms	Information and accountant certificate	Forms 145 and 146	Forms 15CA and 15CB	Every payment abroad
Treaty claim	Information for a treaty claim	Form 41 under section 159(8)	Form 10F	Tax residency certificate needed

Treaties set their own PE tests, and they differ. The India US DTAA creates a service PE for services to a related enterprise with no minimum day count, under Article 5(2)(l)(ii). The India UK DTAA sets 30 days for services to an associated enterprise. Our guides on the India US DTAA and on how to avoid permanent establishment risk explain the counts.

Pay from a foreign employer for days worked in India is Indian income under section 9(3)(a). The dependent personal services article of the treaty can exempt it. Article 16 of the India US DTAA exempts it where three tests hold. The stay is within 183 days, the employer is not Indian resident, and no Indian PE bears the cost.

What are the penalties for misusing a business visa?

Section 23 of the Immigration and Foreigners Act, 2025 punishes breach of visa conditions. The maximum is three years' imprisonment, a fine of INR 3 lakh, or both. Under the compounding notification S.O. 3999(E) of 1 Sep 2025, employment on a non employment visa compounds at INR 3,00,000. Other unauthorised activity compounds at INR 50,000.

Section 24 makes an abettor liable to the punishment for the offence abetted. An Indian company that knowingly puts a business visitor on its payroll faces the same exposure. Section 25 lets the Central Government compound offences under sections 21, 23 and 24.

Offence	Section	Compounding amount (INR)
Taking up employment on a visa other than an employment visa	23	3,00,000
Unauthorised activity on a non tourist visa, including a business visa	23	50,000
Other breach of visa conditions	23	50,000
Overstay of 1 to 30 days	23	10,000
Overstay of 31 to 90 days	23	20,000
Overstay of 91 to 180 days	23	50,000
Overstay of 181 days to one year	23	1,00,000
Overstay above one year	23	2,00,000 plus 50,000 a year, capped at 3,00,000
Non registration, 1 to 30 days	23	10,000
Accommodation keeper not reporting a foreigner	23	50,000
Abetment of any of the above	24	Same as the offence abetted

The FRRO compounds these amounts. An immigration officer at the port can compound overstay or non registration up to 30 days. The figures come from MHA's compounding notification. A record of a breach also follows the visitor into later visa and extension files.

What changed in 2026

The business visa categories did not change in 2026. Rule 12 registration did, on 1 Jun 2026, and the income tax forms around a visiting founder changed on 1 Apr 2026. The legal base itself changed on 1 Sep 2025.

Date	Old position	New position	Instrument
1 Sep 2025	Foreigners Act, 1946; Registration of Foreigners Act, 1939; Passport (Entry into India) Act, 1920	Immigration and Foreigners Act, 2025 in force	S.O. 3981(E) of 31 Aug 2025
1 Sep 2025	Registration of Foreigners Rules, 1992	Immigration and Foreigners Rules, 2025, rule 12 registration	G.S.R. 596(E) of 1 Sep 2025
1 Sep 2025	Penalties under the repealed Acts	Compounding table; INR 3,00,000 for employment on the wrong visa	S.O. 3999(E) of 1 Sep 2025
1 Apr 2026	Section 6(1), 9(1), 195 and Forms 15CA, 15CB, 10F under the Income Tax Act, 1961	Sections 6(2), 9(2), 393(2) and Forms 145, 146, 41 under the Income Tax Act, 2025	Act 30 of 2025; Income Tax Rules, 2026 (G.S.R. 198(E) of 20 Mar 2026)
1 Jun 2026	Short visa holder staying past 180 days registers within 14 days after the 180th day	Registers before the 180 days expire	G.S.R. 424(E) of 1 Jun 2026, rule 12(1) third proviso
1 Jun 2026	Multi year visa holder may register before 180 days to stay longer	Registration granted only in emergent circumstances	G.S.R. 424(E) of 1 Jun 2026, rule 12(1) fourth proviso
1 Jun 2026	Rule 21(5) as first notified, on orders against premises frequented by foreigners	Sub rule (5) substituted: appeal to the Commissioner, Bureau of Immigration within 30 days through the online portal; new sub rule (6) asks for a reasoned order, ordinarily within 60 days	G.S.R. 424(E) of 1 Jun 2026, rule 21

The June change matters most for founders. Before it, a business visa holder with a reason to stay could register and stay past 180 days. Now that route is closed except in an emergency. A founder who needs to be in India for most of the year needs an employment visa, or OCI status where eligible.

Worked example

Scenario 1: a US founder who stays within the visa limit but turns tax resident. A US citizen founds a Delaware company with an Indian Private Limited subsidiary in Bengaluru. She holds a ten year business visa. She has never spent time in India before 2026, and is paid only by the US company.

Step 1. Count days for the visa, by calendar year. Arrival and departure days both count.

Trip	Dates	Days in India
Trip 1	15 Jan 2026 to 28 Feb 2026	45
Trip 2	1 Apr 2026 to 30 Jun 2026	91
Trip 3	1 Oct 2026 to 13 Nov 2026	44
Calendar year 2026 total		180
Trip 4	10 Jan 2027 to 31 Mar 2027	81

Each trip is under 180 days. The 2026 total is exactly 180 days, so rule 12(4)(b) still exempts her from registration. One more day in India in 2026 would need FRRO registration, granted only in emergent circumstances.

Step 2. Count days for tax, by tax year 2026-27. The tax year runs 1 Apr 2026 to 31 Mar 2027. Trips 2, 3 and 4 fall inside it: 91 + 44 + 81 = 216 days. That passes 182 days, so she is resident under section 6(2)(a).

Step 3. Test not ordinarily resident status. She was non resident in all ten preceding tax years. So she is not ordinarily resident under section 6(13). Her US salary for days worked in the US stays outside Indian tax, unless it derives from a business controlled in India.

Step 4. Test her pay for days worked in India. Her US salary is USD 180,000 a year for 260 working days, or about USD 692 a day. Assume 150 of her 216 India days were working days. Pay for those days is 150 x USD 692.31, or about USD 103,846. Section 9(3)(a) treats it as Indian income.

The Schedule IV, serial 3 exemption fails, because she stayed more than 90 days. Article 16 of the India US DTAA also fails, because she was in India more than 183 days. She files an Indian return for tax year 2026-27 and pays advance tax under section 408.

Step 5. Check the US company. She signed two customer contracts for the US company while in Bengaluru. That is a business connection risk under section 9(9)(b) and a PE risk under the treaty. The fix is to sign US company contracts outside India and minute where key decisions are taken.

Scenario 2: a nominee director paid sitting fees. A US resident nominee director attends four board meetings of the Indian subsidiary in person. The Indian company pays INR 50,000 a meeting.

Line	INR
Sitting fees, 4 meetings at 50,000	2,00,000
TDS at the rate in force, 30%, under section 393(2), serial 17	60,000
Health and education cess at 4% of the TDS	2,400
Total tax deducted	62,400
Net paid to the director	1,37,600

The 30 percent is the Finance Act, 2026 rate in force for other income of a non resident individual. No surcharge applies, because the sum is below INR 50 lakh. Article 17 of the India US DTAA leaves India free to tax directors' fees, so the director claims a foreign tax credit in the US. The Indian company files Form 144 (old Form 27Q) and issues Form 131 (old Form 16A). The four business trips raise no visa issue, because board meetings are a listed purpose.

Scenario 3: a founder put on Indian payroll on a business visa. A Singapore founder enters on a business visa on 1 Jun 2026. In September, the Indian company appoints him managing director at INR 2,50,000 a month.

Exposure	INR
Founder: employment on a non employment visa, compounding under section 23	3,00,000
Indian company: abetment under section 24, same amount	3,00,000
Total compounding exposure	6,00,000
Annual salary at 2,50,000 a month	30,00,000
Employment visa salary floor, Annex III para 28	16,25,000

The salary is well above the employment visa floor, so the right visa was available. The fix is to stop the salary, and for the founder to apply for an employment visa from Singapore. The board then checks Schedule V condition (e), because he has not lived in India for 12 months.

Common mistakes

1. Putting a founder on payroll while on a business visa. Annex III, paragraph 41 excludes full time employment. The compounding amount is INR 3,00,000. Fix: get the employment visa before the first salary.
2. Planning a long stay on a business visa after June 2026. Registration beyond 180 days is now granted only in emergent circumstances. Fix: keep each calendar year within 180 days, or move to an employment visa.
3. Counting only the length of each trip. The 180 day test applies per visit and per calendar year. Fix: keep one travel log with both counts.
4. Assuming the visa limit keeps the founder non resident for tax. The visa uses the calendar year and tax uses April to March. Fix: count days by tax year too, and plan for section 6(2).
5. Using a business visa for installation or project work. MHA's FAQ, Q.14, requires an employment visa for executing projects. Fix: send engineers for project work on employment visas.
6. Expecting to convert the visa in India. Business visas convert only on marriage, PIO status or a medical emergency, with MHA approval. Fix: apply for the employment visa from abroad.
7. Relying on the e Visa page's two week registration text. G.S.R. 424(E) changed the timing on 1 Jun 2026. Fix: follow rule 12 as amended.
8. Paying sitting fees gross. Sitting fees to a non resident director are taxable in India. Fix: deduct tax under section 393(2), serial 17 and file Form 144.
9. Signing the foreign company's contracts in India. This can create a business connection or PE. Fix: sign abroad and minute where decisions are taken.
10. Applying from a country of short residence. MHA's FAQ, Q.1, needs more than two years' residence for a non national to apply there. Fix: apply in the country of nationality, or of domicile over two years.

For a review of a founder's travel plan, visa and tax position, our foreign subsidiary team can help through the contact page.

Checklist

1. List what the founder or director will do in India, and match each item to Annex III, paragraph 40.
2. Move anyone who will work full time, run operations or execute a project to the employment visa route.
3. Choose the e Business visa for one year of trips, or the regular visa for multi year travel.
4. Collect the invitation letter, the Indian company's incorporation certificate and the foreign employer's letter.
5. Apply from the country of nationality, or from a country of domicile of more than two years.
6. Set up a travel log that counts days per visit, per calendar year and per tax year.
7. Cap each visit and each calendar year at 180 days, unless an emergency arises.
8. Approve any reimbursements against bills, and keep salary off the Indian payroll.
9. Deduct tax under section 393(2), serial 17 on sitting fees, and file Form 144 and Form 145.
10. Test residence under section 6(2) every tax year, and note not ordinarily resident status.
11. Sign the foreign company's contracts outside India, and minute where key decisions are made.
12. Count parent staff days in India against the treaty's service PE limit.
13. Apply for an employment visa from abroad before any change to a salaried role.

Frequently Asked Questions

Can a foreigner attend a board meeting in India on an e Business visa?+

Yes, on our reading. Annex III, paragraph 40 lists board meetings and general meetings as business visa purposes, and the e Business visa is the online route for business visits. The e Business visa is valid 365 days from the grant of the ETA, with multiple entries. Each visit can last up to 180 days. It does not allow employment.

How many days can I stay in India on a 10 year business visa?+

Up to 180 days on each visit, under Annex III, paragraph 42. After the June 2026 amendment to rule 12(1), staying more than 180 days in a calendar year needs FRRO registration. That registration is granted only in emergent circumstances. Plan for no more than 180 days in India in any calendar year.

Who gets a 10 year business visa to India?+

Annex III, paragraph 42 gives a ten year multiple entry business visa to nationals of the USA, Canada, Japan, the UK and South Africa. Most other nationals get up to five years. For 30 listed countries, the Indian mission decides the duration. Each visit is capped at 180 days in all cases.

Can I set up a company in India on a business visa?+

Yes. Annex III, paragraph 40 lists establishing an industrial or business venture, and exploring the possibility of one, as business visa purposes. A founder can meet banks, advisers and landlords, sign incorporation papers and recruit the first staff. Running the company full time after incorporation needs an employment visa.

Can I hire employees in India while on a business visa?+

Yes. Recruitment of manpower is a listed purpose in Annex III, paragraph 40. A founder can interview candidates and sign offer letters on behalf of the Indian company. The founder cannot become one of its full time employees on that visa. That needs an employment visa sponsored by the Indian company.

Can a business visa holder receive a salary from an Indian company?+

No. Annex III, paragraph 41 excludes full time employment. Under S.O. 3999(E) of 1 Sep 2025, employment on a non employment visa compounds at INR 3,00,000. The company can face the same amount for abetment under section 24. Travel cost reimbursements and sitting fees for board meetings are a different matter.

Are sitting fees to a foreign director taxable in India?+

Yes. Directors' fees from an Indian company are taxable in India under domestic law, and treaties such as Article 17 of the India US DTAA keep that right. The Indian company deducts tax under section 393(2), serial 17 of the Income Tax Act, 2025. It then files Form 144 and issues Form 131 to the director.

Is FRRO registration required for a business visa holder?+

Only for a stay beyond 180 days, on one visit or in the calendar year. Rule 12(4)(b) of the Immigration and Foreigners Rules, 2025 exempts holders who stay within that limit. Since G.S.R. 424(E) of 1 Jun 2026, registration to stay longer is granted only in emergent circumstances.

Can I convert a business visa to an employment visa without leaving India?+

No. MHA's work visa FAQ, Q.12, says a business visa is non convertible, except on marriage to an Indian national, PIO status or a medical emergency, with MHA approval. Q.16 refuses conversion for project workers. The founder leaves India and applies for an employment visa at the Indian mission.

Can an e Business visa be extended?+

No. The e Visa page on indianvisaonline.gov.in states that an e Visa is non extendable and non convertible. A founder who needs more time applies for a fresh e Business visa from abroad, or for a regular business visa through the Indian mission. Stays remain capped at 180 days a visit.

How early should I apply for an e Business visa?+

At least four days before arrival, according to the e Visa page on indianvisaonline.gov.in. The application window opens 120 days before the planned arrival. The passport needs six months' validity at application and two blank pages. The fee depends on nationality and is not refunded if the visa is refused.

Does a business visa holder pay income tax in India?+

Possibly. MHA's FAQ expects business visa holders to pay any tax due. Pay for days worked in India is Indian income under section 9(3)(a) of the Income Tax Act, 2025. Schedule IV, serial 3 exempts it for stays of 90 days or less, if the employer does no business in India.

Can a foreign founder become tax resident in India on a business visa?+

Yes. Section 6(2)(a) of the Income Tax Act, 2025 makes an individual resident after 182 days in a tax year, whatever the visa. The visa caps days by calendar year, while tax counts April to March. Two calendar years of 180 days can produce more than 182 days in one tax year.

Can a visiting founder create a PE for the foreign company?+

Yes. A founder who habitually concludes contracts in India for the foreign company creates a business connection under section 9(9)(b). Treaties add service PE rules. The India US DTAA sets no minimum days for services to a related enterprise, and the India UK DTAA sets 30 days for an associated enterprise.

Can the spouse of a business visa holder travel on a dependent visa?+

Yes. MHA's work visa FAQ says family members and dependants of a business visa holder may get an X visa, subject to the usual security checks. It runs for the same period as the principal's visa, or shorter. A job taken on an X visa would be employment on a visa other than an employment visa.

Can an OCI cardholder founder skip the business visa?+

Yes. An Overseas Citizen of India cardholder holds a multiple entry, multi purpose, lifelong visa. Rule 12(4)(d) of the Immigration and Foreigners Rules, 2025 exempts OCI cardholders from registration. Tax residence still follows the day count in section 6 of the Income Tax Act, 2025.

Sources

• Ministry of Home Affairs, Annex III, Details of Visas granted by India, 20 Aug 2020, https://www.mha.gov.in/sites/default/files/2022-09/AnnexIIIDetailsofVisas20082020%5B1%5D.pdf
• Ministry of Home Affairs, FAQs relating to work related visas issued by India (undated), https://www.mha.gov.in/sites/default/files/2022-08/work_visa_faq[1].pdf
• Ministry of Home Affairs, The Immigration and Foreigners Act, 2025 (Act 13 of 2025), https://www.mha.gov.in/sites/default/files/2025-09/Immigration_and_Foreigners_Act_2025_16092025.pdf
• Ministry of Home Affairs, S.O. 3981(E) of 31 Aug 2025, commencement of the Immigration and Foreigners Act, 2025, https://www.mha.gov.in/sites/default/files/2025-09/Notification_on_commencement_date_of_Immigration_and_Foreigners_Act_2025_16092025.pdf
• Ministry of Home Affairs, Immigration and Foreigners Rules, 2025, G.S.R. 596(E) of 1 Sep 2025, https://www.mha.gov.in/sites/default/files/2025-09/Immigration_and_Foreigners_Rules_2025_16092025.pdf
• Ministry of Home Affairs, Immigration and Foreigners (Amendment) Rules, 2026, G.S.R. 424(E) of 1 Jun 2026, Gazette of India, https://egazette.gov.in/WriteReadData/2026/273046.pdf
• Ministry of Home Affairs, S.O. 3999(E) of 1 Sep 2025, compounding of offences under the Immigration and Foreigners Act, 2025, https://www.mha.gov.in/sites/default/files/2026-01/7._Notification_regarding_compounding_of_certain_offences_under_the_Immigration_and_Foreigners_Act%2C_2025_20012026.pdf
• Ministry of Home Affairs, Foreigners Division, Acts, Rules and Regulations (last updated 23 Feb 2026), https://www.mha.gov.in/en/divisionofmha/foreigners-division/acts-rules-and-regulations-pertaining-foreigners-division
• Government of India, e Visa page, read 2 Oct 2026, https://indianvisaonline.gov.in/evisa/tvoa.html
• Government of India, Visa processing time, https://indianvisaonline.gov.in/visa/visa-processing.html
• Bureau of Immigration, e FRRO portal, https://indianfrro.gov.in/
• Embassy of India, Oslo, Business visa, https://www.indianembassyoslo.gov.in/page/business-visa/
• Consulate General of India, Dubai, Business visa, https://www.cgidubai.gov.in/page/business-visa/
• Embassy of India, Beijing, Business visa and sports visa, https://www.eoibeijing.gov.in/page/business-visa-sports-visa/
• Income Tax Department, Income Tax Act, 2025, section 5, https://www.incometaxindia.gov.in/w/section-5-1
• Income Tax Department, Income Tax Act, 2025, section 6, https://www.incometaxindia.gov.in/w/section-6-1
• Income Tax Department, Income Tax Act, 2025, section 9, https://www.incometaxindia.gov.in/w/section-9-1
• Income Tax Department, Income Tax Act, 2025, Schedule IV, https://www.incometaxindia.gov.in/w/schedule-iv-3
• Income Tax Department, Income Tax Act, 2025, section 393, https://www.incometaxindia.gov.in/w/section-393-5
• Income Tax Department, Finance Act, 2026, First Schedule, Part II, https://www.incometaxindia.gov.in/w/first-schedule-104
• Income Tax Department, Companies Act, 2013, Schedule V, https://www.incometaxindia.gov.in/w/schedule-v
• Income Tax Department, India USA comprehensive agreement (DTAA), Articles 16 and 17, https://www.incometaxindia.gov.in/w/usa-comprehensive-agreements-1
• Income Tax Department, FAQs and guidance notes on forms as per Income Tax Rules, 2026, https://www.incometaxindia.gov.in/faqs-and-guidance-notes-on-forms-as-per-income-tax-rules-2026