Employment Visa India 2026 for Foreign Employees and Directors

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

A foreign national who will work for an Indian company needs an employment visa before arrival. The Ministry of Home Affairs (MHA) sets a gross salary floor above INR 16.25 lakh a year, with a short list of exemptions. The visa is issued for up to two years at a time (three in IT) and extends to five years in India. Rule 12 of the Immigration and Foreigners Rules, 2025 then requires FRRO registration within 14 days of arrival for a visa longer than 180 days.

This page is for the foreign parent, the founder and the Indian finance lead who hire or second staff into an Indian Private Limited company. It covers eligibility, the salary floor, director cases, documents, validity, FRRO registration, tax, PF, penalties and a worked example.

Who needs an employment visa in India?

Any foreign national who takes up a job with an organisation in India needs an employment visa. That covers locally hired expats, secondees from a foreign parent and foreign managing directors. An e Visa, tourist visa or business visa does not allow employment. Overseas Citizen of India (OCI) cardholders are the main exception.

The law changed on 1 Sep 2025. The Immigration and Foreigners Act, 2025 (Act 13 of 2025) came into force that day under S.O. 3981(E) of 31 Aug 2025. Section 36 repealed four older laws. They are the Passport (Entry into India) Act, 1920, the Registration of Foreigners Act, 1939, the Foreigners Act, 1946 and the Immigration (Carriers' Liability) Act, 2000.

Section 3 of the 2025 Act bars any foreigner from entering India without a valid passport and a valid visa. Section 2 defines a visa as an authorisation to enter, transit, stay in or exit India. The type of visa sets what the holder may do.

The visa categories themselves sit in MHA's Visa Manual, 2019. MHA publishes a summary as Annex III, "Details of Visas granted by India", dated 20 Aug 2020. We quote Annex III and the mission pages that apply it.

Person	Visa or status needed to work for an Indian company	Main source
Foreign national hired by the Indian company	Employment visa (E)	Annex III, para 28
Secondee from a foreign parent to its Indian subsidiary	Employment visa, intra company transferee sub category (E-2)	Mission pages, for example Embassy of India, Oslo
Foreign managing director or whole time director drawing pay	Employment visa	Companies Act, 2013, Schedule V, Explanation II
Foreign non executive director attending board meetings	Business visa or e Business visa	Annex III, para 40
Spouse of an employment visa holder	Dependent visa (X); no right to work	Annex III, para 33
OCI cardholder	No visa needed; lifelong multi purpose visa	MEA OCI scheme page
Visitor for meetings, sales or site visits	Business visa or e Business visa; no employment	Annex III, paras 40 and 41

The MEA OCI scheme page says an OCI cardholder holds a multiple entry, multi purpose, lifelong visa. The same page exempts OCI cardholders from FRRO registration for any length of stay. Paragraph 9(6) of the Immigration and Foreigners Order, 2025 also keeps OCI cardholders outside the sector limits on employment.

What is the minimum salary for an employment visa in India?

The foreign employee must draw a gross salary above INR 16.25 lakh a year. Annex III, paragraph 28 states this for every sector. The floor does not apply to a short list of roles, and faculty at named central institutions need only INR 9.10 lakh. The contract must show the figure.

The salary condition reads: "The foreign national being sponsored for an employment visa in any sector should draw a gross salary in excess of Rs. 16.25 lakhs per annum." The Embassy of India in Oslo asks for a contract that states "annual income of more than INR 16.25 lakh per annum". The Embassy of India in Beijing asks for the same figure.

Older pages still quote USD 25,000. MHA's own work visa FAQ says "a salary in excess of US$ 25,000 per annum". Annex III of 20 Aug 2020 uses the rupee figure, so we work to INR 16.25 lakh. The rupee floor avoids exchange rate swings in either direction.

Case	Salary floor a year	Source
Any sector, general rule	Gross salary above INR 16,25,000	Annex III, para 28
Teaching faculty (Assistant Professor and above) at IITs, Central Universities, NITs, IIMs and IISERs	INR 9,10,000	Annex III, para 28
Ethnic cooks employed by foreign missions in India (not cooks in a commercial venture)	No floor	Annex III, para 28
Teachers of languages other than English, and translators (not teachers of other subjects in a foreign language)	No floor	Annex III, para 28
Staff of foreign embassies and high commissions in India	No floor	Annex III, para 28
Honorary work without salary for an NGO registered in India	No floor	Annex III, para 28
Faculty of South Asian University and Nalanda University	No floor	Annex III, para 28
Circus artists	No floor	Annex III, para 28

The cook exemption is narrow. A restaurant or hotel that hires a foreign chef must meet the full floor.

Three points come up on almost every file we prepare:

1. Gross means gross. We count fixed pay, allowances and employer paid benefits written into the contract. We leave out one off joining bonuses that the contract does not promise every year.
2. Who pays is not spelt out. Annex III, MHA's FAQ and the Oslo and Beijing pages do not say who must pay the qualifying salary. MHA's FAQ does say that a foreign company with no project office, subsidiary, joint venture or branch in India cannot sponsor an employment visa. We write the Indian company's pay obligation into the contract. We also read the checklist of the mission where the employee will apply.
3. The floor is a minimum, not a test of skill. Annex III also says the visa is for "highly skilled and/or qualified professional[s]". MHA's FAQ adds that it is not granted for routine, ordinary, secretarial or clerical jobs, or where qualified Indians are available.

Which jobs qualify for an employment visa?

An employment visa is for a highly skilled or qualified professional engaged by a company, firm or organisation registered in India. Missions list the qualifying purposes and split the visa into sub categories. E-1 covers ordinary employment, E-2 intra company transferees, E-3 NGOs and E-4 power and steel projects.

The Embassy of India in Beijing lists ten purposes. They start with employment in a company registered in India. They also cover engineers who install equipment, technical support staff, contract consultants, artists, coaches and sportspersons. Self employed professionals, language teachers, interpreters and specialist chefs complete the list.

Sub category	Who it covers	Source
E-1	All cases of employment, other than intra company transferees and NGOs	Embassy of India, Oslo
E-2	Intra company transferees	Embassy of India, Oslo
E-3	Employment in NGOs	Embassy of India, Oslo
E-4	Execution of projects in the power and steel sectors	Embassy of India, Oslo
E-1X, E-2X, E-3X, E-4X	Dependants of employment visa holders	Embassy of India, Oslo

Project work in power and steel has its own route. Annex III, paragraphs 38 and 39 describe a project visa for those two sectors. In other sectors, MHA's FAQ says a foreign national who comes to execute projects or contracts must come on an employment visa. A business visa does not cover that work.

The 2025 Order adds sector limits. Paragraph 9(2) of the Immigration and Foreigners Order, 2025 (S.O. 3986(E) of 1 Sep 2025) bars an employment visa holder from joining a private undertaking in electricity, water supply or petroleum without the civil authority's permission. Paragraph 9(3) requires the Central Government's prior approval to employ foreigners in defence, space technology, nuclear energy or human rights work. Paragraph 9(1) keeps foreigners out of public services and posts.

Can a foreign director work in India on a business visa?

A foreign director can attend board meetings and general meetings on a business visa. A director who runs the Indian company day to day and draws salary is employed and needs an employment visa. Schedule V of the Companies Act, 2013 also expects a non resident managing or whole time director to hold one.

Annex III, paragraph 40 lists business visa purposes. They include foreigners who are partners in a business or function as directors, and people attending board meetings or general meetings. Paragraph 41 says the applicant should not be visiting India "for full time employment in India". The e Business visa follows the same idea, and indianvisaonline.gov.in says plainly that an e Visa is not allowed for employment.

The Companies Act adds a second test for managerial roles. Under Part I of Schedule V, condition (e), a managing director, whole time director or manager appointed without Central Government approval must be resident in India. Explanation I treats as resident a person who stayed in India for a continuous 12 months before appointment. That person must have come to take up employment or carry on business.

Explanation II switches condition (e) off for companies in Special Economic Zones. It still requires a non resident to enter India on a proper employment visa from the Indian mission. So a foreign managing director with under 12 months in India needs Central Government approval. The employment visa is needed either way.

Section 149(3) of the Companies Act, 2013 needs at least one director who stays in India for 182 days or more in the financial year. A newly incorporated company applies the test in proportion at the end of its first financial year. A foreign director on an employment visa who lives in India can meet this. A director on a business visa rarely can. Each stay is capped at 180 days. Since 1 Jun 2026, registration to stay past 180 days in a calendar year is granted only in emergent circumstances.

Director profile	What they do in India	Visa we advise	Companies Act point
Nominee director of the foreign parent, lives abroad	Attends four board meetings a year	Business visa or e Business visa	None beyond DIN and KYC
Founder director, visits for sales and hiring	Meetings, hiring, negotiations; no salary from India	Business visa	Unlikely to meet the 182 day test in section 149(3)
Managing director relocated to India	Runs operations; salary from the Indian company	Employment visa (E-1 or E-2)	Schedule V condition (e); approval if under 12 months' stay
Whole time director on secondment	Full time role; cost charged to India	Employment visa (E-2)	As above; check the secondment for PE risk
OCI cardholder director	Any of the above	None	Residence still tested on days in India

Our view on sitting fees: a non executive director paid only sitting fees for meetings is attending board meetings, which paragraph 40 permits. Monthly retainers and managerial pay look like employment. We set up an employment visa as soon as a director takes a monthly fixed fee.

Is an e Visa enough for working in India?

No. The e Visa page on indianvisaonline.gov.in states: "e Visa is not allowed for employment. You may apply for a Regular Visa." An e Business visa suits meetings, sales and short visits. Work for an Indian employer needs a regular employment visa through an Indian mission.

The e Visa sub categories include e Tourist, e Business, e Medical, e Student, e Transit and e Production Investment. The standard e Business visa is valid for 365 days from the grant of the ETA, with multiple entries. Each continuous stay is capped at 180 days.

The e Visa page still tells a holder who stays past 180 days to register within two weeks after the 180th day. That text predates G.S.R. 424(E) of 1 Jun 2026. Under rule 12(1) as amended, the holder applies before the 180 days expire. Registration is then granted only in emergent circumstances.

Point	Employment visa	Business visa (regular)	e Business visa
Purpose	Employment with an organisation in India	Meetings, sales, setting up a venture, board meetings	Business visits
Employment allowed	Yes, with the sponsoring employer	No	No
Applied through	Indian mission or its visa centre	Indian mission or its visa centre	indianvisaonline.gov.in
Salary floor	Above INR 16.25 lakh a year	Not applicable	Not applicable
Validity at issue	Up to 2 years or the term of contract; 3 years in IT; 5 years under bilateral agreements	10 years for USA, Canada, Japan, UK and South Africa nationals; 5 years default	365 days from ETA grant
Stay limit	Whole validity	180 days a visit	180 days a visit
FRRO registration	Within 14 days of arrival if the visa exceeds 180 days	Only to stay past 180 days on a visit or in a calendar year; apply before the 180 days expire; granted only in emergent circumstances	Same as the regular business visa
Conversion in India	Not convertible, except in specific cases	Non convertible	Not convertible
Source	Annex III, paras 28 to 37	Annex III, paras 40 to 44; rule 12(1) as amended	indianvisaonline.gov.in e Visa page; rule 12(1) as amended

The e Visa page also lists an e Conference visa valid 30 days from the date of arrival. The e Production Investment visa is shown as six months with multiple entries. None of these allow employment.

Our longer guide on business visas and e Business visas for foreign founders covers the visiting founder.

What documents does the Indian company provide?

The Indian company signs the appointment letter and the employment contract, proves its own registration, and gives an undertaking at the FRRO stage. The employee supplies a CV, degrees and proof of experience. Missions publish their own checklists, so we always start from the page of the post where the employee will apply.

The Oslo and Beijing missions list these items for an employment visa. Annex III adds the company registration papers. MHA's list of FRRO supporting documents adds the request letter, the undertaking and, for extensions, tax papers.

Document	Who provides it	Stage	Source
Letter of appointment from the Indian company	Indian company	Visa application	Embassy of India, Oslo and Beijing
Signed employment contract stating annual income above INR 16.25 lakh	Both parties	Visa application	Embassy of India, Oslo and Beijing
Proof of the company's registration in India (certificate of incorporation)	Indian company	Visa application	Embassy of India, Beijing; MHA work visa FAQ
Curriculum vitae	Employee	Visa application	Embassy of India, Beijing
Degree certificates and proof of professional expertise	Employee	Visa application	Embassy of India, Oslo and Beijing
Passport with at least six months' validity; photograph 2 inch by 2 inch on a white background	Employee	Visa application	Embassy of India, Oslo
Request letter from the employer	Indian company	FRRO registration and extension	MHA supporting documents list
Undertaking letter from the employer	Indian company	FRRO registration and extension	MHA supporting documents list; MEA FRRO page
Residence proof in India	Employee or company	FRRO registration	MHA supporting documents list
Income tax papers	Employee and company	FRRO extension and renewal	MHA supporting documents list
Registration certificate or residential permit	Employee	FRRO extension and renewal	MHA supporting documents list

The MEA page on FRRO services describes the undertaking. The Indian company confirms responsibility for the worker's conduct and for repatriation if needed. Treat that as a real liability and approve it at board or authorised signatory level.

We also prepare a one page role note. It names the job, the skills that justify a foreign hire and the reporting line. Missions ask about skill and about Indian availability, and the note answers both.

How do you apply for an employment visa and how long does it take?

The employee applies online on the regular visa form, then submits the papers at the Indian mission or its visa centre in the country of residence. The Embassy of India in Oslo says processing takes at least six to eight weeks. The Beijing mission says employment visas issue only after approval from the authorities in India.

The general processing page on indianvisaonline.gov.in says a mission needs a minimum of three working days. That figure excludes special cases, and employment visas usually involve a reference to India. We plan on the mission's own figure and add two weeks for document queries.

Step	Who acts	What happens
1. Approve the hire and the salary	Indian company board or authorised officer	Confirms gross pay above INR 16.25 lakh and the role
2. Sign appointment letter and contract	Indian company and employee	Contract states salary, term and duties
3. Fill the online regular visa form	Employee	Choose the employment category and sub category
4. Submit papers and biometrics	Employee, at the mission or visa centre	Mission checks documents and may interview
5. Mission decision	Indian mission, with reference to India where needed	Visa granted for the term the mission decides
6. Travel and arrival	Employee	Immigration at the port of entry
7. FRRO registration within 14 days	Employee, with the company's letters	Online on the e FRRO portal
8. Payroll set up	Indian company	PAN, payroll tax, PF membership

Fees depend on nationality and reciprocity. The indianvisaonline.gov.in fee page and the mission page give the figure for each passport. We do not quote a single number, because there is none.

How long is an employment visa valid?

Annex III, paragraph 30 sets the initial grant. A general employment visa runs up to two years or the term of the assignment, whichever is less. IT software and IT enabled roles get up to three years. Technicians under bilateral or collaboration agreements get up to five years. The FRRO can extend up to five years from first issue.

Case	Initial validity	Extension in India	Source
General employment	Up to 2 years or term of assignment, whichever is less; multiple entry	By the FRRO, up to 5 years in total from the date of first issue	Annex III, para 30
IT software and IT enabled services	Up to 3 years or term of assignment, whichever is less; multiple entry	Same	Annex III, para 30
Bilateral or collaboration agreements	Up to 5 years or term of the agreement, whichever is less	Within the 5 year total	Annex III, para 30
Dependants (X visa)	Co terminus with the principal's visa	Extended with the principal	Annex III, para 33

MHA's FAQ describes extensions as granted "on an year to year basis". Missions often grant a shorter first visa than the maximum. We assume the employee will extend at least once inside India. Annex III sets separate terms for Japanese nationals, so read paragraph 30 itself for a Japanese hire.

The FRRO wants the extension application in before the visa expires. The extension file needs the contract, the employer's request letter and undertaking, the registration certificate and income tax papers. A missing Form 16 equivalent or unpaid tax is the most common reason we see an extension stall. From tax year 2026-27, the salary certificate is Form 130 (old Form 16).

When is FRRO registration required?

A foreigner on a visa valid for more than 180 days must register within 14 days of arrival in India. Rule 12(1) of the Immigration and Foreigners Rules, 2025 sets this. Most employment visas are longer than 180 days, so most employment visa holders register within the first two weeks.

Section 6 of the 2025 Act requires foreigners to register "subject to such conditions and in such manner as may be prescribed". The Rules are G.S.R. 596(E) of 1 Sep 2025. Rule 12(1) says the application goes on the "Indian Visa Su Swagatam" mobile app, or in Form I on the portal indianfrro.gov.in.

Rule 12(4) exempts four groups. The first is a holder of a visa of 180 days or less who leaves within that period. The second is a multi year visa holder whose stays remain within 180 days. Children below 12 and OCI cardholders complete the list. A visa endorsement that demands registration overrides the first exemption.

Situation	Registration deadline	Rule
Visa valid for more than 180 days (most employment visas)	Within 14 days of arrival	Rule 12(1)
Visa of 180 days or less, foreigner wants to stay longer	Any time before the 180 days expire (before 1 Jun 2026: within 14 days after the 180th day)	Rule 12(1), third proviso, as amended on 1 Jun 2026
Visa longer than 180 days marked "each stay not to exceed 180 days", foreigner wants to stay longer on one visit or in the calendar year	Before the 180 days run out; registration granted only in emergent circumstances	Rule 12(1), fourth proviso, as amended on 1 Jun 2026
Nationals of specified countries	As set by a general or special order	Rule 12(1), last proviso
Child born in India to a foreigner	Inform within 30 days of birth; not needed where a parent is Indian and keeps the child's Indian citizenship	Rule 12(2), with provisos added on 1 Jun 2026
Child below 12, OCI cardholder	Exempt	Rule 12(4)

The Immigration and Foreigners (Amendment) Rules, 2026, G.S.R. 424(E) of 1 Jun 2026, changed two provisos to rule 12(1). They came into force on publication in the Gazette. The third proviso used to allow registration "within fourteen days after the expiry of one hundred and eighty days". It now requires registration "any time before the expiry of the said period of one hundred and eighty days". The fourth proviso now ends with the words "but such registration shall be granted only in emergent circumstances".

The 14 day rule for employment visa holders did not change. The amendment bites on business visas and e Business visas, which carry the 180 day stay limit. It does not say what counts as emergent circumstances. A director or secondee who needs more than 180 days in India in a calendar year should not plan on a business visa.

MEA's FRRO page gives the country timelines from the older framework. Pakistan nationals register within 24 hours of arrival. Afghan nationals are exempt on visas of 30 days or less and otherwise register within 14 days.

Registration is not a one time event. Rule 15 requires the foreigner to tell the registration officer before moving address or leaving the address for eight weeks or more. A stay of more than eight weeks in another district needs a report to that district. Changes in the particulars on the certificate must be reported within 14 days, under rule 15(6).

The company's housing also creates a duty. Section 8 of the Act and rule 17 make every keeper of accommodation report the foreigners it houses. Rule 17(5) asks for 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. If the company rents a guest house or service apartment in its own name, it may be the keeper, so we check who files Form III.

MHA has notified FRROs and district SPs or DCPs as registration officers and civil authorities under the 2025 Act. The notifications are listed on MHA's Foreigners Division page.

Can an employment visa holder change employer or convert the visa?

Annex III, paragraph 37 bars a change of employer during the visa. The one exception is a move inside a group. That means a move between a registered holding company, joint venture or consortium and its subsidiaries, or between those subsidiaries. The move must be at a senior or skilled level, and paragraph 37 requires MHA's prior permission. Paragraph 34 makes the employment visa non convertible, except in specific cases.

This matters for group restructurings. A secondee moving from the Indian subsidiary to a sister subsidiary in India falls inside the exception. We still apply for MHA's permission before the move. A hire moving to a client or an unrelated Indian company needs a fresh employment visa from abroad.

The business visa is just as rigid. MHA's FAQ says a business visa is non convertible. A founder who arrives on a business visa and decides to stay as managing director must go back and apply at the Indian mission. The FRRO lists visa conversion as a service, but only for the cases the Visa Manual permits.

What about the family of an employment visa holder?

The spouse and dependent children get a dependent visa (X visa, shown as E-1X and so on), valid as long as the principal's visa. Annex III, paragraph 33 lets dependants take a student or research visa if eligible. A dependent visa does not allow employment, so a working spouse needs an employment visa of their own.

The spouse's visa extends with the principal's. Children aged 12 and above register with the FRRO on the same 14 day clock. Children below 12 are exempt under rule 12(4)(c).

What tax applies to a foreign employee in India?

Salary for work done in India is taxable in India, wherever it is paid and whatever the person's residence. The Indian employer deducts tax at source under section 392 of the Income Tax Act, 2025 (old section 192) and files Form 138 (old Form 24Q). Residence under section 6 then decides whether foreign income is taxed too.

Section 6(2) of the Income Tax Act, 2025 makes an individual resident in a tax year on either of two tests:

1. In India for 182 days or more in that tax year.
2. In India for 60 days or more in that tax year, and 365 days or more in the four preceding tax years.

Section 6(13) defines "not ordinarily resident". It covers a resident who was non resident in nine of the ten preceding tax years. It also covers one in India for 729 days or less in the seven preceding tax years. In the first years, most expats are resident but not ordinarily resident. Their foreign income then stays largely outside Indian tax.

One exemption helps short visits. Schedule IV, serial 3, read with section 11, exempts the pay of a non citizen employed by a foreign enterprise. All three conditions must hold.

The foreign enterprise does no business in India. The stay is 90 days or less in the tax year. The pay is not deducted from any employer's income in India. A secondee on an Indian employment visa, paid or charged to the Indian subsidiary, fails the third condition.

Tax treaties can also exempt short stays, under the dependent personal services article. Those tests usually look at days, who employs the person and who bears the cost. Read the treaty itself, for example our India US DTAA guide, and claim relief with Form 41 (old Form 10F) and a tax residency certificate.

Item	Income Tax Act, 2025	Income Tax Act, 1961	What it does for an expat
Residence	Section 6(2)	Section 6(1)	182 day and 60 plus 365 day tests
Not ordinarily resident	Section 6(13)	Section 6(6)	Keeps most foreign income out in early years
Income deemed to accrue in India	Section 9	Section 9(1)(ii)	Salary for services in India taxed in India
Short stay exemption	Section 11, Schedule IV serial 3	Section 10(6)(vi)	90 day exemption for foreign employer pay
Perquisites, including employer PF above INR 7,50,000	Section 17	Section 17(2)(vii)	Taxes excess retirement contributions
Standard deduction	Section 19(1), table serial 2	Section 16(ia)	INR 75,000 under the new regime
New tax regime slabs	Section 202	Section 115BAC	Default rates for individuals
Rebate	Section 156	Section 87A	Residents only; up to INR 60,000 on income up to INR 12 lakh
TDS on salary	Section 392	Section 192	Employer deducts monthly
Quarterly salary TDS statement	Form 138	Form 24Q	Filed by the employer
Salary TDS certificate	Form 130	Form 16	Issued to the employee
Treaty claim information	Form 41 under section 159(8)	Form 10F	Supports a treaty claim

The new regime under section 202 is the default. The slabs apply to resident and non resident individuals alike. Section 19 gives a standard deduction of INR 75,000 under this regime.

Total income (INR)	Rate under section 202
Up to 4,00,000	Nil
4,00,001 to 8,00,000	5%
8,00,001 to 12,00,000	10%
12,00,001 to 16,00,000	15%
16,00,001 to 20,00,000	20%
20,00,001 to 24,00,000	25%
Above 24,00,000	30%

The department's FAQs on computation of tax add health and education cess of 4 percent on tax plus surcharge. Under section 202(1), the surcharge stops at 25 percent even above INR 5 crore. The rebate under section 156 goes only to resident individuals.

If the foreign parent pays part of the salary abroad, the Indian company should still report it when it bears the cost. If no one deducts tax on that part, the employee pays advance tax under section 408. Secondment cost recharges also raise permanent establishment and withholding questions. Our notes on permanent establishment risk and TDS on payments to non residents cover them.

The expat needs a PAN for payroll. Our guide to PAN for foreign companies and non residents covers the application.

Do foreign employees pay PF in India?

Yes, in most cases. Paragraph 2 of the Employees' Provident Funds Scheme, 2026 makes a foreign passport holder in a covered establishment an "international worker". Paragraph 9(5) makes membership mandatory from the date of joining, whatever the salary. A certificate of coverage under a social security agreement is the exit.

PF is 12 percent of wages from the employer and 12 percent from the employee. EPFO collected on an expat's full pay under the 1952 scheme. The 2026 scheme caps contributions at the INR 25,000 wage ceiling from 17 Sep 2026, with no stated carve out for international workers. We contribute on full Code wages until EPFO says otherwise in writing.

Expat profile	PF position	Withdrawal on leaving India
From a country with an operative social security agreement, holding a certificate of coverage	Excluded employee while the certificate is valid	Not applicable
From an agreement country, no certificate	International worker; PF from day one	As the agreement provides
From a country with no agreement, such as the US, UAE or Singapore	International worker; PF from day one	Only at 58 or on permanent and total incapacity
OCI cardholder with a foreign passport	International worker; the passport decides	As above, by passport country

The UK and India Double Contributions Convention took effect on 15 Jul 2026. UK detached workers can stay in the UK scheme for up to 60 months. Our full guide on PF and ESI for foreign owned companies and expats has the agreement list, wage rules and a costed example.

What are the penalties for working without the right visa?

Section 23 of the 2025 Act covers overstay, breach of visa conditions and breach of the Rules. The punishment is up to three years' imprisonment, a fine up to INR 3 lakh, or both. Under the compounding notification S.O. 3999(E) of 1 Sep 2025, taking up employment on a visa other than an employment visa compounds at INR 3 lakh.

Section 25 lets the Central Government compound offences under sections 21, 23 and 24. It covers offences by an individual, a company, an organisation, or its officers and employees. Section 24 punishes abetment with the same punishment as the offence abetted. An employer who knowingly puts a business visa holder to work exposes itself under section 24.

Offence	Section	Compounding amount (INR)
Taking up employment in an organisation on a visa other than an employment visa	23	3,00,000
Unauthorised activity on a non tourist 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 of more than one year	23	2,00,000 plus 50,000 for each year, capped at 3,00,000
Failure to register, 1 to 30 days late	23	10,000
Failure to register, 31 to 90 days late	23	20,000
Failure to register, 91 to 180 days late	23	50,000
Failure to register, 181 days to one year late	23	1,00,000
Accommodation keeper's failure to report a foreigner	23	50,000 for each case
Entry without a valid passport or visa	21	5,00,000

The FRRO compounds these amounts. An immigration officer at the port can compound overstay or non registration of up to 30 days. Compounding is optional for the authority. Forged documents fall under section 22, which section 25 does not list as compoundable. Section 22 carries two to seven years and a fine of INR 1 lakh to INR 10 lakh.

The figures come from MHA's compounding notification. A visa breach also shows up later. It can lead to refusal of a future visa, and the FRRO sees it on any extension.

What changed in 2026

The employment visa categories and the salary floor did not change in 2026. The legal base changed on 1 Sep 2025, and 2026 is the first full year under it. Rule 12 registration for stays past 180 days changed on 1 Jun 2026. Tax forms and PF rules also changed during 2026. The table lists each change that touches an expat hire.

Date	Old position	New position	Instrument
1 Sep 2025	Foreigners Act, 1946; Registration of Foreigners Act, 1939; Passport (Entry into India) Act, 1920; Immigration (Carriers' Liability) Act, 2000	Immigration and Foreigners Act, 2025 in force; four Acts repealed by section 36	S.O. 3981(E) of 31 Aug 2025
1 Sep 2025	Registration of Foreigners Rules, 1992	Immigration and Foreigners Rules, 2025; registration within 14 days under rule 12	G.S.R. 596(E) of 1 Sep 2025
1 Sep 2025	Foreigners Order, 1948	Immigration and Foreigners Order, 2025; employment sector limits in paragraph 9	S.O. 3986(E) of 1 Sep 2025
1 Sep 2025	Penalties under the repealed Acts	Compounding table; INR 3 lakh for employment on the wrong visa	S.O. 3999(E) of 1 Sep 2025
1 Apr 2026	Income Tax Act, 1961; Form 16 and Form 24Q; section 192	Income Tax Act, 2025; Form 130 and Form 138; section 392	Act 30 of 2025; Income Tax Rules, 2026 (G.S.R. 198(E) of 20 Mar 2026)
1 Jun 2026	Holder of a visa of 180 days or less who stays on registers within 14 days after the 180th day	Registers any time before the 180 days expire	G.S.R. 424(E) of 1 Jun 2026, rule 12(1), third proviso
1 Jun 2026	Holder of a longer visa with a 180 day stay limit may register before the 180 days expire to stay longer	Same timing, but registration is granted only in emergent circumstances	G.S.R. 424(E) of 1 Jun 2026, rule 12(1), fourth proviso
29 Jun 2026	EPF Scheme, 1952, paragraph 83 for international workers	EPF Scheme, 2026, paragraphs 2, 9 and 10	G.S.R. 525(E)
15 Jul 2026	No UK social security agreement	UK and India Double Contributions Convention in force	PIB release of 17 Jun 2026
17 Sep 2026	EPF wage ceiling INR 15,000	EPF wage ceiling INR 25,000	S.O. 5109(E)

The salary floor of INR 16.25 lakh, the validity periods and the change of employer rule still come from the Visa Manual, 2019. MHA's November 2025 monthly report records only Visa Manual changes for Australian nationals under the India Australia trade agreement.

Worked example

Scenario 1: a secondee arriving on 1 Oct 2026. A German parent seconds an engineer to its Indian Private Limited subsidiary in Pune. The Indian company employs the engineer and pays INR 40,00,000 a year. That is INR 3,33,333 a month. Basic pay is half of the package. The engineer has never been to India before.

Step 1. Test the salary floor. INR 40,00,000 is above INR 16,25,000, so the visa file passes. The contract names the Indian company as the payer.

Step 2. Register. The mission grants a two year visa, longer than 180 days. The engineer arrives on 1 Oct 2026 and must register by 15 Oct 2026, 14 days after arrival.

Step 3. Test residence for tax year 2026-27. Days in India from 1 Oct 2026 to 31 Mar 2027 are 31 + 30 + 31 + 31 + 28 + 31, or 182 days. The engineer is resident under section 6(2)(a). The engineer was non resident in all the preceding years, so is not ordinarily resident under section 6(13).

Had the engineer arrived on 2 Oct 2026, the count would be 181 days. With no earlier stays, the 60 plus 365 day test also fails. The engineer would be non resident. Indian salary is taxed either way; the status matters for foreign income and the rebate.

Step 4. Compute tax for the six months.

Line	INR
Salary for 1 Oct 2026 to 31 Mar 2027 (6 months)	20,00,000
Less standard deduction under section 19	75,000
Taxable salary	19,25,000
Tax on first 4,00,000	Nil
Tax on 4,00,001 to 8,00,000 at 5%	20,000
Tax on 8,00,001 to 12,00,000 at 10%	40,000
Tax on 12,00,001 to 16,00,000 at 15%	60,000
Tax on 16,00,001 to 19,25,000 at 20%	65,000
Tax before cess	1,85,000
Health and education cess at 4%	7,400
Total tax	1,92,400
Monthly TDS under section 392 (six months)	32,067

No surcharge applies below INR 50 lakh. The rebate under section 156 does not apply, because income exceeds INR 12 lakh.

Step 5. Add PF. Germany has a social security agreement with India. Assume the parent obtains no certificate of coverage. Basic pay is INR 1,66,667 a month, and we treat it as Code wages.

PF line (monthly)	INR
Employee PF at 12% of 1,66,667	20,000
Employer PF at 12% of 1,66,667	20,000
Employer PF for a full year	2,40,000
Section 17 perquisite limit for employer contributions	7,50,000
Taxable perquisite	Nil

Employee contributions of INR 2,40,000 a year stay under INR 2,50,000, so PF interest stays tax free. With a German certificate of coverage, both PF lines become nil.

Scenario 2: a founder who stayed on. A Singapore founder enters on a business visa on 1 Jun 2026 to set up the subsidiary. In August the board appoints the founder as managing director on a monthly salary, and payroll starts in September.

Taking up paid employment on a business visa is the offence in the compounding table at INR 3,00,000. Under section 24, the company can face the same punishment as an abettor. Schedule V condition (e) also fails, because the founder had not lived in India for 12 months. The fix is to stop the salary and apply for an employment visa from Singapore. The board then seeks Central Government approval for the appointment or waits out the 12 months.

Common mistakes

1. Using a business visa for a salaried director. Paragraph 41 of Annex III excludes full time employment. Fix: apply for an employment visa before the director draws monthly pay.
2. Relying on an e Business visa for a long project. The e Visa page bars employment, and each stay ends at 180 days. Since 1 Jun 2026, a longer stay is registered only in emergent circumstances. Fix: move anyone on Indian payroll to an employment visa.
3. Quoting USD 25,000 as the floor. Annex III of 2020 uses INR 16.25 lakh gross. Fix: write the rupee figure into the contract, with a margin for rounding.
4. Missing the 14 day registration. Rule 12(1) counts from arrival, and late registration compounds from INR 10,000. Fix: book the e FRRO filing for the first week.
5. Moving the employee to a sister company without checking. Paragraph 37 permits only group moves, at a senior or skilled level, with MHA's prior permission. Fix: map the group structure and apply to MHA before any transfer.
6. Forgetting address changes. Rule 15 needs a report before a move and within 14 days of other changes. Fix: tie FRRO updates to the HR change of address process.
7. Letting the spouse work on an X visa. The dependent visa does not allow employment. Fix: get the spouse an employment visa of their own.
8. Skipping PF for an OCI cardholder. PF tests the passport, not OCI status. Fix: enrol the employee as an international worker unless a certificate of coverage applies.
9. Assuming a 90 day stay is always tax free. Schedule IV serial 3 fails once the Indian company bears the pay. Fix: run the three conditions for every short assignment.
10. Filing the extension late. The FRRO wants income tax papers and the employer's letters. Fix: start the extension two months before expiry with Form 130 and tax challans ready.

For a payroll and visa compliance review, our payroll management team can check one hire end to end through our contact page.

Checklist

1. Confirm the role is skilled and cannot be filled locally, and record why in a one page role note.
2. Check paragraph 9 of the Immigration and Foreigners Order, 2025 for sector limits and approvals.
3. Set gross pay above INR 16,25,000 a year and name the Indian company as the payer in the contract.
4. Issue the appointment letter, sign the contract and collect the certificate of incorporation.
5. Collect the employee's CV, degrees, experience letters, passport and photographs.
6. Apply on the regular visa form and book the mission or visa centre appointment.
7. Apply separately for dependent visas for the spouse and children.
8. Approve the employer's request letter and undertaking for the FRRO.
9. Register the employee on the e FRRO portal within 14 days of arrival.
10. File Form III (the old Form C) within 24 hours if the company houses the employee in accommodation it keeps.
11. Obtain a PAN and set up payroll TDS under section 392 from the first salary.
12. Enrol the employee in PF as an international worker, or file the certificate of coverage.
13. Count days in India each tax year and record residence and not ordinarily resident status.
14. Diary the visa expiry and start the FRRO extension two months before it.
15. Report address changes and absences under rule 15 within the deadlines.

Frequently Asked Questions

Can a foreigner work in India on a tourist visa or e Tourist visa?+

No. A tourist visa and an e Tourist visa do not allow employment. The e Visa page on indianvisaonline.gov.in states that an e Visa is not allowed for employment. Taking up employment in an organisation on any visa other than an employment visa compounds at INR 3,00,000 under S.O. 3999(E) of 1 Sep 2025.

Is the employment visa salary threshold USD 25,000 or INR 16.25 lakh?+

MHA's Annex III of 20 Aug 2020, paragraph 28, sets a gross salary above INR 16.25 lakh a year. Older MHA FAQs still mention USD 25,000. Missions such as Oslo and Beijing ask for a contract above INR 16.25 lakh, so use the rupee figure. Faculty at IITs, NITs, IIMs, IISERs and central universities need INR 9.10 lakh.

Does an OCI cardholder need an employment visa to work in India?+

No. The MEA OCI scheme page says an OCI cardholder holds a multiple entry, multi purpose, lifelong visa and is exempt from FRRO registration for any length of stay. Paragraph 9(6) of the Immigration and Foreigners Order, 2025 keeps OCI cardholders outside its employment limits. PF still applies by passport.

Can a foreign national be a director of an Indian company without an employment visa?+

Yes, if the director only attends board meetings and general meetings. Annex III, paragraph 40 lists these as business visa purposes. A director who works full time or draws a monthly salary is employed and needs an employment visa. Schedule V of the Companies Act, 2013 expects a non resident managing director to enter on an employment visa.

Can a business visa be converted to an employment visa in India?+

No. MHA's work visa FAQ says a business visa is non convertible. The employee returns to the home country and applies for an employment visa at the Indian mission. Annex III, paragraph 34 also makes the employment visa non convertible to other types, except in specific cases.

What is the FRRO registration deadline for an employment visa holder?+

Within 14 days of arrival, where the visa is valid for more than 180 days. Rule 12(1) of the Immigration and Foreigners Rules, 2025 sets this. The application goes on the Indian Visa Su Swagatam app or in Form I on indianfrro.gov.in. Children below 12 and OCI cardholders are exempt under rule 12(4).

What happens if an expat registers with the FRRO late?+

Non registration is an offence under section 23 of the Immigration and Foreigners Act, 2025. Under S.O. 3999(E), it compounds at INR 10,000 for up to 30 days, INR 20,000 for 31 to 90 days and INR 50,000 for 91 to 180 days. The FRRO handles compounding; a port immigration officer can compound up to 30 days.

Can an employment visa holder move to another Indian company?+

Only within a group. Annex III, paragraph 37 permits a change between a registered holding company, joint venture or consortium and its subsidiaries, or between those subsidiaries. The move must be at a senior or skilled level and needs MHA's prior permission. For any other employer, the employee needs a fresh employment visa.

Can the spouse of an employment visa holder work in India?+

Not on the dependent visa. The spouse gets an X visa, co terminus with the principal's visa under Annex III, paragraph 33. Dependants may take a student or research visa if eligible. A spouse who wants to work needs an employment visa sponsored by their own employer, meeting the INR 16.25 lakh floor.

How long can an employment visa be extended in India?+

The FRRO can extend an employment visa up to five years in total from the date of first issue, under Annex III, paragraph 30. MHA's FAQ describes extensions on a year to year basis. The FRRO asks for the contract, the employer's letters, the registration certificate and income tax papers.

Is a foreign employee taxed in India on salary paid abroad?+

Yes, if the salary is for work done in India. Section 9 of the Income Tax Act, 2025 treats such salary as accruing in India. The Indian employer deducts tax under section 392 on what it pays. The employee pays advance tax under section 408 on any part paid abroad without deduction.

When does the 90 day short stay exemption apply?+

Schedule IV, serial 3, read with section 11 of the Income Tax Act, 2025, exempts a non citizen's pay from a foreign enterprise. The enterprise must do no business in India, the stay must be 90 days or less in the tax year, and the pay must not be deducted in India. Employment visa holders paid by the Indian company do not qualify.

Which income tax forms replace Form 16 and Form 24Q for expat payroll?+

From tax year 2026-27, Form 130 replaces Form 16 as the salary TDS certificate. Form 138 replaces Form 24Q as the quarterly salary TDS statement under section 397(3)(b). Tax is deducted under section 392 of the Income Tax Act, 2025, which replaces section 192 of the 1961 Act.

Does PF apply to a US citizen on an Indian employment visa?+

Yes. A US passport holder working for a covered Indian establishment is an international worker under paragraph 2 of the EPF Scheme, 2026. India has no social security agreement with the United States, so no certificate of coverage exists. The employee can withdraw only at 58 or on permanent and total incapacity.

Is FRRO registration needed for an e Business visa holder?+

Only to stay beyond 180 days. Since G.S.R. 424(E) of 1 Jun 2026, rule 12(1) of the Immigration and Foreigners Rules, 2025 requires the application before the 180 days expire. Registration is granted only in emergent circumstances. The e Visa page still mentions two weeks after the 180th day, but that text predates the amendment.

Does a company that houses an expat have to report it?+

Yes, if the company is the keeper of the accommodation. Section 8 of the Immigration and Foreigners Act, 2025 and rule 17 of the 2025 Rules require keepers to report foreigners they house. Rule 17(5) asks for arrival details within 24 hours in Form III, which many still call Form C. Failure compounds at INR 50,000 for each case under S.O. 3999(E).

Sources

• 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 from 1 Sep 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, Immigration and Foreigners Order, 2025, S.O. 3986(E) of 1 Sep 2025, with corrigendum, https://www.mha.gov.in/sites/default/files/2025-09/4merged_16092025.pdf
• Ministry of Home Affairs, S.O. 3999(E) of 1 Sep 2025, compounding of certain 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
• 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, Foreigners, Tourists and Visa page, https://www.mha.gov.in/en/divisionofmha/foreigners-division/foreigners-tourists-and-visa
• Ministry of Home Affairs, FAQs relating to work related visas issued by India, https://www.mha.gov.in/sites/default/files/2022-08/work_visa_faq[1].pdf
• Ministry of Home Affairs, Supporting documents to be submitted online for FRRO services, https://www.mha.gov.in/sites/default/files/2022-08/SupportDocServicesFromFRROs2014%5B1%5D.pdf
• Ministry of Home Affairs, Major achievements for November 2025, https://www.mha.gov.in/sites/default/files/2025-12/ACHIEVEMENTSNovember_26122025.pdf
• Ministry of External Affairs, Visa services provided by FRROs, https://www.mea.gov.in/visa-related-services-provided-by-frros-fros-menu
• Ministry of External Affairs, Overseas Citizenship of India scheme, https://www.mea.gov.in/overseas-citizenship-of-india-scheme
• Government of India, e Visa page, 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, Employment visa, https://www.indianembassyoslo.gov.in/page/employment-visa/
• Embassy of India, Beijing, Work visa, https://www.eoibeijing.gov.in/page/work-visa/
• Income Tax Department, Companies Act, 2013, Schedule V, https://www.incometaxindia.gov.in/w/schedule-v
• Income Tax Department, Companies Act, 2013, section 149, https://www.incometaxindia.gov.in/w/section-149-79
• 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, Schedule IV, https://www.incometaxindia.gov.in/w/schedule-iv-3
• Income Tax Department, Income Tax Act, 2025, section 17, https://www.incometaxindia.gov.in/w/section-17-225
• Income Tax Department, Income Tax Act, 2025, section 19, https://www.incometaxindia.gov.in/w/section-19-206
• Income Tax Department, Income Tax Act, 2025, section 202, https://www.incometaxindia.gov.in/w/section-202-76
• Income Tax Department, Income Tax Act, 2025, section 392, https://www.incometaxindia.gov.in/w/section-392-6
• Income Tax Department, Form No. 138 guidance note, https://www.incometaxindia.gov.in/documents/d/guest/fn-138
• Income Tax Department, FAQs on computation of tax, https://www.incometaxindia.gov.in/documents/d/guest/faqs-on-computation-of-tax
• 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
• Ministry of Labour and Employment, Employees' Provident Funds Scheme, 2026, G.S.R. 525(E), https://egazette.gov.in/WriteReadData/2026/273957.pdf