Recruiting in India does not always require setting up a company there. It does require knowing under which regime a foreign employer is allowed to file returns and pay contributions, and on what conditions.
Three routes generally exist: registration of the foreign employer with the local bodies, the use of an employer of record established on the spot, or the creation of a structure. The first is the least costly but presupposes a local correspondent able to file the returns in the language and to the calendar of the country; the second moves the employment relationship to a third party, which is not neutral in law. The choice is made in the light of the number of employees, the duration envisaged and what local law actually permits.
Local presence is settled first. Employing without an entity is conceivable through a third-party employer, but once there is real activity a private limited company or a limited liability partnership becomes necessary, with registration at the Registrar of Companies.
Registrations are then multiple and distinct. The permanent account number identifies the company; the tax deduction account number, or TAN, is indispensable for remitting tax withheld from salaries; goods and services tax registration governs invoicing. On the social side, the employer registers with the Employees' Provident Fund Organisation and with the Employees' State Insurance Corporation once headcount or pay thresholds are reached. Registration of premises with the state labour department is added to that, and is routinely overlooked in international files.
No general statute imposes writing, but the contract is indispensable in practice: it fixes the salary structure, a central issue in India since pay is broken down into basic salary and allowances that do not all attract the same social and tax treatment.
Withholding on salary is mandatory, with quarterly returns and an annual certificate issued to the employee. Contributions are paid every month and, when the employee leaves, the end-of-service gratuity falls due after a qualifying period of service.
In India, running payroll on behalf of third parties is reserved by law to no registered profession: any company may take it on. The absence of a legal barrier shifts the checking onto you, and that is why the network itself verifies the registration, the tax and social security standing and the insurance cover of every firm before listing it.
| Local wording | Issuing body | Validity | Source |
|---|---|---|---|
| Certificate of Incorporation (Form INC-11), portant le CINCertificate of Incorporation with Corporate Identification Number Le CIN à 21 caractères permet de vérifier la société sur le portail MCA (rubrique « View Company/LLP Master Data »). Une LLP produit son Certificate of Incorporation avec un LLPIN ; un cabinet exploité en partnership ou en proprietorship n'a pas de CIN et justifiera par son Shops & Establishments Certificate et son acte de partnership. | Ministry of Corporate Affairs — Registrar of Companies (RoC) | No expiry Required | Official website |
| PAN card, TAN allotment letter et GST Registration Certificate (Form GST REG-06, portant le GSTIN)PAN, TAN and GST Registration Certificate Trois identifiants distincts et tous nécessaires : le PAN identifie la société, le TAN est indispensable pour verser la retenue à la source (TDS) sur les salaires du client, le GSTIN conditionne la facturation. Le GST REG-06 se télécharge sur gst.gov.in et le GSTIN se vérifie librement. | Income Tax Department (PAN, TAN) ; Goods and Services Tax Network (GSTIN) | No expiry Required | Official website |
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