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We are a Foreign company and wants to appoint an Indian representative in India. We will be sending all the salaries from our company / country Directly to his Indian Bank account. Is there any complication in appointing a Indian employee by a foreign company in India. Although , we are not thinking about opening a direct sales office.
Since , this will be only one single employee to be recruited , does a foreign company need to be registered in India or is it possible to hire someone as an offshore employee without having physical office / presence in India.
Dear Rajeshktiwari,
You are a foreign company and wants to do some business in India. You wants to appoint some staff in India. The salary of staff will be paid in India in INR through Bank.
You need to first register your company in India with ROC as foreign company doing business in India within 30 days of setting up a place of business in India. Number of employees is not a criteria for this registration. Criteria is your business.
You will have to follow the Indian labour laws as applicable.
You can start a Representative office in India. Since there is no investment that you are making and only desire to have a representative office, you do not have to obtain any clearance from FIPB. You just have to register under the Shops and Establishments act in the city where you plan to have the Resident Representative office
Dear Anonymous,
The queriest is not asking on Foreign Investment and clearance from Foreign Investment Promotion Board on Foreign Investment.
He is asking whether he is required to register his company in India. I have given the answer to him. According to me it is a right answer.
Why you feel there is no need to register his company in India and he just need to register under S&E?
We are a Multinational company and headquartered in Singapore and we have a representative office in India in Bangalore with just one employee and one secretary apart from one office peon. Its registered under Shops and establishment act. Professional advise has been given to us by a Chartered accountant firm stating that we only need to register under S & E act, since it is a representative office.
My advise is based on the professional guidance received by our company from an established CA firm in India. Hope this clarifies as to the reasons of my posting.
Dear Rajesh
Greetings for the day. I am HR, Manpower consultant and Trainer with 32 years managerial experience of manufacturing industry. I am of the opinion that your employee may be asked to open bank account with Indian Bank overseas branch and your company can transfer salary into bank. Later he can transfer to branch in India. This will save time and money. Hope this will suffice your purpose. you may write or call on me on cell +919890752690
Thanks
Avinash Kanoray
A resident of India cannot have an overseas account under normal circumstances. Work permit of the foreign country is required to open an account in that country. The clamp down is now very hard from all Governments across the world, especially after the HSBC scandal. Even we NRI's are facing problems with Indian banks abroad. They are asking us a whole lot of documents such as domicile, income proof, tax returns etc. I am afraid that this will not be a solution.
Dear Rajesh
Greetings for the day. I am HR, Manpower consultant and Trainer with 32 years managerial experience of manufacturing industry. I am of the opinion that your employee may be asked to open bank account with any indian bank having overseas branch and you can transfer his salary into that bank. No need to appoint representative in India. You may call on me on cell +919890752690
Avinash Kanoray
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