Curious About Indian Laws for Foreign-Registered LLCs in the IT Sector? Let's Discuss!

Hello,

I am working in an IT company in Gujarat, with a staff strength of 25-30 employees. The company has its registered office in the US, but the software development is carried out at the Indian office. The company is essentially an 'LLC' entity.

I am interested in understanding which Indian laws govern an LLC company that is registered in a foreign country. I believe there must be specific regulations that such companies need to adhere to in order to operate here. Do these companies have to comply with all the laws of the land in which they are functioning? Additionally, I would like to learn about the laws that govern the Indian IT industry, especially in the state of Gujarat.

I look forward to receiving answers to my queries.

Thank you!

Dear Varsha,

All laws applicable to the Shops & Establishments Act will be applicable to the IT industry. Though you have a registered office in a foreign country, you need to register your company in India as well. Please email me if you require a checklist of laws applicable to the IT industry.

Regards,
Suresh Ramalingam
Manager - Compliance

Dear,

Your query is already running at "Talk to Senior," so what is the need to use challenging words for HR professionals for not providing any answers?

Regards,

R.N.Khola
Skylark Associates, Gurgaon
(Labour Law & Legal Consultants)
09810405361

1. Is the ID Act applicable to software engineers working with an IT company in Mumbai?

2. Is the "Workman" definition applicable to software engineers working with an IT company?

3. Is variable pay, part of CTC, covered under the "wages" definition of the ID Act?

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Basically, the definition of workmen under the ID Act will not be applicable to software professionals. The reason is that the Act has prescribed a certain limit of monthly salary for individuals to fall under the purview of the ID Act, and software personnel will not meet that criteria.

One of the most important cases in this regard is BWSSB v/s Rajappa, which has defined the term "workmen," but the decision is subject to review by the full bench of the Supreme Court.