Navigating Contract Labor Registration in India: Do We Need to Register for Just One Contractor?

I'm hoping you could help me clarify the requirements for contract labor to register in India. We are a company based abroad and are looking to hire one individual on contract for services governed by another jurisdiction (outside of India). I believe that the individual needs to register with the relevant authorities to be able to work in this capacity, but the individual seems to disagree with that. Also, am I right in thinking that we do not require any registration in India as we will only have one contractor? Any advice would be greatly appreciated. Thank you.

Let me first understand your query. What I understand is:

1. Your company is based abroad.
2. You wish to engage one person in India to expand your business.
3. There will be a service contract between you and that person, enforceable outside India.
4. Your question is whether this person is required to be registered as a contractor with any authority in India.

If my understanding is correct, then my answer to your query is - No.

However, keep in mind, in India, you are subject to numerous enactments at the Central, State, and Local body levels, based on various parameters. You are also subject to International Law. It is important to note that any law is subject to interpretation, depending on how you represent yourself.

If it is established that your company is conducting business in India, your company needs to be incorporated with the ROC as a foreign company registered in India, to the best of my knowledge.

I am not an expert, but I participate in this forum to enhance my knowledge. I am sure another learned member will contribute their knowledge based on my response, aligning with my objective.

Thank you.

Thank you very much for answering my question, Korgaonkar, and just to confirm - yes, you understood the criteria of the arrangement correctly. Your help is much appreciated. Have a lovely day.