How Foreign Companies Can Build a Team in India Without an Indian Entity
How Foreign Companies Can Build a Team in India Without an Indian Entity India is increasingly becoming a strategic hiring market for foreign companies. But there is a problem many companies encounter before making their first hire: “We want to hire people in India, but we don't have an Indian company yet.” That doesn't necessarily mean the hiring plan has to stop. A foreign business may want to test the Indian market, hire a small engineering team, recruit a country manager, establish an initial sales function, build a GCC team or begin operations before committing to a full Indian subsidiary. This is where the concept of build a team in India without entity becomes commercially important. However, there is an important distinction between being able to employ people in India without immediately incorporating a subsidiary and simply paying Indian workers from an overseas company. The latter can create employment, tax, payroll and permanent-establishment questions. The prac...