Work visas and sponsoring talent in India
Reviewed by Mellow Editorial Team, HR & payroll content team
Hiring a foreign national in India is possible, but it requires the employer to take on specific legal obligations before the worker sets foot in the country. The process is manageable if you understand the visa categories, the sponsorship requirements and the ongoing compliance responsibilities.
The main visa categories for working in India
India does not have a single "work visa" — the type of visa depends on what the person will actually do.
Employment Visa (E Visa) is the standard route for foreigners employed by an Indian company or a foreign company's Indian entity. The employer in India acts as the sponsor. The employee must typically be a skilled specialist, and the salary must meet a minimum threshold set by the government — this is intended to prevent displacement of local workers. Unskilled and semi-skilled roles are generally not eligible.
Business Visa covers short-term commercial activities — attending meetings, exploring partnerships, signing contracts — but does not permit the holder to take up employment or receive a salary from an Indian entity. Using a business visa to work is a compliance violation for both the individual and the company.
Project Visa applies in specific sectors, historically power and steel, where foreign nationals are deployed for a defined project. It is issued for the duration of the project.
Intern Visa exists for foreign nationals doing internships with Indian companies, though it comes with its own restrictions on duration and remuneration.
For most employers hiring foreign talent into a substantive role, the Employment Visa is the relevant category.
Sponsoring an Employment Visa: what the employer must do
Sponsorship is not a passive act. When an Indian company sponsors an Employment Visa, it takes on formal accountability for the employee's stay.
The sponsoring employer must issue an invitation and sponsorship letter on company letterhead, confirmed by an authorised signatory. The letter should state the role, the salary, the duration of employment and the employer's registration details. The foreign national then applies at the Indian Embassy or High Commission in their home country, supported by this letter along with their passport, photographs, proof of qualifications and a copy of their employment contract.
Once the visa is approved and the employee arrives in India, there are immediate compliance steps:
- The employee must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival if the visa duration exceeds 180 days. This is done online through the e-FRRO portal.
- The sponsoring employer is expected to report the employee's arrival and, later, their departure or change of employer.
- If the employee changes jobs, a fresh visa or visa endorsement is generally required — the Employment Visa is tied to the sponsoring employer, not the individual's profession.
Failing to complete FRRO registration is one of the most common compliance gaps, and it falls on both the employee and the employer to ensure it happens.
Tax and payroll obligations for sponsored employees
A foreign national on an Employment Visa who is working for and being paid by an Indian entity becomes subject to Indian income tax based on their residency status under the Income Tax Act. Residency status is determined by the number of days spent in India, not by visa category or nationality.
Once an employee is tax-resident in India, they fall within the standard income tax framework. The new regime has slabs rising to 30%, with a section 87A rebate for lower incomes and a 4% health and education cess. The employer must deduct TDS from salary, issue Form 16 at year end and file Form 24Q quarterly — the same obligations that apply to Indian employees.
Provident Fund contributions — 12% from the employee and 12% from the employer — may also apply depending on whether the foreign national is covered under a social security agreement (called a Totalisation Agreement) between India and their home country. India has such agreements with several countries; if one exists, the employee may be exempt from Indian PF contributions and continue contributing only in their home country. This is worth checking before payroll is set up.
ESI applicability follows the standard wage threshold rules. For how Mellow runs payroll across six countries on one platform, these cross-border nuances are handled as part of the payroll setup.
Practical considerations before you hire
A few things that often catch employers off guard:
Lead time is real. Visa processing times vary by country and consulate. Budget several weeks at minimum, and do not ask the candidate to resign or relocate until the visa is in hand.
The Labour Codes apply. India's four consolidated Labour Codes, in force from 2025, apply to employment relationships in India regardless of the nationality of the employee. Foreign nationals on Employment Visas have the same statutory entitlements as Indian employees under applicable laws — leave, working hours, gratuity after five years of service and so on.
Document retention matters. Keep copies of the visa, FRRO registration certificate and any renewals in the employee's personnel file. In an inspection or audit, these documents will be the first thing asked for.
Renewals need advance planning. Employment Visas are typically issued for one year initially and can be renewed, but renewal requires fresh documentation from the employer. Build this into your HR calendar well before expiry.
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