India Employment Visa: Eligibility, Salary Test and FRRO Rules

By Nagavarapu Sudheer, M.Com., F.C.S., L.L.B., Partner, A2 Consultants

Bringing a foreign manager or specialist to work in India is straightforward when the visa type matches the work, and expensive to fix when it does not. This guide explains who qualifies for an employment visa, what the salary test means, and what has to happen after arrival.

Employment visa or business visa?

A business visa is for commercial visits: meeting clients, negotiating contracts, attending trade events or exploring opportunities. An employment visa is for a person who will work in India under a contract with an Indian entity and be paid for that work. Travelling on a business visa to do what is really employment is one of the most common and risky mistakes. It can lead to cancellation of the visa, penalties and difficulty for the company that hosted the visit.

Who qualifies for an employment visa

Applicants generally need to show that:

• They are a skilled or qualified professional, with relevant education and experience
• They hold a valid employment contract with an Indian company
• Their annual salary is at least USD 25,000, which is roughly ₹16 lakh

A few roles are exempt from the salary test, such as specialist chefs, language teachers and translators, embassy staff and NGO volunteers on a stipend. The conditions are updated from time to time, so confirm the current rules with the Indian mission before applying.

Validity and extension

An employment visa is usually granted for up to one year at first and can be extended, within overall limits set by the authorities. Plan extensions well before expiry, because the application needs fresh supporting documents from the employer.

The usual document set

• A passport with enough validity
• The employment contract or appointment letter stating the role and salary
• Degree certificates and experience letters
• The Indian employer's registration documents
• Photographs and the completed online application form

Processing commonly takes one to two weeks, but times vary by mission and nationality.

Register with the FRRO after arrival

Foreign nationals on long-stay visas who will remain in India for more than 180 days must register with the Foreigners Regional Registration Office within 14 days of arrival. Changes of address must also be reported. Missing this step can lead to fines and complications when extending the visa or leaving the country. The employer should own this task for every foreign employee.

Changing employers or roles

An employment visa is tied to the sponsoring employer and the role. If an employee moves to a different employer, expect to need a fresh visa application, generally made through the Indian mission in the home country. Employees seconded from a group company abroad should confirm the right structure with an adviser, because secondment affects the contract, the salary test and tax.

Points to settle alongside the visa

• Tax residency. The number of days spent in India decides residency, so track them from day one.
• Social security. Check whether a totalisation agreement applies between India and the employee's home country.
• Payroll. Decide the salary structure, withholding and any split between Indian and foreign payroll.
• Employer readiness. The Indian entity must be incorporated and registered before it can sponsor anyone.

Common mistakes

1. Using a business visa for work
2. Structuring pay so that the taxable salary falls below the threshold on paper
3. Missing the 14-day FRRO registration window
4. Letting the visa lapse without an extension or exit
5. Not updating the visa when the employer or role changes

A2 Consultants helps foreign companies align visas, employment structure and tax for people moving to India.

This article is general information, not legal advice. Visa rules and thresholds change, so confirm the current position with the Indian mission or an adviser before applying.