Relocation to India: Legal Requirements and Practical Steps

TL;DR

For decades, India’s foreign national framework was a patchwork. Colonial-era statutes. Paper-heavy processes. Local officer discretion could make or break timelines. If you were relocating talent, you needed patience and a strong legal stomach.

That era is over.

As of late 2025, the Immigration and Foreigners Act consolidated over a century of scattered rules into a single, centralized mandate governing entry, stay, movement, and enforcement. No more juggling the Foreigners Act, the Passport (Entry into India) Act, and the Registration of Foreigners Act like you’re assembling a legal jigsaw puzzle.

Now everything flows through one digital spine.

If you’re a relocating executive or corporate strategist, this isn’t just a compliance tweak. It’s a structural shift.

India has moved to a centralized, digital-first immigration architecture. And that architecture is wired directly into labor, tax, and enforcement systems. Immigration isn’t an isolated process anymore. It’s part of a monitored ecosystem.

You can absolutely operate here. You can scale here.

But you can’t wing it here.

The 2025 Immigration Overhaul: A Unified Strategic Framework

The old system worked. Slowly. Inconsistently. Often unpredictably.

Local Foreigners Registration Officers had wide discretion. Documentation was paper-heavy. Processing delays were common. Enforcement was uneven.

The Immigration and Foreigners Act ended that fragmentation.

In its place sits the Integrated Immigration Management System. A centralized digital repository that replaced the older Immigration, Visa, and Foreigners' Registration & Tracking system infrastructure.

What does that mean in practice?

It means your employees:

• Visa status

• Biometrics

• Residential address

• Registration history

• Compliance timeline

are no longer siloed across local offices.

They’re visible.

And coordinated by the Bureau of Immigration at the national level.

This is not a cosmetic reform. It’s a shift toward high-accountability governance.

If you comply, the system is faster and cleaner.

If you don’t, the system notices.

The 14-Day Rule, And Why It Matters

Under the legacy framework, registration timelines could vary depending on interpretation and location.

That ambiguity is gone.

Under the 2025 Act, foreign nationals must register with the appropriate Registration Office within 14 calendar days of arrival, unless the visa endorsement specifies otherwise.

Fourteen days.

Not “whenever you get around to it.”

Not “after onboarding week.”

And this is backed by enhanced biometric capture. Authorities can record fingerprints and facial data not only at entry points, but during the stay itself.

The message is clear.

India wants foreign professionals here. But it also wants traceability.

What This Means for Companies Relocating Talent

If you’re moving executives, engineers, or senior operators into India, you’re operating inside a transparent compliance grid.

This isn’t about fear. It’s about alignment.

Immigration is now directly interconnected with:

Labor registration

Corporate filings

Tax identifiers

Financial systems

If something doesn’t match, it surfaces.

That’s the real shift.

Previously, immigration compliance could sit in a corner, managed reactively.

Now it’s an integrated infrastructure.

So success in this environment isn’t just filing forms correctly. It’s understanding that India’s digital stack is interconnected by design.

Legislative Milestone	Primary Objective	Key Impact for Foreign Nationals
Immigration and Foreigners Act, 2025	Consolidates legacy laws from 1920, 1939, 1946, and 2000	Establishes a unified, digital-first legal framework for stay and movement.
Immigration and Foreigners Rules, 2025	Operationalizes the Act with specific reporting protocols	Mandates real-time reporting by employers and accommodation providers.
Integrated Immigration Management System	Replaces IVFRT with a centralized data repository	Streamlines visa processing and eliminates paper-based friction in registration.
Expanded BOI Mandate	Codifies the Bureau of Immigration’s coordination power	Increases enforcement consistency across different Indian states.

Visa Taxonomy and the Strategic Selection of Entry Channels

India now operates a hybrid visa regime.

Short-term entry is easier and more digital.

Long-term residence is more monitored and tightly structured.

The system is designed to encourage investment and skilled relocation while aggressively filtering misuse.

The Employment Visa ("E" Visa) and the Skilled Labor Floor

The “E” Visa remains the core pathway for foreign professionals relocating to India.

It applies strictly to individuals:

• Taking up employment with an Indian entity

• Working on India-based projects

• Receiving compensation linked to Indian operations

The Skilled Labor Salary Floor

A key feature is the minimum salary threshold:

$25,000 USD per year (standard rule).

This is intentional policy design. India wants:

• Highly skilled specialists

• Not general labor displacement

Exceptions are rare and limited to niche categories like:

• Ethnic cooks

• Language teachers

• Staff of diplomatic missions

If your compensation does not meet the threshold, your application will likely fail.

The Business Visa (“B” Visa)

The Business Visa is for:

• Board meetings

• Investor discussions

• Market exploration

• Establishing contacts

It is not for employment.

The 2025 framework sharpened enforcement around what is called the “purpose limitation” rule.

If you:

• Earn income in India

• Manage daily operations

• Perform ongoing work

On a Business or Tourist Visa, you risk:

• Immediate deportation

• Entry ban

• Corporate scrutiny

Immigration officers are now trained to detect inconsistencies between declared purpose and real activity.

Do not gamble here.

Specialized and Emerging Visa Tracks

To reflect India's growing importance in specific global sectors, the Ministry of Home Affairs introduced several specialized visa tracks in 2025:

• e-Production/Investment Visa: Launched in December 2025, this category is designed to facilitate entry for foreign nationals involved in large-scale manufacturing and infrastructure projects linked to the government's investment incentives.

• The Student Visa ("S" Visa): This is strictly a "license to learn, not to earn". Foreign students are prohibited from taking up any form of employment, including part-time work or internships, unless the internship is an explicit, mandatory requirement of their academic curriculum.

• The Research and Journalist Visas ("J" Visa): These remain among the most scrutinized categories, requiring specific permission from the FRRO for any academic research or journalistic activity. For activities involving mountaineering or travel to "Protected/Restricted Areas", such as parts of Kashmir or the North Eastern states, additional special permits are required regardless of the primary visa type.

Entry Protocols and the e-Arrival Mandate

Effective October 1, 2025, the Ministry of Home Affairs introduced the e-Arrival Card, which replaces all paper-based arrival forms. All foreign nationals are statutorily required to complete this digital protocol within 72 hours prior to boarding their flight to India. This card is integrated into the Integrated Immigration Management System, allowing the Bureau of Immigration to pre-screen arrivals and expedite the biometric capture process at the port of entry.

Visa Category	Primary Purpose	Key Statutory Requirement	Stay Restrictions
Employment ("E")	Professional roles in India	$25,000 USD minimum annual salary.	Linked to a specific corporate sponsor.
Business ("B")	Commercial meetings, exploration.	Cannot be used for localized employment.	Capped visits; no "earning" permitted.
Student ("S")	Academic studies.	Unconditional Letter of Admission required.	Employment is strictly prohibited.
e-Investment	Large-scale manufacturing/projects.	Linked to approved production/investment schemes.	Fast-track processing and long-term validity.
Journalist ("J")	Reporting, media activity.	Rigorous scrutiny of intent and background.	MEA clearance is often required for research.

Corporate Presence Models: The EOR service providers in India vs. Entity Selection

For organizations relocating staff to India, the decision-making process regarding corporate structure has been reshaped by the 2026 Labor Codes and the increasing scrutiny of "Permanent Establishment" (PE) risks. The choice between a local legal entity and an Employer of Record (EOR) involves a trade-off between operational control and speed-to-market.

Employer of Record (EOR) in India

An EOR services in India as the legal employer of a company's Indian workforce, assuming all responsibility for payroll, taxes, and labor law compliance, while the foreign company maintains day-to-day functional control. In the 2025-2026 landscape, the EOR has become the default choice for companies testing the Indian market, building remote tech teams, or hiring fewer than 20-30 employees.

The primary advantage of the EOR model is the transfer of compliance risk. Indian labor laws are notoriously complex, with mandatory filings for the Employees' Provident Fund (EPF), Employee State Insurance (ESI), and Professional Tax (PT). Furthermore, the timely deposit of Tax Deducted at Source (TDS) is a criminal liability in India; failure to comply can lead to the arrest of company directors. By using an EOR that already possesses the necessary local infrastructure and regulatory expertise, a foreign firm creates a "legal firewall" that shields its global executives from these personal liabilities.

The Local Entity (Wholly Owned Subsidiary): Scale and Ownership

Establishing a local entity, typically a Wholly Owned Subsidiary (WOS), is a resource-intensive process that can take 12 to 16 weeks. This route is generally reserved for organizations scaling beyond 50-100 employees, those planning to establish physical manufacturing facilities, or those requiring local tax optimization for domestic sales. The setup involves high upfront costs, ranging from $8,000 to $15,000, and requires a resident director and a physical office for GST registration and bank account opening.

A critical consideration for the local entity model is the creation of a Permanent Establishment (PE). By establishing a registered subsidiary, the foreign parent company signals a long-term commercial intent, which subjects its local operations to full corporate taxation and rigorous transfer pricing audits.

Factor	Employer of Record (EOR)	Local Entity (WOS)
Setup Time	1 to 5 business days	3 to 4 months.
Capital Requirement	No minimum capital required.	₹1 Lakh ($1,200) practical minimum.
Compliance Load	Managed entirely by the EOR	Full internal HR/Legal/Finance team required.
PE Tax Risk	Significantly minimized	High (PE created by default).
Monthly Cost	$300 to $800 per employee	High fixed overheads for filings and audits.
Primary Benefit	Speed and Risk Mitigation	Total Control and Long-term Brand Presence.

The 2026 Labor Codes: Navigating the New Social Security Paradigm

Social Security Component	Requirement	Applicability
Provident Fund (EPF)	12% Employer + 12% Employee contribution	Establishments with 20+ employees.
State Insurance (ESI)	3.25% Employer + 0.75% Employee contribution	Employees with monthly gross below ₹21,000.
Gratuity	15 days' wages per year of service.	5 years for permanent; 1 year for fixed-term.
POSH Act	Internal Complaints Committee (ICC) formation	Mandatory for workplaces with 10+ employees.
Professional Tax	State-specific monthly deduction.	Varies by state (e.g., MH, KA, TN).

The FRRO and Residence Monitoring Ecosystem

For a foreign national relocating to India, the port of entry is only the first stage of a multi-layered monitoring process. The 2025 Act places a significant burden on both the individual and their host to ensure that residency is documented in real-time.

FRRO Registration: The 14-Day Mandatory Window

Any foreign national staying in India for more than 180 days, whether on an employment, student, or research visa, must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival. This process is now predominantly online via the e-FRRO portal, which facilitates the submission of documents such as the employment contract, proof of residence, and an undertaking letter from the Indian sponsor.

The registration certificate issued by the FRRO is not just a travel document; it serves as a foundational proof of identity and address within India. It is required for opening bank accounts, applying for a PAN card, and even obtaining a local mobile connection. Failure to register within the specified timeframe can lead to a penalty of approximately $300 USD and, more critically, may result in the denial of visa extensions or the issuance of an exit permit when the individual eventually wishes to leave the country.

Form C and the Responsibility of Hosts

Under the 2025 rules, every accommodation provider—whether a hotel, a guest house, or a private landlord- must notify the authorities of a foreign guest's arrival within 24 hours. This is achieved through the submission of Form C on the centralized portal. For a relocating professional living in a leased apartment, the landlord is technically the "keeper of accommodation" and is responsible for this filing.

This real-time reporting mechanism serves as a preliminary requirement for FRRO registration. The system is designed to ensure that the Bureau of Immigration has a constant record of a foreign national’s location. Consequently, any change of address during the stay must be updated on the e-FRRO portal within 48 hours to avoid a breach of visa conditions.

Exit Permits and Departure Protocols

Unlike many jurisdictions where departure is a simple matter of checking out at the airport, India requires certain categories of foreign nationals to obtain an Exit Permit. This is particularly relevant for those who have overstayed, those whose visas have been cancelled, or newborns born in India to foreign parents. The 2025 Rules also mandate that foreign nationals must ensure their departure is reported to the Registration Officer before they leave, especially if their stay was registered via Form C. This ensures that the individual's digital record is correctly "closed" in the national system.

Financial Integration: PAN, Banking, and the UPI Revolution

The financial landscape for expatriates in India has undergone a digital revolution, moving from a cash-heavy economy to one dominated by the Unified Payments Interface (UPI).

The Permanent Account Number (PAN) Card

The PAN card is a mandatory tax identification number issued by the Income Tax Department. It is the single most important document for a relocating professional, as it is required for receiving a salary, paying taxes, renting property, and making high-value purchases. The application process is available online but necessitates the submission of a valid passport, visa, and proof of address. In the 2025 regime, the PAN is increasingly linked to Aadhaar for those who qualify as residents.

Opening a Local Bank Account

Most Indian employers require a local bank account for salary disbursement. Major private banks like HDFC, ICICI, and Axis have dedicated expat desks to handle the complex KYC requirements. To open an account, a foreign national typically needs their passport, Employment Visa, FRRO registration certificate, PAN card, and proof of Indian address.

For non-residents, specific account types are available:

• NRE (Non-Resident External) Account: Used for funds earned outside India; fully repatriable.

• NRO (Non-Resident Ordinary) Account: Used for managing income earned within India (like rent or salary); subject to specific repatriation limits.

UPI: The Gateway to Modern Indian Life

India’s UPI system allows for instantaneous, QR-code-based payments via smartphone apps like Paytm, PhonePe, and Google Pay. Since 2023, the National Payments Corporation of India (NPCI) has expanded access to UPI for foreign nationals and NRIs. Expatriates with a local bank account and an Indian SIM card can use UPI seamlessly for everything from utility bills to street-side purchases.

For short-term visitors or those in the initial stages of relocation without a local bank account, the UPI One World wallet was introduced. This is a prepaid instrument that can be funded using international credit or debit cards at currency exchange booths in major airports. It allows foreign nationals to participate in the UPI ecosystem immediately upon arrival, eliminating the need to carry large amounts of cash.

Financial Instrument	Purpose	Requirement
PAN Card	Mandatory tax identification	Passport, Visa, Proof of Address.
NRE/NRO Bank Account	Local salary and fund management	PAN card, Passport, FRRO Certificate.
UPI (Standard)	Instant mobile payments	Indian bank account and a linked Indian SIM.
UPI One World	Prepaid wallet for tourists/visitors	Passport and Visa for KYC at the airport.
Aadhaar Card	Identity system for residents	182-day stay in the last 12 months.

The Aadhaar Resident Requirement: Navigating the 182-Day Rule

Aadhaar is a 12-digit unique identity number issued by the Unique Identification Authority of India (UIDAI). Unlike a visa or passport, which are citizenship-based, Aadhaar is residency-based. Under the Aadhaar Act, only a "resident" is entitled to enroll, defined as an individual who has resided in India for 182 days or more in the 12 months immediately preceding the date of application.

For a relocating professional, the 182-day rule means that Aadhaar enrollment is typically only possible six months after arrival. While Aadhaar is not strictly mandatory for all foreign nationals, it is highly recommended for long-term residents as it dramatically speeds up the KYC process for banking, property registration, and obtaining government services. For those who reach tax residency status, linking the PAN to Aadhaar becomes a mandatory requirement to keep the PAN active and avoid tax penalties.

The Aadhaar issued to foreign nationals (excluding OCI cardholders) has a limited validity period that typically matches the expiry date of their visa. For OCI cardholders and nationals of Nepal or Bhutan, the card is usually valid for ten years.

Housing and Relocation Logistics: Leases and "Micro-Bubbles"

The housing market in Indian metropolitan hubs like Mumbai, Bangalore, and Delhi NCR is characterized by high demand and specific contractual norms.

The 11-Month Rental Agreement vs. Registered Lease

In most Indian cities, the 11-month rental agreement is the standard practice. This specific duration is a strategic choice to avoid the mandatory registration requirement of Section 17 of the Indian Registration Act, which applies to any lease exceeding 12 months.

• 11-Month Agreements: These are typically notarized rather than registered, saving both parties significant stamp duty and registration fees. They offer high flexibility for relocating professionals who may need to move for work or personal reasons within a year.

• Registered Leases: These are mandatory for stays longer than a year and provide stronger legal protection in court. The stamp duty for a registered lease can be significant, ranging from 1% to 5% of the annual rent, depending on the state.

For expatriates, the choice between these two often depends on the level of stability required. A registered lease is generally preferred for families settling into long-term residences or for commercial spaces, while the 11-month agreement is ideal for individuals testing a new city or neighborhood.

Living in the "Expat Micro-Bubble"

Expatriate life in India often revolves around "micro-bubbles", gated communities that offer a higher standard of infrastructure, including backup power, water storage, and enhanced security. Neighborhoods such as Bandra in Mumbai, Indiranagar in Bangalore, and DLF Phase V in Gurgaon are popular due to their proximity to business districts and international schools.

Relocating professionals must account for the logistical challenges of Indian urban life, particularly traffic congestion and air quality. The "AQI" (Air Quality Index) in cities like Delhi can reach hazardous levels during certain months, leading many expatriates to invest in high-end air purification systems for their homes and offices. Furthermore, the reliance on "hired help" (domestic staff for cooking and cleaning) is a standard part of the Indian lifestyle that many find essential for managing daily household functions.

Cultural Nuances and the Management of Indian Talent

Successful relocation involves more than administrative mastery; it requires a high degree of cultural intelligence (CQ). Managing an Indian workforce requires navigating a unique blend of high power distance, relationship-driven trust, and the colloquial philosophy of "Jugaad".

Hierarchy and the "Yes" Culture

India is characterized by a "high power distance," where seniority and job titles carry significant weight. Decisions are typically made at the top, and junior staff may be hesitant to challenge a superior in an open meeting. This often manifests as a "Yes" culture, where employees agree to a request or a deadline simply to show respect or avoid "loss of face," even if the task is impossible to complete.

Foreign managers are advised to "read between the lines" and look for subtle cues that indicate potential roadblocks. Instead of relying on a simple "Yes," it is more effective to ask open-ended questions about the implementation plan or to seek status updates through private, one-on-one conversations where employees feel safer discussing challenges.

Relationship-Driven Business and "Jugaad"

In the Indian context, professional relationships are inseparable from personal ones. Building trust requires time spent outside of formal meetings, often over meals or social events. Networking is viewed as the foundation of professional life, and a strong personal bond can often overcome bureaucratic hurdles that would otherwise stall a project.

Founders should also be aware of "Jugaad", the Indian art of finding low-cost, innovative solutions to complex problems with limited resources. While this mindset fosters incredible creativity and agility in a startup environment, it can sometimes clash with Western preferences for standardized, repeatable processes. Balancing this local ingenuity with global operational standards is a key challenge for any relocating leader.

The Strategic Exit: Dissolution and Winding Up

Relocation strategy must always include a contingency for market exit. Closing an Indian legal entity is a regulated and often protracted process that requires strict adherence to the Companies Act and FEMA (Foreign Exchange Management Act) guidelines.

Winding-Up Mechanisms

The 2025 landscape provides three primary methods for closing a company:

1. Strike-Off (Form STK-2): The most efficient route for companies that have had no operations for at least one year and have zero liabilities. This process typically takes 3 to 6 months.

2. Voluntary Winding Up: Required for companies with assets and liabilities. It involves appointing a liquidator to settle dues and can take 6 to 12 months.

3. Compulsory Winding Up: A tribunal-led process often resulting from insolvency or legal defaults, which can extend beyond 24 months and involve high legal costs.

Repatriation of Funds and Final Clearances

Before a foreign entity can formally exit India, it must obtain an Income Tax Clearance Certificate and settle all employee dues, including Gratuity and final payroll. The Reserve Bank of India (RBI) allows for the repatriation of the remaining funds only after all statutory liabilities have been cleared. Failure to follow these exit protocols can lead to the "blacklisting" of the foreign parent company and its directors, preventing them from future business activities in India.

Closure Method	Estimated Timeline	Complexity/Requirement
Strike-Off (STK-2)	3 to 6 months.	No business operations for 1+ years; no liabilities.
Voluntary Winding Up	6 to 12 months.	Appointment of a liquidator; settlement of assets.
Compulsory Winding Up	12 to 24+ months.	National Company Law Tribunal (NCLT) litigation.
Final Tax Clearance	Ongoing during closure.	An Income Tax Clearance Certificate is required for fund repatriation.

Conclusion: Strategic Synthesis for Relocation

The Indian relocation landscape in 2026 is defined by a shift from administrative opacity to digital transparency. The 2025 Immigration and Foreigners Act has created a unified framework that streamlines the entry process through e-Arrival cards and biometric integration, but it has simultaneously increased the burden of real-time residence monitoring via the e-FRRO and Form C ecosystems.

For organizations, the choice of a presence model—balancing the speed and risk mitigation of an EOR against the control and scale of a local entity—remains the most critical strategic decision. This choice is now further complicated by the 2026 Labor Codes, which mandate a 50% basic wage structure and expanded social security liabilities, requiring a total recalibration of compensation budgets.

Success for the relocating professional is found at the intersection of technological adaptation and cultural agility. Mastering the UPI-driven financial stack and navigating the 182-day Aadhaar rule are essential for practical integration, while understanding the nuances of hierarchy and relationship-driven business is vital for professional efficacy. Despite the logistical challenges of urban infrastructure and bureaucracy, the ability to actively participate in India's unprecedented growth trajectory offers a compelling value proposition for those prepared to navigate its new regulatory reality.

Frequently Asked Questions

1. What is the impact of the "50% Wage Rule" in the 2026 Labor Codes?

One of the most significant changes is the new definition of "wages." At least 50% of an employee's total remuneration must now be classified as "basic pay."

• The Impact: Employers can no longer heavily load "allowances" (like HRA or travel) to reduce their Social Security (Provident Fund) liability. This shift typically increases employer contribution costs by 20–40%.

2. Is the "USD $25,000 Salary Threshold" still in place for Employment Visas?

Yes. To sponsor a foreign national for an Employment (E) Visa, the employee must earn a minimum annual salary of USD $25,000 (roughly ₹21 Lakhs).

• Included: This includes basic pay and cash allowances (like rent-free accommodation) that are taxable.

• Excluded: Voluntary bonuses or perquisites not included in tax calculations are generally excluded from this threshold.

3. What is the mandatory FRRO registration timeline?

Foreign employees staying in India for more than 180 days must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival.

• Practical Tip: Failure to register on time can lead to heavy financial penalties and may prevent the employee from leaving the country in an emergency.

4. How do the new codes treat "Fixed-Term" employees?

Under the Industrial Relations Code (2020), fixed-term employees are now legally entitled to the same wages, hours, and social security benefits as permanent employees. Crucially, they are now entitled to pro-rata gratuity after just one year of service, whereas permanent employees typically require five years.

5. What are the mandatory Social Security contributions for 2026?

The contribution rates remain a cornerstone of Indian employment law:

• Provident Fund (EPF): Employer contributes 12% of basic wages.

• Employee State Insurance (ESIC): Employer contributes 3.25% for employees earning below the threshold (currently ₹21,000/month).

• Gratuity: Employers must pay 15 days' salary for every year of service (calculated on the new, higher 50% wage base).

6. Do I need to issue "Physical" Appointment Letters?

While the 2026 codes allow for digital record-keeping, the Occupational Safety, Health and Working Conditions Code makes it a statutory obligation to issue a formal Appointment Letter to every employee. In 2026, this letter must be registered or uploaded to the unified labor portal for compliance tracking.

7. What is the "National Floor Wage" introduced this year?

The Central Government now sets a National Floor Wage. While individual states (like Maharashtra or Karnataka) can set their own minimum wages, they cannot be lower than this national floor. Employers with teams across different states must ensure they meet the specific minimum wage notifications for each region.

8. Are there new rules for women working night shifts?

Yes. The 2026 codes officially allow women to work night shifts (7:00 PM to 6:00 AM) in all sectors, provided the employer ensures:

• Written Consent: The employee must agree in writing.

• Safety Measures: Mandatory provision of safe transport and adequate workplace security.

9. Can I use an "Employer of Record" (EOR) to avoid local entity setup?

Yes. EOR services are extremely popular in 2026 for foreign firms testing the Indian market. The EOR acts as the legal employer, managing the complex new labor code filings, PAN/TAN registrations, and GST compliance, while the employee works directly for you.

10. What are the new "Decriminalization" provisions for employers?

A welcome change in the 2026 reforms is the shift toward monetary penalties instead of imprisonment for minor or first-time technical non-compliances. However, serious safety violations resulting in accidents still carry potential jail time of up to 2 years.