Trends in expatriate hiring in India

Expatriates and foreign nationals have also been hired in India. Historically, India has not been an attractive destination for expatriates; however, expatriates have been employed for employee training, for technology transfers, or to fulfill joint venture or licensing agreements. Multinational companies, brought in with the liberalization of the Indian economy in the 1990s, also intensified the need for foreign expertise.

Typically, expatriates occupy the upper management ranks in these multinationals. Once foreign firms enter India, they typically bring their own top executives to lead the organization from managing directors or CEOs down to Country Heads. At lower stages, Indian nationals tend to be represented at senior levels of operations, and one would find the General Managers in various units in the departments. In this phased manner, the strategy is often for expatriates to be replaced by Indian managers through internal promotion and career development.

In JVs, foreign as well as Indian partners generally agree to share the key management positions between themselves. Industry and business needs may demand that a Managing Director or Finance Head be a foreign partner and the Indian partner to handle positions like HR. However, more often than not, this insistence stems from the mistrust of both partners rather than on a business need.

Legal Restrictions and Requirements

India imposes no strict restrictions on the number of foreign nationals or skill level that can be recruited, but the government does have certain rules in place. Employment visas are issued only for positions that require special skills. The Registration of Foreigners Act 1939 and the Foreigners Act 1946 detail the law regarding the registration, movement and departure of foreign nationals in India. Absolute rights for the government to regulate the inflow of foreign workers and this is further reigned by the Foreigners Order 1948.

Foreign nationals must have written permission from authorities in order to work on such utility works like electricity, water and petroleum, or on any other works specified by the government under this order.

Visa and Employment Conditions for Expatriates

Expatriates can be employed by an Indian company if these companies comply with the following conditions:

The employer shall provide a contract and other papers to help the foreign national apply for an employment visa.

They must sponsor the foreign worker and his or her dependents for registration with Indian authorities.

Indian companies must have records of foreign and Indian employees, split by levels of salary.

Employment Visa

Foreigners must enter India on an employment visa. Employment visas are issued only for occupations that are highly technical in nature. The necessary documents include a valid passport, proof of employment, and terms and conditions of the employment contract.

Processing Time Employment visa applications are cleared on the day of submission. Applications submitted outside of the applicant’s local jurisdiction take more than five working days to process.

Length of Stay and Renewals

Employment visas are issued for 15 years, as it depends on the character of employment, scarcity of the Indian national professional in the same field, and other factors. The foreign nationals need to apply with the FRRO beforehand, before the visa expires, to extend their stay. The visas cannot be extended through the consulates abroad.

Family and Dependents

Their family members will also have to apply for an entry permit. If they wish to work in India, they need to obtain an employment visa. Children intending to attend school there will require a student visa.

Registration of Foreign Workers

Foreign workers who stay in India for more than 180 days with their dependents are required to register with the FRRO within two weeks of their arrival. In smaller towns, this process is taken care of by the Office of the District Superintendent of Police. US nationals, with ten year tourist/business visas and some other categories of foreign nationals are exempt from registering if their stay is less than 180 days per visit.

Documents Required for Registration  

For getting yourself registered foreign employees require the following documents. 

• Copy of employment contract 
• Undertaking from employer
• Arrival Report from prescribed authority

Residence Permits

When the foreign national registers, the FRRO issues a Residence Permit that also serves as a valid work permit. This residence permit issued after an employment visa also enjoys the same validity period. Residence permits are renewable from time to time but the “Registration” is required only once in the validity of the visa, even if the person departs and re enters India several times.

Managerial appointments (Managing Directors or Partners in a JV) will also require additional documents, to wit: government approval and contracts.