Working for a US company from India

[r2india_4_29]

Hi,

Question about working for a US based public company in India.
I work at a public company in US and want to continue work for the same
company in India. I am US citizen and will be moving back to India.
The US based company does not have India presence.
What should I do?


Thanks,

[knowledgeable]

What's the problem?

If you want to continue working for the American company in India, then go ahead and do it.

Your American company will have to establish their operations in India as per the Indian rules and regulations and they can post you to that office.

Take care.

[txh1b]

If you are a US Citizen and do not have anything to do with India or origin is not from India you need a work visa to work from India.

“EMPLOYMENT VISA: Employment visas are initially issued for one-year
stay. A copy of the contract with the employer has to be enclosed.
Kindly note that Employment Visa is given only for jobs that require
very high level of skills and expertise. This can be extended by
Foreigners Regional Registration Office in India, if the job contract
continues. Spouses and children are granted co-terminus entry visas on
request.”
/india-visa/

[rishit9999]

On H1B:Can I work for US company from India?

I am on H1B currently with US employer. Have decided to move back to India for good. Can I continue working for my current US employer from India and receive US Salary?I intend to work from home. Are there any legal issues with this? My H1 B(6 year limit) gets over next year in august 2011 and I haven't filed for Green Card etc. My company only has sales offices in India but no IT office.
In one thread I read that visa is only required if you are in US but since I would be working from India, H1B status doesn't matter. The question then is: How will my US employer continue to employ me?
I would really appreciate if you can shed some light on this and other possible options..like I would ve to quit from here and then can work from India as contractor etc

Regards
Rishit

[sk4ih]

If they have office in India, why don't you want to be paid in Indian salary?

[rishit9999]

On H1B:Can I work for US company from India?

My company only has a Sales Office but not an IT development office so a transfer is not looking feasible. Also, what would be the advantage of receiving Indian salary 1) it might not be as much as I am getting here since pay scales are pretty different in India, b) with Double tax avoidance treaty I would be paying tax only in US or India and not both I assume. So if I get paid in USD and taxed in US, I still will be getting a much higher pay in USD. c) I don't want to leave current US company since I ve been with them for some time and want to stay with them.

So, now, with my current H1B status, is it possible to work from India with a US employer?
Another issue is, I won't be an NRI anymore once I return. So, whether the Indian rules allow an Indian resident to work for an overseas employer ?

Someone suggested that one might need to open his/her own company and then work with the US company and get paid in USD in the company account. The earnings then come to you since you are the proprietor but through the company. Again, that means quitting the US company and then becoming a Contractor for them which is not my first choice .

-Regards
R

[sk4ih]

You should pay tax on your global income in India. So you can't avoid tax.

If they have office in India, that means it's registered legal company in India, so they can recruit you and pay in India.

I don't understand what you mean by it has only Sales office. Why does it matter what dept they have?

If you still find it's advantage getting US salary, you can go ahead.

[rishit9999]

On H1B:Can I work for US company from India?

Thank you Sir for this quick reply. My response is inline and would appreciate to bring this to closure with a few more answers.

You should pay tax on your global income in India. So you can't avoid tax.
[R] I will be taxed in US itself,so will that not make me eligible to claim tax rebate in India due to the treaty?

If they have office in India, that means it's registered legal company in India, so they can recruit you and pay in India.
[R] My calculation was: say a person gets USD100K ~ 45Lac INR. I am sure that not many companies in India would be willing to pay 45L INR in sal

I don't understand what you mean by it has only Sales office. Why does it matter what dept they have?
[R] I am in the Asset Management division. Legal and Compliance issues sometimes prohibit a person in one department being transferred to another one. The cost center matters. The sales office might not have a mandate to increase head count in India but Asset Management might have. So inter department problems happen.

If you still find it's advantage getting US salary, you can go ahead.
[R] So, its legal from both US and India perspective. A US employer can have a H1B employee working from India. My H1B will expire (6 years) next year. Does my H1B have anything to do with my job once I move back to India. Like, after it expires next year, I won't be able to work for this employer??
AND
as an Indian, I can legally work from India for an Overseas US employer.

[sk4ih]

1. You will be taxed in India too. India doesn't mind where else you pay tax while residing in India.

2.

3. By saying that I didn't mean you should work in Sales Office. All I said is that if your company is registered in India, they can recruit in India and pay in India. But anyway, its doesn't matter here to answer your question.

4. H1 or any status has a meaning when you're physically present in US. When you're out of USA, they don't care. But because you're paid for working for US company, you need to pay tax in US. This is more of tax issue than H1 issue.

Maybe you can consult immigration and tax experts.

[alpaahdi]

I agree with sk4ih. I feel like your situation is really complicated and has many areas in which you can face problems, mostly tax related but some immigration related consequences as well. Your best bet would be to work with a professional to try and achieve your goals in India. I would suggest going on avvo.com and researching some immigration and tax attorneys.

[digitally1]

Any updates?

Rishit, What did you end up doing? I've similar situation now and I need to take action very soon.

[sarathgj]

What happened?

Can you guys tell em what you decided and if all things went smoothly for you. I could be in the same situation in a few days...Any precursors will be very helpful