Acumen International stands with Ukraine and the country's people. Join us

Employ Candidates Compliantly in India

Get Express Quote
  1. Overview: India
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Visa, work permit & immigration support
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
  7. Global Payroll Calculator
Other counrtries

Global PEO and Payroll in India

If you’re considering expanding your business into new markets, it’s essential to understand that every expansion is different. Various factors can impact your compliance obligations, risks, and budget, including home- and host-country laws, the nature of your activities, and your goals and risk tolerances. By learning about these factors, you can set your business up for success in its new venture.

Get Express Quote

Global Employment Challenges and Pitfalls to Avoid 

When hiring a staff to work overseas, some challenges come far beyond the nuts and bolts of finding and vetting candidates. Companies often overlook these challenges when they think only of locally-hired employees but they can have extreme consequences for businesses that employ people internationally.

Why is this? Because if you’re not careful, you might find yourself unwittingly breaking one employment law regulation or another in your new country. This could lead to fines, other legal issues, and negative public exposure for your brand. It’s not just about being bad for your business, though; it’s also about being bad for the people who work in your company.

Employment Taxes in India

There are many different types of taxes that businesses have to pay, but employment taxes are one of the most important. These taxes can vary significantly from country to country and can be a large portion of a monthly salary.

In-country Employee Registration

It is essential to ensure that employees are properly registered with the local authorities before they start work. Failing to do so can result in penalties for both the employee and the employer.

Payroll Calculations: Country-specific Requirements

In many countries, payroll calculations vary significantly. For example, employees in some countries may receive a 13th and 14th-month salary halfway through the year or at Christmas as standard. Thus, it’s important to be aware of the payroll practices in your country of employment.

Some countries have different rules when it comes to employment contracts. To avoid any surprises, it is crucial to understand how payroll calculations work in your new country. In some cases, you may be responsible for paying your employees for the entire contract duration even if they are not performing as expected or you want to end their employment early. This can be a financial shock to foreign employers who are not used to this practice.

For this reason, it is essential to ensure that you review and understand the terms of the employee’s contract before hiring them, so you know what to expect.

End of Financial Year Reporting

The financial year for many countries ends in March, and companies with a presence in more than one country need to produce financial reports for each country and send them to the relevant government bodies. With the end of the financial year approaching, accountants are busy preparing reports, some of which can be complex and difficult to navigate as they may be on foreign websites with little or no English language support. You must get these reports lodged on time as it could result in late payment penalties.

A lot of these reports need to be completed in the local language, so it is recommended that you use an accountant specializing in the country you are based in to ensure compliance before lodgement deadlines.

This is why many companies outsource payroll management to a global Professional Employer Organisation (PEO) as they have experts with deep knowledge of local labor laws and tax regulations in each jurisdiction. In such cases, a Global PEO will ensure compliance with local employment and tax requirements.

Local Employment Contracts Compliance

As an employer, it is crucial to have local employment contracts that comply with the law of the jurisdiction where your employees work. These contracts should be provided in both English and the local language. Do not simply copy and paste your existing contract template from your home country – this could result in non-compliance and serious legal consequences.

When recruiting employees for your business, ensuring that their employment contract is appropriate for the country where they will be working is critical. A Spanish employment contract may not be valid in Latin America simply because they are both Spanish-speaking countries.

The language of the employment contract is a crucial detail to keep in mind during the recruitment process, as non-compliance to target country employment laws or any mistakes with the paperwork could cost you money, time, and potentially your business’s reputation.

Employment Contract Termination in India

The employment termination process can be just as important as the hiring process. This part of employment should not be taken lightly as it can have many implications and consequences, both for the employer and the employee. Therefore, it is important to consider all aspects of the situation before deciding.

The start of termination process begins when the employee signs the employment contract. If the termination guidelines are clear and precise from terminating an employee will be much smoother.

When setting out the terms of employment, it is important to be clear about the notice period (making sure it’s aligned with the country-specific regulations), and what is expected in terms of returning company equipment and a credit card or cash float balance. Non-compete clauses protecting your intellectual property are also important considerations. Doing so will help avoid misunderstandings and potential legal problems down the road.

If an employer does not have clear procedures for the termination in their employment contract, they may face litigation. If an employee feels they have been mistreated, they may become disgruntled and contest the termination legally. This can be costly and difficult, especially if the dispute is in another country with a different time zone and language.

Get Express Quote

Simplifying Global Employment with a Professional Employment Organization

Many things can go wrong when you try to find employment overseas. Acumen International can help you navigate these challenges, but it is important to know your potential obstacles.

As a Global PEO, our role is to enable organizations to quickly and easily hire employees in any country. We take care of all the employment-related details so that our clients can focus on their business goals. However, if candidates are unhappy at any stage, the whole arrangement can fail.

When deciding to move abroad for work, your selected candidates consider several factors. The visa and work permit process complexities, currency fluctuations, lifestyle choices, and family considerations can all impact their final decision.

As a PEO, we understand that you must put your employees’ needs first when expanding your business globally. Considering this move’s impact on their lives, it’s important to think outside the box and make sure they are comfortable and supported every step of the way.

“It has become critical for organizations to understand applicable laws and regulations concerning issues such as minimum wages and benefits, employment standards, immigration, and labor relations in each location. A Global PEO can play an important role in helping organizations navigate this complex global employment landscape by offering reliable and country-specific solutions and expert advice on compliance-related matters,” says Nick Ganzha, CEO and founder at Acumen International.

Acumen Global PEO can help you solve the hard puzzle of global employment. As a Global PEO partner, we help businesses meet all their HR needs while also handling compliance issues specific to the international arena. By offering comprehensive global employment solutions and reality checks about the compliance aspects of employing staff across the globe, we can be an important resource for your in-house HR and Management teams.

Get Express Quote

What is a Global PEO?

Are you looking for a hassle-free way to manage your company’s global employment needs? Look no further than a global PEO.  A global PEO (Professional Employer Organization) can offer comprehensive global employment solutions in 190 countries.

Our flexible approach means that we can scale up or down according to your business needs, and we minimize risk by protecting your company’s IP and employees. Delegate global employment responsibilities to us and focus on running your business!

Our Global PEO services include payroll and benefits administration, background checks, immigration support, and more. Quick and easy market entry is guaranteed with PEO – we are your local legal entity, so there is no need to incorporate. Plus, our compliance with all local laws and regulations ensures that you can operate securely and confidently.

Acumen International – Your Professional Employer Organization in India

Navigating the Indian legal system and adhering to employment and taxation regulations can be challenging for businesses. Partnering with Acumen International as a global Professional Employer Organization (PEO) provides you with the local knowledge and support you need to conduct business in India without concern for legal and compliance risks.

Whether representing international client companies or taking your business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and ex-pat employees in India. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without the risk of legal repercussions.

Our Global PEO&Payroll Client
Employment risks mitigation
Tax compliance & payroll processing
Incorporation costs no need for own
entities
Effort 90% 10%
Coverage 190 countries 190 countries

Get Express Quote

Global Payroll Calculator: Accurate Global Employment Cost Estimation

When hiring employees and contractors across the globe, you may not choose the most cost-effective and business-friendly country.

  • Do you know which country is the most cost-effective place to hire employees? 
  • What are the costs of entity establishment and legal representation?
  • What are the payroll costs and management fees?
  • What are your ongoing annual tax compliance costs?
  • Are you fully aware of banking implications?
  • Did you know that labor laws and hidden costs could make your company less efficient when choosing a country to run your business? 
  • Did you know that there could be a more cost-effective country to hire employees in and save up to 50%?

This is because countries have different labor laws, compliance, and tax regulations. What if, instead of limiting your company’s international expansion by cutting through the jungle of local regulatory compliance, tax, labor, and immigration requirements, you could have all the information of 190 countries at your fingertips?

Acumen International offers the Global Payroll Calculator to help businesses understand the compliance requirements for conducting business in a new country. Acumen’s research team tracks developments in 190 countries around the globe. It provides up-to-date data on local regulations related to tax, payroll regulations, benefits, hiring practices, compliance requirements, and other labor-related factors that impact an employer’s bottom line. This valuable information makes the Global Payroll Calculator an invaluable tool for businesses looking to expand internationally.

Global Payroll Calculator helps companies reduce labor costs by providing up-to-date information on hiring, compensation, and tax requirements. It is also an ideal tool for quickly locating employees in any country.

Get Express Quote

International Global Payroll and Taxation in India

Employment Taxes in India

Alternate Personal Tax Regime (APTR)

Effective 1 April 2020, an optional APTR, devoid of any deductions or exemptions, has been introduced with lower tax rates spread across six income levels.

Tax Resident Employees in India

Taxation of individuals in India is primarily based on their residential status in the relevant tax year.

Payroll Cycle in India

Every person employed in any railway, factory or industrial or another establishment in which up to 1,000 persons are employed shall be paid before the expiration of the seventh day.

Every person employed in any other railway, factory or industrial or another establishment shall be paid before the expiration of the tenth day after the last day of the wage period in respect of which the wages are payable.

Non-payroll taxes in India

Goods and services tax (GST). GST is an indirect tax, which is a transaction-based taxation regime.

For smooth GST implementation, the government has formed a GST Council. The Council consists of the State Finance Ministers representing their states. The GST Council provides recommendations to the government on various aspects of GST law, such as rate revisions, amendments in GST rules, etc.

Before GST, multiple indirect taxes were leviable on various transactions at each stage separately by the Union Government and the states at varying rates. Such taxes included excise duty, service tax, value-added tax (VAT)/central sales tax (CST), entertainment tax, luxury tax, lottery taxes, state cesses and surcharges, etc. All such taxes (except customs duty) have been subsumed under GST, and one single tax applies to the supply of goods and services. However, a few products continue to be outside the ambit of GST, like petrol, diesel, aviation turbine fuel (ATF), natural gas, and crude oil.

Ready to get started? Request a quote!

Get Express Quote

How Acumen’s International PEO and Payroll Service can Benefit Your Business in India

Compensating your local and ex-pat workforce in India and closely adhering to Indian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.

Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf and take care of all the payroll details while ensuring full compliance with Indian labor and taxation laws.

It is important to note that Acumen does not provide international global payroll services as a standalone solution but only as a part of our global PEO and Payroll solution.

Our comprehensive global PEO and payroll services are just some benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in India by officially employing and compensating your best-selected global talent – locals and ex-pats – without concerns for legal and compliance risks faced by global employers.

Disclaimer: Any of the above information is subject to changes imposed by Indian laws. To get the latest updates on taxation in India and in 190 countries worldwide, contact Acumen’s team of global employment experts.

Ready to Get Started?
Get Express Quote