Intra-Company Transfer Visa to India: Moving Existing Employees

Why Intra-Company Transfers to India Are Different

India has no dedicated intra-company transfer visa — unlike the United States (which has the dedicated L-1 visa) or the United Kingdom (with the Intra-Company Transfer route under the Skilled Worker framework). Every intra-company transferee must instead obtain a standard employment visa, with additional documentation proving the relationship between the overseas and Indian entities.

This makes the process fundamentally different from hiring a new foreign employee in India: the transferred employee already has an established role, institutional knowledge, and often a compensation package that must be restructured for Indian tax and regulatory compliance.

This creates complexity in three areas: immigration (obtaining the right visa with proper documentation), tax (structuring the salary split and avoiding double taxation), and corporate law (ensuring the secondment arrangement does not trigger unintended permanent establishment (PE) risk for the overseas entity). This guide addresses all three.

The Employment Visa Route for Intra-Company Transfers

Why There Is No Separate ICT Visa in India

India's visa framework, governed by the Ministry of Home Affairs (MHA), does not recognise "intra-company transfer" as a distinct visa category. All foreign nationals coming to India for employment — whether new hires or internal transfers — must apply for an employment visa (E-visa). The key eligibility requirements remain the same:

• Minimum annual salary of USD 25,000, the threshold set in the Ministry of Home Affairs' employment-visa guidelines
• Specialised skills not readily available in India
• Sponsorship by a registered Indian entity
• Valid employment contract or appointment letter from the Indian entity

For ICT transferees, however, additional documentation is required to establish the corporate relationship between the sending and receiving entities.

Additional Documentation for ICT Transfers

Beyond the standard employment visa documents, intra-company transferees must provide:

1. Proof of corporate relationship: Documentation establishing that the Indian entity is a subsidiary, branch office, liaison office, or affiliate of the overseas employer. This includes certificates of incorporation of both entities, shareholding patterns, and board resolutions.
2. Proof of prior employment: Evidence of the transferee's existing employment with the overseas parent or affiliate — pay slips, employment contracts and HR confirmation letters. India sets no fixed prior-service qualifying period of the kind the US L-1 route imposes; missions ask for enough to establish that the transfer is genuine.
3. Secondment or transfer agreement: A formal agreement between the overseas entity and the Indian entity detailing the terms of the transfer, including duration, reporting structure, salary split (if any), and repatriation terms.
4. Reference letter from the overseas employer: Stating the applicant's name, passport number, current designation, purpose of transfer, and expected duration.
5. Indian entity appointment letter: A separate appointment or assignment letter from the Indian entity specifying the Indian role, salary, and terms of engagement.

Structuring the Secondment Agreement

The secondment agreement is the most critical document for an intra-company transfer, not just for immigration purposes but for tax and legal compliance. A poorly structured secondment can create PE risk, GST liability, and income tax disputes that cost far more than the transfer itself.

Key Clauses to Include

• Employer of record: Specify clearly whether the Indian entity or the overseas entity is the legal employer during the secondment. The Indian entity should ideally be designated as the employer for the duration to avoid PE risk.
• Reporting and control: The seconded employee should report to and be supervised by the Indian entity's management. If the overseas entity retains operational control, tax authorities may argue that the overseas entity has a PE in India.
• Salary and reimbursement: Define how compensation is structured — whether the Indian entity pays the full salary directly, or whether the overseas entity continues to pay and the Indian entity reimburses. The reimbursement structure has significant tax and GST implications (see below).
• Duration and termination: Standard secondment durations range from 1 to 3 years. Include clear termination and repatriation provisions.
• Intellectual property: Clarify IP ownership for any work created during the secondment, especially for R&D and technology roles.

The PE Risk

The Indian tax authorities look closely at secondment arrangements to determine whether the overseas entity has a PE in India. Under most of India's Double Taxation Avoidance Agreements (DTAAs), a PE can be triggered if the overseas entity exercises control over the seconded employees or if the employees are rendering services to the overseas entity (rather than the Indian entity). For a deeper analysis, see our guide on PE risk from remote employees in India and service PE from sending employees.

Tax Implications of Intra-Company Transfers

Income Tax on the Transferred Employee

A foreign employee transferred to India becomes resident under section 6 of the Income-tax Act, 2025 (section 6 of the Income-tax Act, 1961) on 182 days or more in the tax year (April-March), or on 60 days in the tax year combined with 365 days across the four preceding years. Residence is not the end of the analysis. A newly arriving transferee is normally resident but not ordinarily resident for the first two tax years, and an RNOR is taxed on Indian-source income and on income from a business controlled in India — not on worldwide income. Global income comes into charge only once ordinary residence is reached, and then subject to DTAA relief. Key obligations include:

• Obtaining a PAN (Permanent Account Number). There is no statutory "within 30 days of arrival" deadline, but the employer needs the PAN to deduct and report TDS correctly, so apply as soon as the assignment starts
• Employer deduction of TDS on salary under section 392 of the Income-tax Act, 2025 (section 192 of the Income-tax Act, 1961), at the slab rates in force for the tax year, rising to a top rate of 30% plus surcharge and cess
• Filing an annual income tax return, due 31 July for an individual not subject to audit (section 263 of the Income-tax Act, 2025; section 139 of the Income-tax Act, 1961)
• Claiming treaty relief on the strength of a Tax Residency Certificate from the home tax authority together with Form 41 (formerly Form 10F), and claiming credit for foreign tax paid in the Indian return. Form 145 (formerly Form 15CA) and Form 146 (formerly Form 15CB) are the remitter's forms for a cross-border payment — they are not the route for an employee's treaty relief

The Salary Split Trap

Many multinationals structure ICT compensation with a "split payroll" — part of the salary paid by the overseas entity in foreign currency and part paid by the Indian entity in INR. While this can optimise cash flow, it does not reduce Indian tax liability. Indian tax authorities tax the employee on total global compensation, and any under-deduction of TDS on the Indian portion can trigger penalties on the Indian entity.

Social Security (EPF) for International Workers

Transferred employees are classified as "International Workers" under the Employees' Provident Fund Act. Unless the employee's home country has a Social Security Agreement (SSA) with India, EPF contributions are mandatory at 12% each from employer and employee on full PF wages — basic pay, dearness allowance and retaining allowance — with no salary ceiling. India has SSAs with a number of countries, including Germany, France, Belgium, the Netherlands, Switzerland, Denmark, Norway, Sweden, Finland, Austria, Hungary, the Czech Republic, Luxembourg, Portugal, Canada, Australia, Japan and South Korea. Employees from SSA countries can obtain a Certificate of Coverage (CoC) from their home authority to avoid double social security contributions. There is no operative agreement with the United States, so a transferee from the US cannot obtain a CoC and contributes in both systems. Check EPFO's current list before assuming cover.

GST on Secondment Reimbursements

This is the area that catches most multinationals off guard. In May 2022 the Supreme Court decided the Northern Operating Systems case — a service tax matter under the pre-GST law — holding that on the facts before it a secondment from the overseas group company amounted to a taxable supply of manpower. The practical impact under GST:

• Where the Indian entity reimburses the overseas entity for a seconded employee's salary, the reimbursement can be treated as consideration for an import of services
• The Indian entity would then account for GST on that amount under the reverse charge mechanism, at the rate applicable to the service — and the risk does not disappear because the reimbursement is at cost with no mark-up
• But it is not automatic. Northern Operating Systems does not lay down a blanket rule that every secondment is a manpower supply; tribunals applying it have repeatedly held that the answer turns on the terms of the particular arrangement — who is the employer, who exercises control, who bears the risk. Where the Indian entity is entitled to full input tax credit on the inward supply, the charge is also frequently revenue-neutral in cash terms

The right response is to structure and document the secondment on the footing you intend and take advice on the specific contract, rather than assuming either exposure or exemption.

To mitigate this, many companies now structure the arrangement so that the Indian entity directly employs and pays the seconded employee, with no cross-border reimbursement. However, this requires the secondment agreement to clearly establish the Indian entity as the employer with full control and supervision rights.

FRRO Registration and Visa Extension for ICT Transfers

Registration Requirements

All employment visa holders staying in India for more than 180 days must register with the Foreigners Regional Registration Office (FRRO) within 14 days of arrival. For ICT transferees, the following additional documents are required on the e-FRRO portal:

• Secondment agreement or intra-company transfer letter
• Proof of relationship between the Indian and overseas entities
• Employment contract from the Indian entity
• The Indian entity's Certificate of Incorporation, MOA, and AOA

Visa Extensions for Extended Assignments

Employment visas are granted by the issuing mission for the contract period, within the maximum that mission applies, and extended in India through the e-FRRO portal — commonly up to a total of five years. Confirm the grant and extension limits for the specific nationality and role rather than assuming them. For ICT transferees, extensions require:

• Updated secondment agreement showing the extended duration
• Proof of income tax compliance (Form 130 (formerly Form 16) or ITR acknowledgement)
• Continued employment letter from the Indian entity
• An application submitted well before expiry — the FRRO publishes the lead time it expects

Processing times are published on the e-FRRO portal and vary by office and service. Where an assignment runs past the maximum period the FRRO can extend, the transferee will need a fresh visa from an Indian mission abroad — plan for that well ahead of the expiry.

Common Structuring Mistakes and How to Avoid Them

Mistake 1: Keeping the Overseas Entity as Employer

Many multinationals default to keeping the seconded employee on the overseas payroll with the Indian entity simply reimbursing the salary. This is the most expensive structuring mistake because it simultaneously creates PE risk for the overseas entity, exposes the reimbursement to GST under reverse charge, and may not satisfy Indian immigration authorities who expect the Indian entity to be the employer. The solution is to create a dual employment or co-employment arrangement where the Indian entity is the primary employer for the duration of the secondment, with a clear repatriation clause in the secondment agreement.

Mistake 2: Ignoring the 183-Day DTAA Threshold

Many companies confuse the Indian domestic tax residency threshold (182 days) with the DTAA exemption threshold (typically 183 days). Under most DTAAs, employment income may be exempt from Indian taxation if the individual is present for less than 183 days in the relevant reference period, the remuneration is paid by a non-resident employer, and the cost is not borne by a PE in India. Check which reference period the applicable treaty uses — some measure the 183 days over the fiscal year, others over any twelve-month period beginning or ending in it. If any of these conditions fails, the full salary becomes taxable in India from day one. Companies should plan transfer start dates carefully with reference to the 183-day rule and the Indian fiscal year (April-March), not the calendar year.

Mistake 3: Failing to Obtain a Certificate of Coverage

Without a Certificate of Coverage (CoC) from a Social Security Agreement country, the transferred employee faces EPF contributions at 12% employer and 12% employee on full PF wages with no ceiling. For a senior executive with PF wages of INR 50 lakh a year, that is INR 12 lakh of contributions in total — INR 6 lakh each from employer and employee. Note that the base is PF wages, not total CTC, so model it from the actual salary structure. The CoC must be obtained from the home country's social security authority before the transfer begins — obtaining it retroactively is complex and often unsuccessful.

Mistake 4: Using a Business Visa for Initial Setup

Some companies send the transferee on a business visa to "get started" while the employment visa is being processed. This is not permitted. A business visa does not authorise taking up employment in India. Attending meetings, negotiations and board meetings, and pre-sales or post-sales activity that does not amount to executing a contract, remain within its scope — but doing the job, directing Indian staff, or drawing remuneration from or through the Indian entity does not, and requires an employment visa. For a detailed comparison of what each visa permits, see our employment visa vs. business visa comparison.

Compliance Checklist for Intra-Company Transfers

Before, during, and after an intra-company transfer to India, ensure the following:

For end-to-end compliance management, consider engaging FEMA and RBI compliance services and payroll processing services to handle the ongoing obligations.

Key Takeaways

• India does not have a dedicated intra-company transfer visa — all ICT transfers require a standard employment visa with additional documentation proving the corporate relationship between the sending and receiving entities.
• The secondment agreement is the most critical document and must clearly establish the Indian entity as the employer to avoid PE risk, GST liability on reimbursements, and income tax disputes.
• Transferred employees become Indian tax residents after 182 days, taxable on global income, with EPF obligations as International Workers unless a Social Security Agreement applies.
• Salary reimbursements from the Indian entity to the overseas parent can attract GST under reverse charge in the wake of the Supreme Court's Northern Operating Systems decision — but that was a service tax case laying down no blanket rule, and the answer turns on the terms of the particular secondment.
• FRRO registration within 14 days of arrival is mandatory for stays over 180 days, and extensions are handled in India through the e-FRRO portal — commonly up to a total of five years.