My core aim is to hire people directly in India (Delhi) and spend a lot of time there myself (I am a British person with a British passport).
I am interested in knowing what are the best options for hiring Indians. Initially I will be looking to hire two people but also to expand the workforce in the future.
Currently I am exploring the options of registering a wholly owned company in India (It was also suggested that for harbouring tax a Mauritian holding company might also make sense). Additionally an alternative could be a long term contract where they would invoice me monthly for their work.
My concern is less about local employment laws and more about taxation laws - clearly an accountant in India would be able to advise here but any advice is appreciated.
Has anyone any experience in this area or could recommend any accountants in the UK and/or NCR / Delhi, India.
Ask them to do something that is not possible and daft, if don’t tell you that you are being daft, or they use lots of works so as not to hart your feelings, then find someone else.
Explain something to them in a way you know they cannot understand, ask them if they understand the task, if the say “yes” find someone else.
The sad fact is a lot of India people are not willing to give bad news to anyone that they consider to be there “master”, you can’t work with such people in a useful way…..
I have over 45 staff in 9 different countries. I have never had success in hiring staff in India. I think the main reason is that although there are some exceptionally talented people, it's really hard to get access to them and there are also a lot of extremely average people. Also I have found that a lot of Indian workers that I have dealt with have not given straight answers to my questions.
Also why do you want to set up a company in India? That will expose you to a lot of red tape and hassle. Much easier to just hire directly from an overseas company. This will mean you are not exposed to legal issues in India and are not exposed to the bureaucracy in India.
Instead of starting a company in India, consider hiring from any country in the world, and have everyone working from home. I have some software that can help manage this process and make sure the staff are really working the hours they say they are www.timedoctor.com. The hardest part is finding the right people. I suggest recruiting from as many places as possible, using multiple channels, for example: forums, facebook, linked in, free job boards (there are many just search for jobs India), maybe a recruitment company, outsource it to other companies that can search for you. The recruitment effort takes a lot of time to find the right person and you need to put significant attention on it.
This might be old thread but i still would like to share my experience for future readers. I am indian and have worked with several big/small US companies. I have worked at onsite locations in USA as well as from indian locations.
While outsourcing project, it is important to keep offshore team in loop for most of the discussions that happen at onsite location. At onsite one would always have much better understanding of business than anyone working with 12 hours time gap. I know many people who share very less business knowledge with their offshore colleagues and when a mistake is made they are the first one to rush to their boss to tell detailed stories.
If you want to have an effective onsite-offshore model, please make sure that you at least one coordinator who will take the responsibility to explain the business facts and take up queries. And he or she should be genuinely interested in doing so.
I have successfully worked on waterfall, agile models and all these formats may work perfectly as long as they work as one team and not onsite team and offshore team.
I agree with my friends from ukraine that there is "Yes Boss" culture in india but then who would like "No Boss" culture.
Find them on VWorker.com Give them a test project first, where you do not explain that it is a test project. This means that you can check out their work ethics etc.
Later you can hire them on a per hour basis via VWorker.com or hire them normally.
I do this all the time.
Depending on whether or not you plan to operate in another country, you may have to form a corporate entity in India to making hiring workers easier. Once you do that, you'll need to comply with local wage and employment laws, and pay local taxes. The only tricky thing is about how you enter the country, under an employment visa through the company or another route. Otherwise, if your business will not hire workers in any other countries, then you are looking at a fairly typical company setup in India.
Note: This is not legal advice nor does this give rise to any attorney-client relationship.
Purely from a legal perspective, you can hire people in India, without opening a company or incorporating it in India.
Presumably, you are hiring the people to do a job of work : therefore what would be the best way to go about it would depend on the goal.
Well I am from India (I belong to both Auditing fraternity, fellow member of one the premier auditing organisation in the world www.icai.org and a software developer) and personally feel that answers so far has not focused on the questions raised.
The question I understand relates to hiring in India. It is presumed that person raising the questions has considered all options and may be India is one of the country in his target.
Now coming back to possible answers, to form a company in India to hire a few person is definitely an overkill. You will have to follow all kind of regulations including labour law.
The best way to forward is higher hire few people directly without considering an Indian Company. Many Indian developer are available on Elance and other online outsourcing portal. In case the experience with initial hiring is good and one want to increase presence in India, a company may be formed in India.
Being both a legal professional and a software developer, I will be glad to answer any specific question on Indian Outfit.