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01 · Sector desk
From subsidiary formation and ESOP structuring to software-export GST and transfer pricing, we handle India's regulatory landscape so your engineers can focus on shipping product.
Sector docket
01 · Context
India is the world's largest engineering talent market, with a fast-growing SaaS ecosystem. For US and UK technology companies, hiring, paying and structuring operations in India is complex, and the cost of getting it wrong (FEMA violations, GST misclassification, transfer pricing penalties) far exceeds the cost of getting it right from day one.
Our technology practice works with SaaS companies, AI startups, IoT hardware firms and enterprise software vendors on the issues specific to them: software-export treatment under GST, ESOP taxation for Indian employees, IP ownership structures under FEMA, and ODI compliance for Indian founders investing overseas.
02 · Obligations
Most technology companies set up a private limited company as an engineering centre or captive unit. This involves MCA registration, DIN and DSC for directors, bank account opening and the initial FEMA filings, typically in 10–15 business days. We also advise on US-flip structures for Indian founders raising US venture capital, and on branch versus subsidiary for software-services entities.
Handled by Subsidiary Formation
Indian employees can receive stock options from a foreign parent, but exercise and repatriation involve FEMA reporting, Form FC-TRS in some cases, and perquisite tax under Indian income-tax law. We structure plans that work under both Indian and home-country rules.
Handled by FEMA & RBI Compliance
Genuine software exports invoiced in foreign currency are zero-rated, but only if the place-of-supply conditions under the IGST Act are met precisely. We handle registration, GSTR-1 and GSTR-3B, annual returns, LUT for exports and refund claims.
Handled by GST & Indirect Tax
A captive centre serving a US or UK parent is a related-party arrangement. The arm's length price for development, testing, R&D and support must be documented every year. We prepare the Master File and Local File, run benchmarking studies and represent you in TP assessments.
Handled by Transfer Pricing
Monthly TDS, PF and ESI, Professional Tax, the annual salary certificate (Form 130, formerly Form 16) and returns, across every state where your engineers work. We also help design CTC structures with tax-efficient components such as HRA and LTA.
Handled by Global Payroll
Monthly MIS (P&L, balance sheet, cash flow), board packs, ARR/MRR tracking, burn analysis and investor-grade compliance, working with your US or UK CFO as an extension of the global finance function.
Handled by Virtual CFO
03 · Services
04 · Questions
Many companies start that way, but contractors who work exclusively for one foreign company with fixed hours and company equipment risk being treated as employees, triggering PF, ESI and TDS obligations retroactively. We advise on the contractor-versus-employee line and structure compliant arrangements before they become a liability.
By default, the Indian entity that employs the developers. For the foreign parent to own it, use an inter-company IP assignment or a cost-plus development arrangement. Both have FEMA and transfer pricing implications that must be managed.
05 · Enquire
Tell us about your plans for India. We reply with a scope and fee proposal under a formal engagement letter.
Frameworks and portals we work with. Names are used descriptively; no endorsement implied.