How to become self-employed in India | NRIs and Foreigners

India welcomes expats to both live and work in its bustling economy. However, it is still difficult for foreigners to go to India and begin life as a freelancer or self-employed worker.

In this article, we’ll go over why it is difficult, and we’ll also talk about how Wise Business may be a good solution for individuals conducting international business in India.

If I’m not a citizen, can I legally freelance in India?

Some countries provide the opportunity to get a freelancing visa to work and live in other countries. However, at this point, India is not a member of this list.

So, what does this mean for freelancing in India? The Indian government offers visas in numerous categories.² But, if you want to do anything that resembles work in India (and you’re not a dual citizen of India and the United States), then you are eligible for an employment visa or a business visa.

Visa¹	Description/Duration
Employment Visa	Highly skilled Individuals intending to take up employment can get a renewable, multi-entry visa extending up to 5 years.
Business Visa	Visiting India for a business purpose with a renewable, multi-entry visa extending up to 5 years

Important Information for Overseas Indians (OCI)

If you’re a foreign national with the ability to become an Indian citizen (meaning that your family has a historical link to India after 1947), then becoming an Overseas Citizen of India (OCI) might be a good possibility for you.

To take full advantage of the OCI card, then you’ll most likely want to actually reside in India. Most OCIs, for example, use the OCI card as a way to maintain dual citizenship.

Steps to getting the OCI card: ³

1. Show proof of citizenship

2. Provide evidence related to your family’s citizenship in India. Eligibility for this typically comes from India at the start of the Constitution, belonging to a territory that became a part of India after August 15th, 1947, being a citizen after January 26th, 1950. This can relate to your personal citizenship, parents, or grandparents. You can provide this evidence in the form of a passport, domicile certificate, or other proof that satisfies this request. OCI card applicants often submit a certificate of residence or place of birth for themselves, their parents, or grandparents.

3. Give evidence of relationship as parent or grandparent, if their Indian origin, is the basis for receiving the OCI. This document would include a birth certificate or educational certificate.

4. Pay the application fee by way of Demand Draft (Method used by a bank to conduct a money transfer)

Steps/Different Fees
General Cost: $275 or equivalent in local currency if the application is filled out in India
PIO (Person of Indian Origin) Cost: $25 or equivalent in local currency if the application is filled out in India
General Category Fee: Rs. 15,000 for general category, for PIO(Person of Indian Origin) Rs. 1400, and for a minor PIO cardholder Rs. 8,000

Additional Note: PIO cardholders will need to send a copy of their PIO card

Make international payments
with Wise Business >>

Does this mean I can be self-employed in India?

Specifically, high skilled, self-employed individuals are able to come to India on an employment visa. These individuals should have backgrounds in areas, such as engineering, medicine, accounting, law, etc.

You can obtain an employment visa without being a proper employee of a company if you’re doing ongoing consulting or contract work for them at a fixed rate.

A great way to become self-employed or to freelance in India is establishing your own business entity. This includes a few options, with which you can establish while living in India on an employment visa or business visa. However, upon establishing your business in India, you will be required to leave the country and return.

It’s important to note that there are multiple business types and each one has its own rules and regulations. Looks take a look at them below:

Foreign Nationals, Foreigners, and Non-Resident Indians (NRI)

1. Limited Liability Partnership (LLP) ⁴

A limited liability partnership (LLP) is available for NRIs and foreign nationals. The individuals starting the company can do so with 100% foreign direct investment. This type of business structure cannot have shareholders but partners.

Steps to Register: Limited Liability Partnership (LLP) ⁴

• Digital Signature Certificate
• Designated Partner Identification Number
• Name Approval for the LLP
• Incorporation Application
• LLP Agreement

This process takes between 7 and 40 working days.

1. Private Limited Company or Limited Company ⁵

A Private Limited Company allows for 100% direct investment from foreign nationals and foreign companies. It is claimed to be one of the cheapest and fastest ways to enter into the Indian market.

Under this business type, shareholder and directors agreements can be made in three separate ways. One of the most important things to note is that it often splits directors among foreign citizens and those that are Indian nationals, as is stipulated by the Indian government. However, the division of shareholders can be split among foreign citizens.

100% Foreign Shareholding ⁵

The company can have two foreign shareholders, along with one or more foreign directors and one or more directors that are foreign nationals.

Foreign Subsidiary ⁵

The company holds 51% or more shares of the Indian company under a foreign subsidiary, along with one or more foreign directors and one or more directors that are foreign nationals.

Joint Venture ⁵

This type of structure has one or no foreign director or 1 or more Indian directors. The shares in the company are split among an Indian citizen and Foreign National or a company.

Documents to Register: Private Limited Company or Limited Company ⁶

1. Digital Signature Certificate
2. Director Identification Number
3. Name Approval for the Company
4. Company Details Submission
5. Incorporation Application
6. One-person Company (OPC) ⁷

Since 2013, the Indian Companies Act has given the opportunity to Indian citizens and foreign nationals to establish a one-person company (OPC).

In a one-person company, the employee and director are embodied in a single individual. This business type offers foreign nationals the chance to operate a business in India with a corporate structure similar to that of a sole proprietorship or a limited company.

While foreigners are prohibited from immediately starting and running an OPC, it is important to note that residents in India for a period of 182 days or more in the previous year can take on this opportunity.

Documents to Register One-person Company (OPC) ⁸

1. Digital Signature Certificate
2. Director Identification Number
3. Name Approval for the Company
4. Preparation of MOA and AOA
5. File the forms

Taxes for Self-employed in India

Both OPCs and Private Limited Companies receive the same tax rate according to the income tax act.⁹ This tax rate is 25% and will go up if the company has a turnover greater than 400 crores annually.

LLPs are taxed at 30% for an income of up to 1 crores and receive an additional 12% surcharge if their incomes exceed 1 crores.¹⁰

If taxes and accounting aren’t your forte, then you can always access a chartered accountant to handle some of the tough parts of operating your business in India.

Wise Business - an easy, low-cost international business account

Wise Business supports transfers to 40+ currencies including Indian Rupees. You can take advantage of fast transfers with the mid-market exchange rate and low transfer cost.

Fees	Conversion fee from 0.42%
Speed	0 - 2 working days
Convenience	If you’re paying multiple contractors, you can use Wise Batch Payments. Instead of making several payments separately, you can send multiple payments in one go. You can make business payments via the app. Wise Business can be integrated to QuickBooks accounting software to help ease reconciliation.

How much could Wise help you save?

Make international payments
with Wise Business >>

Examples of Self-employed Jobs in India:

These examples are of self-employed and freelance jobs are more associated with working online, as international freelancers can find ample opportunities both in India and abroad. Here is a list:

1. Data entry clerk
2. Health coach
3. General coach
4. Brand ambassador
5. Social media manager
6. Market researcher
7. Content writer
8. Graphic designer
9. Recruiting coordinator
10. Human resources coordinator
11. Virtual assistant
12. Freelance writer
13. Medical coding specialist
14. English as a second language (ESL) teacher
15. Tutor
16. Computer programmer
17. Affiliate marketer
18. Fitness instructor
19. Event planner
20. Website tester
21. Audiobook reviewer
22. Online sales specialist
23. Ghostwriter
24. Vacation planner
25. Helpdesk analyst
26. Photo editor
27. Survey taker
28. Bookkeeper
29. Proofreader/Editor
30. Sleep consultant
31. Ecommerce store owner
32. Food delivery rider
33. Selling printables
34. Blogger
35. Rent out your car
36. Use your backyard
37. Chat agent
38. SEO consultant
39. Mystery shopper
40. Customer service

Conclusion

There are a few options that you can take as a foreigner in India to start working as a freelancer or self-employed person. However, it will take certain measures to get started including, a visa and the forming of an entity. Both living in and operating a business in India will depend not only on your personal background (Foreigner, Foreign National, NRI, OCI). Please consider your status upon planning to engage in business in India, as it the situation varies greatly between these groups to work as a freelancer or self-employed person in India.

Learn More:

Working From India on US Payroll (Employers + Employees)

---

Sources:

1. https://www.mha.gov.in/sites/default/files/2022-08/work_visa_faq%5B1%5D.pdf

2. https://www.startupindia.gov.in/content/sih/en/international/go-to-market-guide/indian-visa.html

3. https://www.mea.gov.in/images/pdf/oci-faq.pdf

4. https://www.indiafilings.com/learn/llp-registration-for-nris-and-foreign-nationals/

5. https://www.indiafilings.com/learn/guide-to-indian-private-limited-company-for-foreigners

6. https://www.indiafilings.com/company-registration

7. https://www.globaljurix.com/faq/opc-registration-one-person-company.php

8. https://www.indiafilings.com/learn/how-to-register-one-person-company/

9. https://tax2win.in/guide/llp-vs-company-know-the-difference

10. https://cleartax.in/s/one-person-company-registration-procedure-india