Hiring of Foreign Nationals

Indian firms/companies may engage the services of foreign nationals (including non-residents of Indian natinality/origin). Applications for remittance of remuneration to foreign nationals should be made by Indian companies to authorised dealers. While allowing the remittance, authorised dealers are required to verify that:

• the total duration of engagement of foreign nationals by the applicant firm or company does not exceed twelve man-months in a calendar year.
• the amount of remittance sought for is in accordance with the terms of contract entered into by the applicant company with the foreign national
• the services of the foreign national are not covered either by any foreign collaboration agreement entered into by the Indian company or under any warranty obtained providing for deputation of the foreign nationals without any remuneration or any payment during the warrant period. If the period of engagement of a foreign national exceeds three months at a time, prior clearance is required from the Ministry of Home Affairs as well as approval from the RBI.

Centre for Monitoring Indian Economy, Bombay
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Last updated: May 1995.