- Overview: India
- Global HR Compliance
- Global PEO and payroll
- Visa, work permit & immigration support
- Expand without a company set up
- Contractor vs. employee: which is better?
Global PEO and Payroll in India
Getting your business up-and-running in India can be challenging, especially if you do not speak the native language. Establishing your own business entity in India is an option to be considered as you expand abroad. But before you invest valuable resources in setting up business in India, you should be fully aware of the risks involved.
Acumen’s Global PEO and Payroll solution was designed especially for companies like yours, to smooth the way for quick, easy and risk-free business operations in India, without having to establish a legal business entity.
Acumen International – Your Professional Employer Organization in India
Navigating the Indian legal system and adhering to regulations governing employment and taxation can be challenging for businesses, especially if you are not a native Indian speaker. Partnering with Acumen International as a global Professional Employer organization (PEO) provides you with the local knowledge and support you need to conduct business in India without concern for legal and compliance risks.
Whether you represent international client companies or you are taking your own business operations abroad, Acumen International’s Global PEO and payroll service allows you to hire and payroll local and expat employees in India. With Acumen in your corner, you can quickly and easily onboard and compensate your employees without risk of legal repercussions.
International Global Payroll and Taxation in India
Employment related taxes
New personal tax regime (NPTR). Effective 1 April 2020, an optional NPTR, devoid of any deductions or exemptions, has been introduced with lower tax rates spread across six income levels.
Tax resident employees. Taxation of individuals in India is primarily based on their residential status in the relevant tax year.
Payroll Cycle in India
Every person employed in any railway, factory or industrial or other establishment in which up to 1,000 persons are employed, shall be paid before the expiration of the seventh day.
Every person employed in any other railway, factory or industrial or other establishment shall be paid before the expiration of the tenth day after the last day of the wage period in respect of which the wages are payable.
Non-payroll taxes in India
Goods and services tax (GST). GST is an indirect tax, which is a transaction-based taxation regime.
For smooth GST implementation, the government has formed a GST Council. The Council consists of the State Finance Ministers representing their states. The GST Council provides recommendations to the government on various aspects of GST law, such as rate revisions and amendments in GST rules, etc.
Prior to GST, there were multiple indirect taxes leviable on various transactions at each stage separately by the Union Government and the states at varying rates. Such taxes included excise duty, service tax, value added tax (VAT)/central sales tax (CST), entertainment tax, luxury tax, lottery taxes, state cesses and surcharges, etc. All such taxes (except customs duty) have been subsumed under GST, and there is one single tax applicable on supply of goods and services. However, there are a few products that continue to be outside the ambit of GST, like petrol, diesel, aviation turbine fuel (ATF), natural gas, and crude oil.
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How Acumen’s International PEO and Payroll Service can Benefit Your Business in India
Compensating your local and expat workforce in India and closely adhering to Indian taxation requirements can divert your attention and resources from activities that help your business grow. A reliable global employment solution like Acumen’s Global PEO and Payroll service can take a substantial burden off your shoulders so you can focus on running your company.
Outsourcing the administrative and compliance tasks involved in employee payroll is one approach, but we have a better solution. Acumen International offers a global PEO and payroll solution that goes beyond outsourcing. We hire and compensate your global workforce on your behalf, and take care of all the details of payroll while ensuring full compliance with Indian labor and taxation laws.
It is important to note that Acumen does not provide international global payroll services as a standalone solution, but only as a part of our global PEO and Payroll solution.
Our comprehensive global PEO and payroll services are just some of the benefits of partnering with Acumen International. We make it easy for you to achieve your business goals in India by officially employing and compensating your best selected global talent – both locals and expats – without concerns for legal and compliance risks faced by global employers.
Disclaimer: Any of the above information is subject to changes imposed by Indian laws. To get the latest updates on taxation in India and in 190 countries worldwide, contact Acumen’s team of global employment experts.