How Foreign Company Directors Can Work in India: Legal Visa Options Explained (2026 Guide)

Your go-to legal guide for understanding Business Visa, Employment Visa, and stay compliance for foreign directors and KMPs of Indian subsidiaries.

Introduction

As global companies expand into India, one of the most practical legal questions they face is: “Can our foreign directors actually work from India?” Under Indian law, directors of foreign-owned subsidiaries often need to be physically present to manage operations, open bank accounts, or attend board meetings. However, the right visa category — whether Business Visa or Employment Visa — depends on their role, remuneration, and stay duration. Misclassification can lead to immigration non-compliance or penalties under the Foreigners Act, 1946 and MHA guidelines. This guide breaks down the legal pathways for foreign nationals serving as directors or key personnel in Indian companies.

What visa options are available for foreign company directors in India?

Foreign company directors can work in India under either a Business Visa (for non-remunerated board roles or visits) or an Employment Visa (for full-time, paid positions). The correct visa depends on whether the director receives a salary from the Indian company and the nature of their duties.

1. Business Visa — for Non-Executive and Visiting Directors

A Business Visa is the most common route for foreign nationals who are non-resident directors, investors, or representatives attending meetings, negotiations, or board sessions in India.

Key features:

• Granted to foreign nationals to explore business opportunities, attend board meetings, or oversee investments.
• Usually valid for up to five years with multiple entries.
• Each stay cannot exceed 180 days unless registered with FRRO (Foreigners Regional Registration Office).
• Not permitted to receive a salary or engage in day-to-day management.

Example:
A Singapore-based investor director visiting India for quarterly board meetings or to review operations would require a Business Visa, not Employment Visa, as long as they’re not drawing remuneration from the Indian company.

2. Employment Visa — for Executive Directors and KMPs

An Employment Visa (E-Visa) applies when a foreign director or key managerial personnel (KMP) is employed in India and receives remuneration. This visa allows full-time work and residence.

Eligibility conditions (as per MHA guidelines):

• The person must be highly skilled or qualified.
• The salary threshold (excluding board directors on non-remunerated roles) must generally exceed USD 25,000 per annum.
• Employment must be with a legally registered Indian entity.
• Visa duration typically up to 2–5 years, extendable.
• FRRO registration within 14 days of arrival is mandatory if stay exceeds 180 days.

Example:
If a US citizen is appointed as Managing Director or CFO of an Indian subsidiary with a monthly salary, they must apply for an Employment Visa.

How does the visa type affect director appointment and compliance under Indian law?

Visa type directly impacts how a foreign director can be appointed under the Companies Act, 2013 and how they must comply with FEMA, FRRO, and tax regulations. Employment Visa holders can be full-time executive directors; Business Visa holders cannot be resident employees.

Practical Legal Implications:

1. Appointment as Director:
   • Foreign nationals can be appointed as directors under Section 149(3) of the Companies Act, 2013.
   • At least one director must be an Indian resident (182 days in India in the preceding financial year).
2. Remuneration and Tax:
   • Business Visa holders cannot draw salaries from the Indian entity.
   • Employment Visa holders drawing remuneration must comply with TDS, PAN registration, and FEMA salary remittance norms.
3. FEMA & RBI Compliance:
   • Remuneration payments to foreign directors must comply with Schedule III of FEMA (Remittance of Assets) Regulations.
   • Shareholding and FDI inflows must be reported through Form FC-GPR and Form FC-TRS under FEMA 20(R).
4. FRRO & Residency Compliance:
   • Any foreign national staying beyond 180 days must register with FRRO.
   • Periodic renewals and reporting are mandatory for Employment Visa holders.

Can a foreign director switch from Business Visa to Employment Visa?

Yes, but only by applying afresh through the Indian mission abroad — Business Visas cannot be converted into Employment Visas within India. The applicant must submit a new Employment Visa request with supporting appointment documents and salary proof.

Conversion Rules (2026 Update):

• Visa conversion within India is not permitted except under special government approval.
• The director must exit India and apply through the Indian Embassy or Consulate in their home country.
• Supporting documents include:
  • Appointment letter and employment contract.
  • Board resolution approving appointment.
  • Proof of salary meeting MHA’s threshold.
  • Company registration certificate and tax details.

Compliance Checklist for Foreign Directors and KMPs

1. Before entering India:
   • Choose correct visa type (Business or Employment).
   • Ensure documentation aligns with role and remuneration.
2. After appointment:
   • File DIR-12 within 30 days with MCA.
   • Obtain DIN and Digital Signature Certificate (DSC).
   • Register with FRRO if applicable.
3. During stay:
   • Maintain valid visa and FRRO records.
   • Comply with FEMA and Income Tax Act reporting.
   • Ensure resident director requirement remains fulfilled.

For more detailed compliance guidance, see related articles on Documents Required to Register a Foreign Owned Company in India and Setting Up a US-Owned Subsidiary in India: Legal Steps Explained.

Why does correct visa classification matter for foreign directors?

Using the wrong visa type — for example, drawing salary on a Business Visa — can lead to visa cancellation, blacklisting, or penalties under Indian immigration law. Correct classification ensures legal stay, tax compliance, and corporate governance credibility.

Legal Risks of Misuse:

• Visa violation: Working on a Business Visa without authorization can attract penalties or deportation.
• Tax complications: Incorrect visa leads to unclear tax residency status.
• Regulatory scrutiny: MCA and RBI increasingly track compliance for foreign-owned entities.

Practical Tip:

Always align the director’s visa type with their board role and remuneration structure before filing DIR-12. A clean immigration record builds credibility during audits, funding rounds, and RBI reviews.

FAQs

1. Can a foreign director on a Business Visa sign company documents?
Yes, they can sign resolutions or attend board meetings but cannot execute day-to-day operational or managerial acts.

2. What if a foreign director becomes a resident under Indian tax law?
If stay exceeds 182 days in a financial year, they may be considered a resident for tax purposes even if holding a foreign passport — requiring income reporting under Indian tax law.

3. Is FRRO registration needed for short business visits?
No, FRRO registration is only required if stay exceeds 180 days continuously.

4. Can spouses of Employment Visa holders work in India?
Yes, dependents can apply for an Entry (X) Visa, but they must obtain their own Employment Visa to work legally.

Practical Takeaway

For foreign-owned subsidiaries, the legal right of directors and key personnel to work in India hinges on visa accuracy and compliance discipline. A Business Visa suffices for board participation, but full-time leadership requires an Employment Visa. Structuring these correctly at the incorporation stage ensures long-term compliance under Companies Act, FEMA, and immigration laws.

About the Author
Prashant Kumar is a Company Secretary, Published Author, and Partner at Pratham Legal, a full-service Indian law firm advising on corporate, regulatory, and transactional matters. He specialises in corporate governance, legal compliance, and brand protection, helping businesses build credible and sustainable legal foundations. He can be reached for discussions on brand strategy, compliance, and governance excellence via LinkedIn.