Remote jobs from India: contract types and how to verify them
In this article (6 sections)
Related programme: the FDE for Professionals course (16 weeks (proposed)). See also open Forward Deployed Engineer jobs in India, updated daily.
A foreign company can usually engage you from India in one of three ways: as an employee of its own Indian entity, as an employee of an employer-of-record (EOR) service that employs you on the company's behalf, or as an independent contractor paid on invoices. Each gives you different rights, paperwork and tax responsibilities, so before signing, find out which one you are being offered and verify both the company and the contract.
This article explains the structures in general terms. Tax and foreign-exchange rules have details that depend on your situation; confirm them with a qualified professional and the official sources.
The three structures
| Indian entity of the company | Employer of record | Independent contractor | |
|---|---|---|---|
| Your legal employer | The company's Indian subsidiary | The EOR's Indian entity | Nobody; you are a service provider |
| Pay | Salary in rupees via payroll | Salary in rupees via payroll | Invoice, often in foreign currency |
| TDS and payslips | Deducted by employer; payslips issued | Deducted by EOR; payslips issued | Usually no Indian TDS; you pay your own tax |
| PF, leave, insurance | As per employer policy | As per EOR package | None unless you arrange them |
| Records for BGV later | Standard employment documents | Standard documents from the EOR | Contracts, invoices, bank credits |
| Ending the engagement | Notice as per appointment letter | Notice as per EOR contract | As per contract; can be short |
None is automatically better. A contractor role may pay more on paper but moves insurance, leave and tax filing onto you. An EOR role looks like normal employment in India, and your documents will name the EOR as employer.
Questions to ask the recruiter
1. Who will be my legal employer or contracting party, and in which country?
2. If employment: is it your Indian entity or an employer of record? Which one?
3. If contract: what currency, how often invoiced, and within how many days paid?
4. What equipment is provided, and who owns it?
5. What hours overlap with the team, and is there on-call?
6. How is the engagement ended, from either side?
7. Which country's law governs the contract?For forward-deployed and solutions roles, also ask whether you will travel to client sites abroad, and who arranges and pays for visas. Do not accept a contract on the assumption that travel will be sorted later.
Verify the company before signing
Remote roles attract impersonation scams: a fake "US startup" that sends an offer after one chat interview and then asks you to buy equipment from a named vendor. Check:
[ ] The role is on the company's own careers page or its official profile
[ ] The recruiter's email is on the company's domain
[ ] You had real interviews with named engineers you can find publicly
[ ] Nobody asked you to pay for equipment, training or a visa
[ ] The contract names a legal entity you can look up in its home country's
company register
[ ] For an EOR, the EOR's Indian entity is a registered company you can verifyIf anyone asks for money, stop; the reporting steps are in job scams in India.
Compare offers on the same basis
When comparing a contractor offer with a salaried one, convert both to what you keep in a year. A fictional example with hypothetical figures:
EOR employee Contractor
Annual amount on paper ₹42,00,000 USD equivalent of ₹50,00,000
Health insurance Included Buy yourself: -₹40,000
Paid leave Included Unpaid: 20 days lost ~ -₹3,85,000
Retirement contribution Employer PF Your own savings
Tax filing and advance tax Handled via TDS You compute and pay; CA fees
Currency risk None Rupee-dollar swingsThe contractor number shrinks once you account for these. Whether it still wins depends on your figures.
Keep the records you will need later
For contract work, every future background check and loan application will ask how you were paid. Keep:
- Signed contracts and every amendment
- Every invoice you raised
- Bank statements showing each foreign inward remittance, and the inward remittance documents your bank provides
- Income tax returns showing the income
- Emails from your manager describing your role, for references
For salaried EOR or entity roles, the standard folder in background verification documents to keep applies, with the employer listed as whichever entity issued your payslips.
Tax and compliance, in brief
Income earned from abroad while you are resident in India is generally taxable in India. How advance tax, GST on exported services, and foreign-exchange reporting apply depends on your status and the structure. Check the guidance on the official Income Tax Department portal, and consider paying a chartered accountant for your first year of contract income; it is cheaper than fixing a mistake later.
Remote forward-deployed roles often expect you to run client calls and deployments without a senior in the room. The FDE for Professionals programme lays out, on a proposed schedule, the delivery and production skills those roles list.
Pankit Kumar has 10 years in Data Science & AI, building and shipping production systems in regulated pharma and clinical environments. He is a freelance trainer at Boston Institute of Analytics, AnalytixLabs and Scaler, and has taught this material to thousands of working professionals.
This article is part of our FDE for Professionals programme — 16 weeks (proposed). An accelerated advanced pathway for IT professionals ready to own enterprise AI delivery.
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