How to receive remuneration for work in India for a foreign company?
I work as a Software Consultant. My colleague's friend from UK, wants me to work for an on-line IT project, in my free time. He says that he will pay me hourly for that. He told me that I cannot receive the money in my name, so wants me to register a company in India, in my wife's name and he will transfer the money to that company account. Is it legal to receive the money in that way? If not, then what is the legal way to receive the money from a foreign company, for the IT services offered.
Your query reflects that he wants to make your wife one of the directors in company. As per the Company Act 2002 , a private limited company must have a minimum of two Directors and can have a maximum of seven Directors.
It is recommended that atleast one Director be an Indian Citizen and Indian Resident, while the other Board members can be of any nationality or residency. So it might be possible that intend to make her one of the directors. Please confirm the same.
This is one of the option, however you have to bear in mind the directors have certain responsibility and liabilities incase company defaults.
The other way is that you can execute an service level agreement in your wife name and receive payment in her name
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