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Incorporation and hiring in India


30-Jun-2026 (In Startup Law)
I need advice on running a business in India from Norway. We might hire local Indian employees. Specifically I need to know if: - We should start a subsidiary in India (incorporation of foreign-owned Indian Pvt Ltd) or use an EOR - If we need approval from RBI - If we need approval from reserve bank of India and/or FEI approval The business is in shipping and we are looking to hire Indian brokers as well as Indian surveyors for ship maintenance.
Answers (3)

Answer #1
675 votes
For long-term operations, incorporating an Indian subsidiary is preferable; EOR suits limited hiring. FEMA/FDI compliance and possible RBI approval depend on shipping activities. Tax, employment, and sector-specific maritime regulations require review before setup.
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Answer #2
945 votes
For a shipping company planning ongoing operations and recruitment in India, the preferred structure is: Incorporate a Wholly Owned Indian Private Limited Subsidiary. No prior RBI approval is generally required if the investment falls under the automatic FDI route, but post-investment reporting and regulatory compliances are mandatory. Use an EOR only if the company wishes to test the market with a small team before establishing a permanent presence.
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Answer #3
900 votes
You may hire through an EOR or incorporate an Indian subsidiary. Most sectors permit FDI under the automatic route, but FEMA/RBI and sector-specific compliance must be checked before commencing operations.
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