For Foreign Companies · Hire Contractors, Developers and Employees in India

Hiring in India: Contracts for Foreign Companies

Contractor, employment and IP assignment agreements for foreign companies that hire freelancers, developers, agencies or employees in India, including companies in the US, UK, Australia, UAE and Canada. Drafted under Indian law by Bar Council-enrolled advocates, so you own the work and the terms hold up in India. Fixed fee, handled entirely online.

Tell us who you are hiring in India. Fixed-fee quote in under 2 hours.

Share the role, whether the person is a freelancer, an agency or an employee, and whether your company has an Indian entity. An advocate from our team will recommend the right structure and reply with a fixed quote and timeline. No obligation.

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    Foreign Companies · Hiring in India
    Bar Council Advocates · Not templates
    IP in Writing · Assigned to you
    Fixed Fee · Fully online

    Foreign companies hiring in India need contracts written for India.

    Foreign companies hire developers, support staff and specialists in India every day. It is quick to start and easy to get wrong. A template from your home country, whether you are in the US, UK, Australia, UAE or Canada, can look complete and still fail in India, because Indian law decides who owns the work, what notice an employee is owed, and which restrictions a court will enforce. My Legal Pal drafts the contractor, employment and IP agreements for hiring in India under Indian law.

    This page is for foreign companies that hire contractors, developers, agencies or employees in India. If your team sits in another country, see our employment contract drafting service, which covers employers hiring in other countries. If you are an Indian employer, our guide to employment agreements in India is the better place to start.

    Three ways to hire in India, and the contract each one needs.

    Which route is right depends on the role, how long, and how many people. We tell you in our first reply.

    A freelancer or contractor

    You pay for the work, not for the person’s time. You need a contractor agreement with a written IP assignment, a clear scope and payment terms. The main risk is a contractor who works like an employee and is treated as one. See employee or contractor in India.

    A development agency or vendor

    You contract with a company, not a person. You need a services or software development agreement that covers IP, security, subcontracting and what happens at exit. See the software development agreement guide.

    An employee

    An employee needs an Indian employment agreement and an Indian employer. A foreign company with no Indian entity usually hires through its own Indian subsidiary or an employer of record. We draft the employment documents for either route.

    What we draft for companies hiring in India.

    Every document is written under Indian law and fitted to your hire.

    Contractor and freelancer agreements

    Scope, milestones, payment, confidentiality and a written IP assignment, with a clear line between a contractor and an employee.

    Indian employment agreements and offer letters

    Appointment terms, salary structure, notice, leave and confidentiality that fit Indian law. Read what goes into one in our guide to employment contracts in India.

    IP assignment

    A signed assignment that names the work, the rights, the duration and the territory, so code and designs belong to your company. See the IP assignment guide.

    Confidentiality and NDAs

    Confidentiality terms for staff, contractors and agencies. For a stand-alone agreement, see NDA drafting.

    Agency and vendor agreements

    Services agreements and master agreements with Indian development agencies, including subcontracting, security and exit terms. See master service agreements.

    Restrictive covenants that hold up

    In-employment exclusivity, notice periods and non-solicitation drafted for what Indian courts will enforce.

    Data processing terms

    If your Indian team handles personal data, we add the data terms to match. See data processing agreement drafting.

    Equity for Indian staff

    Stock option and bonus terms for Indian employees and contractors. Start with our ESOP guide.

    Where home-country templates break in India.

    The six points that most often change a contract when the person works in India.

    Who owns the work

    In India, a contractor who writes code or creates a design owns it until they sign an assignment. US “work made for hire” wording does not do that job. The Copyright Act, 1957 requires an assignment to be in writing and to state the rights, the duration and the territory. If the duration is missing, it is taken as five years. If the territory is missing, it is taken as India only. For employees, the employer usually owns work made in the course of the job, and we still add a written assignment.

    Non-compete clauses

    A restriction on working for a competitor after employment ends is generally void in India under Section 27 of the Indian Contract Act. During employment it is valid. So we protect you with confidentiality, IP assignment, notice periods and carefully drafted non-solicitation instead. See non-compete rules by country.

    At-will termination

    A US-style at-will clause does not remove an Indian employee’s rights. Notice, pay in lieu and the Labour Codes shape how employment can end, and state shop and establishment laws still matter. We write notice and termination terms that match Indian law.

    Employee or contractor

    India decides this by how the work is actually done, mainly who controls it, not by the label in the contract. A contractor with set hours and daily direction may be treated as an employee, with provident fund, gratuity and other costs. We structure the engagement and the contract to match the reality.

    Stamp duty

    Many agreements must be stamped under the stamp law of the relevant state, and an unstamped document may not be accepted as evidence until duty and a penalty are paid. We tell you which documents need stamping and where. See whether a contract is valid without stamp paper.

    Governing law and disputes

    Contractor and agency agreements can often use a foreign governing law, but you still have to enforce against someone in India. Arbitration with a clear seat is usually more practical than a foreign court judgment. For an employee working in India, Indian law applies whatever the contract says. See arbitration versus litigation in cross-border contracts.

    Common situations we draft for.

    The hires we are asked about most.

    Hiring a remote developer in India

    Sign a contractor or employment agreement before work starts, with a written IP assignment, confidentiality terms and clear access rules for your code and systems.

    Paying an independent contractor in India

    The contract fixes the currency, the invoice process, who bears bank charges and taxes, and what happens on late payment. Tax treatment is a question for your tax adviser, and we flag what they need to check.

    Setting up an offshore development team

    For a team of several people, we compare a development agency, a group of contractors and your own Indian entity, then draft the agreements that fit.

    Hiring an employee through an employer of record

    If someone else employs the person on your behalf, you still need a services agreement with that provider and IP and confidentiality terms with the individual. We draft both.

    Engaging an Indian agency or vendor

    A master services agreement and statements of work that cover scope, IP, security, subcontracting and exit. See master service agreements.

    Moving a contractor onto payroll

    When a contractor becomes a full-time employee, the contract changes, and so do notice, benefits and IP terms. We draft the transition so the old and new terms do not conflict.

    What changes for foreign companies, by country.

    The same Indian hire raises different problems depending on your home-country template.

    United States

    US contracts lean on at-will employment, “work made for hire” and, in many states, non-competes. None of the three works for staff or contractors in India, so we replace them with Indian-law equivalents. For contracts governed by US law, see contract lawyers in the USA.

    United Kingdom

    Post-termination restraints in UK contracts are generally void in India, and IR35 is a UK tax rule with no effect there. Indian notice terms and the control test for classification apply instead. For contracts governed by English law, see contract lawyers in London.

    Australia

    Australian awards and Fair Work rules do not govern people working in India, but Indian law does. Australian IP and confidentiality wording usually has to be rewritten to meet Indian assignment rules. See our legal services in Australia.

    UAE

    A reasonable post-employment restriction can be valid in the UAE, but it is generally void in India. A UAE company hiring in India needs protection built from confidentiality, IP and notice terms. See contract lawyers in Dubai.

    Canada

    Canadian provincial employment rules do not apply to people working in India, and neither does Ontario’s non-compete ban. Indian law decides what is enforceable. See contract lawyers in Canada.

    Other countries

    The same Indian-law points apply to companies in Singapore, the EU and elsewhere. Tell us where you are and what you need, and we will fit the contract to Indian law and flag what your own counsel should check.

    How hiring in India works with us.

    Four steps, all online, with a fixed fee.

    1. Tell us about the hire

    The role, how many people, how long, and whether your company has an Indian entity. A short form or a WhatsApp message is enough.

    2. We recommend the structure

    Contractor, agency, employee through your entity, or employer of record. You get a clear recommendation and a fixed quote within 2 hours.

    3. We draft under Indian law

    An advocate drafts the agreements, with a plain-language note on the points that matter, including stamping and signing.

    4. Review and sign

    You get revisions until the contract fits the deal. Most single agreements are ready in 2 to 4 days.

    What we do, and what we leave to others.

    We draft and advise on the contracts and the Indian-law points around them. We do not run payroll, act as an employer of record, file tax returns or advise on immigration. Tax and permanent-establishment questions belong with your tax adviser, and we flag the points they need to look at. We are Indian advocates and advise on Indian law, so we work alongside your own counsel for your home-country law. If you need an Indian-law view for your lawyers, we also provide a legal opinion on Indian law.

    For ongoing hiring, a legal retainer in India keeps the same team on call.

    Know more about how a foreign company can file for trademark in India

    Guides for companies hiring in India.

    Read the detail behind each point on this page.

    The legal checklist, in any country.

    How India decides, and what it costs to get wrong.

    Why paying for work does not mean owning it.

    What governs an Indian employment contract today.

    Your options after the work is done.

    Key clauses and IP ownership rules.

    Frequently asked questions about hiring in India

    Can a foreign company hire in India without an Indian entity?
    For contractors and agencies, yes. You contract with them directly. For employees, Indian payroll, provident fund and tax registrations need an Indian employer, so you would use your own Indian subsidiary or an employer of record. We draft the employment documents for either route. Tax and permanent-establishment questions are for your tax adviser.
    Who owns the code an Indian freelancer writes for me?
    The freelancer owns it until they sign a written assignment. The assignment must name the work, the rights, the duration and the territory. Without those details, Indian law fills the gaps in ways that rarely suit a foreign company. See the IP assignment guide.
    Can I use my existing contract template to hire in India?
    Often not on its own. Clauses on IP, non-competes, termination and governing law usually need to change. We review your template and tell you what to change, or draft a new Indian-law version.
    Is a non-compete enforceable in India?
    A non-compete that applies after employment ends is generally void under Section 27 of the Indian Contract Act. Restrictions during employment are valid. We protect you with confidentiality, IP assignment and notice terms instead.
    How do I hire a developer in India legally?
    Decide whether the person is a freelancer, part of an agency, or an employee. Then sign the matching contract before work starts, with a written IP assignment, confidentiality terms and payment terms, and make sure the label matches how the person actually works. We recommend the structure and draft the contract.
    How do I pay an independent contractor in India?
    You pay under the contract, usually against invoices in an agreed currency. The contract should set the currency, the invoice process, who bears bank charges and taxes, and what happens on late payment. How the payment is taxed is a question for your tax adviser.
    Can I treat my developer in India as a contractor?
    Only if the relationship really is one. India looks at control, not the label. A person who works set hours under your direction may be treated as an employee. See contractor or employee in India.
    Which law should govern the contract?
    For contractors and agencies, a foreign governing law is often possible, but enforcing it against someone in India can be slow. Arbitration with a clear seat is usually more practical. For employees working in India, Indian law applies whatever the contract says.
    Do the agreements need stamp duty?
    Many do. Stamp duty depends on the state and the type of document, and an unstamped document may not be admitted as evidence until duty and a penalty are paid. We tell you what applies to your documents.
    Do you handle payroll, employer of record services or immigration?
    No. We draft and advise on the contracts and the Indian-law points around them. Payroll, employer of record services, tax filings and immigration are handled by other providers, and we can work with the ones you use.
    Do you advise on the law of my own country?
    We are Indian advocates and advise on Indian law. We work alongside your home-country counsel. For contracts governed by US or English law, see our pages for contract lawyers in the USA and contract lawyers in London.
    How long does it take, and what does it cost?
    You get a fixed fee within 2 hours of sending the details, with no hourly billing. Most single agreements are ready in 2 to 4 days. A full set for a new team takes a little longer, and we confirm the timeline in the quote
    Prakhar Rai

    Prakhar Rai | Advocate and Founder

    Written and reviewed by an advocate.

    This page is written and reviewed by Prakhar Rai, an advocate enrolled with the Bar Council of India and the founder of My Legal Pal. He is an alumnus of the National Law School of India University (NLSIU), Bangalore, with a Master of Business Laws. His practice covers commercial and employment contracts for startups, technology companies and SMEs, including contracts between foreign companies and their teams in India. This page covers Indian law only. It is general information, not legal advice for your situation, and it is not tax advice.

    Reviewed for legal accuracy by Prakhar Rai, Advocate (Bar Council of India). Last updated: October 2026.

    Hiring in India? Get the contract right first.

    Contractor, employment and IP assignment agreements under Indian law. Bar Council-enrolled advocates, fixed fee, fully online.

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