India-native entity Foo Falcon Tech Pvt Ltd · CIN U72900KA2022PTC163007 47 engineers paid · Apr 2026 14 US/UK companies on the entity 0 notices since founding 4 yrs on the books 5-day contractual Go-Live SLA $149/employee/month · first month free PF · ESI · S&E across all 28 states + 8 UTs Income Tax Act 2025 · Form 130 ready DPDP Act 2023 · 24-hr breach SLA

India PE risk quiz.

Six tests Indian tax authorities apply to determine whether your global company has created a Permanent Establishment in India. PE creation triggers India corporate tax on attributable profits. Versatile Employer of Record removes PE exposure structurally.

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4 yrs On the books
47 Engineers paid · Apr 2026
14 US/UK companies on the entity
0 Notices since founding
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Used by 59 companies hiring engineers, designers, and operators in India

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Permanent Establishment is the biggest unforeseen tax risk.

Permanent Establishment (PE) is a tax concept under bilateral tax treaties (India-US, India-UK) that determines when a foreign company has a sufficient operating presence in India to be taxed on India-attributable profits at India corporate tax rates (currently 22-30% on a net basis). PE can be triggered by employees who conclude contracts in India, by a fixed place of business, or by a habitual agent. Most global companies do not realise they have created PE until an Indian tax notice arrives. Versatile Employer of Record removes the most common PE trigger structurally because the India employees work for Versatile, not for your foreign entity.

Test 1: Do India hires conclude contracts?

If India-based staff have authority to bind your foreign entity in commercial contracts, this is the strongest PE trigger.

Test 2: Do India hires hold inventory?

For physical goods, India-held inventory in your name can create a fixed-place-of-business PE.

Test 3: Do you have a fixed place of business in India?

A leased office in your name, with your branding, used by India staff, is a fixed-place-of-business PE.

Test 4: Are India hires your employees directly?

Direct employment by your foreign entity (without an Indian subsidiary or EOR) is a service PE trigger after 90+ days of presence.

Test 5: Do India hires perform core revenue functions?

Sales closing, customer-facing revenue work, contract execution. these are higher-risk than back-office engineering or research work.

Test 6: Has the engagement exceeded 6 months?

Service PE risk increases sharply at 6+ months of sustained India presence.

ItemVersatile handles
0-1 tests pass PE sideLow PE risk. current structure is probably safe
2-3 tests pass PE sideModerate. review with India tax counsel
4-6 tests pass PE sideHigh. switch to Versatile EOR or Indian subsidiary
How Versatile EOR removes PE riskIndia hires are Foo Falcon employees, not your foreign entity's
Indian subsidiary alternativeRemoves EOR-side PE but creates its own corporate tax + transfer pricing surface

Permanent Establishment risk, structurally addressed.

Versatile Employer of Record: India hires are Foo Falcon employees · Foreign entity has no India PE trigger from staff

Talk to us about your India presence →

Same India operation. Different angle.

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Questions we hear most.

What is a Permanent Establishment under India tax law?
Permanent Establishment (PE) is defined in bilateral tax treaties between India and your home jurisdiction (US, UK, EU, etc.). Once PE is established, your foreign entity becomes liable for India corporate tax on profits attributable to the India operations. The rates currently range 22-30% net depending on entity structure.
Versatile EOR removes the most common PE trigger: India staff working directly for your foreign entity. With EOR, the India staff are employees of Foo Falcon Technologies Pvt Ltd (Versatile), not of your foreign entity. PE risk shifts onto Versatile, which is an Indian entity already subject to India corporate tax. Your foreign entity's PE exposure drops materially.
EOR does not protect against (a) a fixed-place-of-business PE if you lease an office in India in your foreign entity's name; (b) a dependent-agent PE if India staff conclude commercial contracts that bind your foreign entity. For these triggers, you need either an Indian subsidiary structure or careful operational controls.
Yes, for any engagement above 3-4 India hires or any engagement that touches India revenue. Versatile coordinates with three India tax counsel partners and can introduce you to the right one based on your structure.

Hire in India. Without the panic.

Tell me about your first hire. I will reply on email inside 4-6 hours, with a draft offer letter attached. Then my support team takes the depth.

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