For years, the H-1B visa was the default route for U.S. companies to access top Indian talent. It allowed American firms to bring skilled professionals into the United States and fill critical gaps in engineering, software, and product development.
But that model is breaking down — fast.
Between the steep $100,000 annual visa fee recently announced, unpredictable lotteries, and growing political scrutiny, the H-1B route is no longer a sustainable hiring pipeline. What used to be a competitive advantage for U.S. tech companies has turned into a regulatory bottleneck and a financial burden.
So where does that leave companies that still need access to India’s world-class talent pool? The answer is simple: stop moving people — move the work. And the most strategic way to do that is through entity setup in India.
Let’s be honest: the H-1B system was never simple, but it was predictable. U.S. employers could plan around the lottery window, budget for sponsorship costs, and bring the best engineers or analysts to headquarters. Now, those assumptions are obsolete. The newly proposed $100,000 fee per visa, coupled with tougher enforcement under initiatives like Project Firewall, has changed the cost-benefit equation entirely. That price tag doesn’t even include legal fees, relocation costs, or the risk of rejection. The total expense for hiring one foreign worker can now exceed $150,000 in the first year alone.
For startups, that’s a non-starter. For large enterprises, it’s an unnecessary headache. What’s worse, the visa process doesn’t scale. You can’t quickly onboard ten new engineers or customer support specialists if each one depends on an immigration quota and a multi-month approval process. In short: relying on U.S. visas to access Indian talent has become a business risk.
India isn’t just a source of H-1B candidates anymore — it’s a mature global talent ecosystem in its own right. The country now produces 1.5 million engineers annually, with deep specializations in software development, AI, data analytics, and product design. Its professionals are fluent in English, operate in familiar time zones for U.S. collaboration, and have experience working in international teams.
Major U.S. companies already know this. Google, Microsoft, and Amazon all operate massive engineering and R&D centers in India — not because of cost alone, but because of scalability, innovation, and speed to market. The question for small and mid-sized U.S. companies is: how can we do the same, quickly and compliantly, without spending a fortune?
An entity setup is simply the process of creating a registered company in India — typically a Private Limited Company or Limited Liability Partnership (LLP) — under Indian law.
Once your entity is established, you can:
In other words, it gives you complete control over your operations in India, without relying on visas or third-party bodies for every hire.
If you want to explore this route, here’s how: Registering a Company in India.
1. Massive Cost Savings
Hiring an engineer in the U.S. via H-1B can cost upwards of $200,000 when you include fees, relocation, and salary.
The same caliber of professional in India costs a fraction of that — often 70–80% lower total cost of employment — with no visa fees or immigration lawyers required.
That means you can scale faster and reinvest your savings into R&D, product growth, or U.S. market expansion.
2. Direct Access to the Indian Talent Market
With your own entity, you’re not outsourcing; you’re building a legitimate, in-house global team.
You control who you hire, how they work, and what your culture looks like.
Instead of relying on third-party contractors or opaque offshore vendors, you build your own brand presence in India — which also helps attract better candidates.
3. Operational and Legal Independence
An Indian entity can sign contracts, receive payments, and make business decisions independently of the U.S. parent company.
You’re not dependent on H-1B approval cycles, government quotas, or political winds.
And because India has strong bilateral business treaties with the U.S., your entity can easily repatriate profits, handle intercompany billing, and maintain transparent tax reporting.
4. Time Zone Advantage and Round-the-Clock Operations
India’s time zone (GMT+5:30) makes it perfect for 24/7 operations when paired with U.S. teams.
You can run “follow-the-sun” product development, customer support, or DevOps cycles — increasing responsiveness and reducing downtime.
5. Ease of Scaling
Once your entity is live, adding new hires takes days, not months.
You can onboard multiple employees without worrying about immigration paperwork, visa caps, or transfer approvals.
Here’s the catch: setting up an entity in India is simple in theory but compliance-heavy in practice.
You need to navigate:
None of these steps are insurmountable — but they need to be done right. A misstep can delay your operations, trigger fines, or hurt your reputation with regulators. That’s why most U.S. companies work with an experienced India-based entity setup partner who manages registration, compliance, and ongoing operations seamlessly.
If you’re not ready to open an entity yet, there’s a middle path: the Employer of Record (EOR) model.
In this setup, a local partner (like Team Management Services) hires employees on your behalf under its existing legal entity. You still choose and manage your team, but the partner handles payroll, benefits, and compliance.
This model is perfect for:
Once you’re ready to expand, you can easily transition from EOR to your own entity — often with the same partner’s help.
With a competent partner, the entire process can take as little as 6–8 weeks — much faster than waiting for a single H-1B petition to clear.
The age of depending on U.S. work visas for Indian talent is ending. Forward-thinking companies are already adapting — by shifting from immigration-dependent hiring to global workforce integration. Setting up an entity in India gives you direct access to talent, cost efficiency, and control — without the bureaucracy. And if you’re not ready for a full entity yet, the Employer of Record model lets you get started tomorrow.
Team Management Services helps U.S. businesses do both — from fast, compliant entity setup to seamless payroll management for remote Indian teams. If you’re looking to stay competitive while others get stuck in visa red tape, it’s time to act.
Build your presence in India, not your dependence on Washington.
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