India, with its large talent pool and growing reputation as a global technology hub, offers a promising solution to Europe’s talent shortages. However, for foreign companies, hiring in India comes with its own set of legal and administrative complexities.

Typically, employing workers in India requires establishing a local legal entity — a process that can be both costly and time-intensive. There’s also the potential risk of creating a permanent establishment, which could lead to significant tax liabilities.

Additionally, India has its own distinct labor laws, cultural norms, and employment practices. Without in-depth local knowledge, companies may find it difficult to attract and retain the right talent.