Bumper Posted February 8, 2013 Posted February 8, 2013 My company is headquartered in the US. I am researching setting up an off-shore development center in India (Chennai or Bangalore) for my company. I am faced with a no. of questions. Any pointers you can provide (no not internet, i mean corporate law firms or people experience in this domain) will be greatly appreciated. 1) After researching subsidiary vs branch office in India, i have come to a conclusion that a branch office is probably the right one for us. I need to understand how taxes are computed for branch office if lets say, 10% of the product is developed in India. Assume that the parent company makes $100M in revenues, with a net income of $1M 2) What does it cost to setup the branch office entity in India ? Any annual maintenance costs for the entity in terms of legal/tax help ? 3) I know a no. of you are employed in India as software engineers. I'd appreciate your inputs on the below: a) Is a salary of 10Lakhs per annum competitive for a software engineer with 5 years experience ? b) Approx what does medical insurance cost to the employee and the employer ? What type of coverage does your employer provide ? c) Any other benefits that must be considered by an employer other than salary, bonus, medical insurance ? Thanks in advance.
urbestfriend Posted February 8, 2013 Posted February 8, 2013 a) Is a salary of 10Lakhs per annum competitive for a software engineer with 5 years experience ? Depending on what kind of skill-sets you are looking for. You may have to pay more if you are looking for rare skillsets. But generally 10 Lakhs to 12 Lakhs is what a software engineer makes for 5 to 6 years of experience. b) Approx what does medical insurance cost to the employee and the employer ? What type of coverage does your employer provide ? Typically companies provide medical insurance coverage of 2Lkahs to 5Lakhs / year to any member of the employee.. c) Any other benefits that must be considered by an employer other than salary, bonus, medical insurance ? None that I think of to a non-managerial level employee.
moniker Posted February 9, 2013 Posted February 9, 2013 a) Is a salary of 10Lakhs per annum competitive for a software engineer with 5 years experience ? That's quite good. I have got a couple of years of exp, please let me know if you conduct any Walk-in. :--D b) Approx what does medical insurance cost to the employee and the employer ? What type of coverage does your employer provide ? Not sure how much my employer spends, but I pay around Rs 5000 every year for a basic health cover, that includes hospitalization charges of up to Rs 2 Lakhs. c) Any other benefits that must be considered by an employer other than salary, bonus, medical insurance ? You can consider providing these: 1) Allowances and cabs to drop and pick up people working in shifts. 2) Education assistance and granting sabbatical to employees who wish to pursue higher education. 3) If you are planning to set up offices in the suburbs to cut costs, providing company transport service could be necessary.
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