Reading: As a software consultant, a friend of my colleague from the UK wants me to contribute to an online IT project in my spare time, offering hourly pay. However, he’s suggested setting up a company in my wife’s name in India so he can transfer the payment to that account. Is this a legal way to receive money from a foreign company? If not, what are the legal avenues for receiving payment for IT services offered to a company overseas?

As a software consultant, a friend of my colleague from the UK wants me to contribute to an online IT project in my spare time, offering hourly pay. However, he’s suggested setting up a company in my wife’s name in India so he can transfer the payment to that account. Is this a legal way to receive money from a foreign company? If not, what are the legal avenues for receiving payment for IT services offered to a company overseas?

Last updated: August 25, 2025 1:04 pm

Apni Law

2 years ago

Law Forum › Category: Corporate › As a software consultant, a friend of my colleague from the UK wants me to contribute to an online IT project in my spare time, offering hourly pay. However, he’s suggested setting up a company in my wife’s name in India so he can transfer the payment to that account. Is this a legal way to receive money from a foreign company? If not, what are the legal avenues for receiving payment for IT services offered to a company overseas?

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Apni Law Staff asked 2 years ago

As a software consultant, a friend of my colleague from the UK wants me to contribute to an online IT project in my spare time, offering hourly pay. However, he’s suggested setting up a company in my wife’s name in India so he can transfer the payment to that account. Is this a legal way to receive money from a foreign company? If not, what are the legal avenues for receiving payment for IT services offered to a company overseas?

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Apni Law Staff answered 2 years ago

Setting up a company in your wife’s name solely for receiving payments from a foreign company is not a legal way to receive money in India. This could be considered tax evasion and might attract penalties. You should register as a freelancer or set up a legitimate Indian company to receive payment for IT services rendered to a foreign company, ensuring compliance with tax regulations and foreign exchange laws.