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I'm not sure how this would work. Perhaps you would first need to define the term "regular employee." In the U.S. the best way to define a regular employee is by the tax form. Generally a regular employee is considered a W-2 which means you have to do things such as pay into that employees social security (and other social programs) among other things. If your employee isn't a W-2 then he/she is generally a contractor.

Since an Indian citizen doesn't live in the U.S. then none of these sorts of laws apply. So, from the U.S. perspective, you would simply be a contractor and your services would be a tax write-off.

You specifically mentioned you aren't asking about companies which have a business in India, so that's out.

Conclusion: I don't know about Europe but I imagine it's the same as the U.S. Because you don't live in the U.S. you will always be a contractor and the only tax / legal implications is that payments towards your services are a write-off. You would be a regular employee in name only. You wouldn't necessarily receive any of the benefits that typically go along with the status of "regular employee."



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