PEO&Employer of Record India – Your Window to the Future
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PEO in India

Hire Globally, Pay Locally, Expand Effortlessly

 

INS Global is a local partner providing you with global Human Resources services. With the use of our PEO services, we can help you to set up your business, find employees, and start working in over 80 countries while at the same time cutting costs and limiting risks from local regulations.  

A PEO (Professional Employer Organization) service, often referred to as an EOR (Employer of Record), is a service provided by a globalization partner that helps companies to outsource their HR services into new countries to prevent them from having to create a separate legal entity in the new country.  

 

A PEO service in India can help your company by legally employing your staff and managing necessary employee services, like compensation packages and payroll outsourcing, saving your company both time and money while keeping legal complications to a minimum.  

Want to have a Team in India TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

Want to have a Team in India TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

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PEO in India - Summary

Reasons to Choose A PEO in India Over Company Incorporation

Establishing a company in a foreign country is a complex process that requires detailed knowledge of local legal regulations and a physical presence in the potential market. PEOs in India can help ease the burdens of this complexity by lending their legal expertise to their clients and acting as an intermediary preventing these companies from needing to incorporate a local entity.  

A Global PEO in India:  

  • Reduces Time
  • Improves Savings 
  • Limits Dangerous Bureaucratic and Legal Pitfalls 
  • Utilizes Knowledge and Local Networks 

  

Hiring an Overseas Employee

How a PEO in India Gives You a Competitive Advantage

Guaranteed Compliance with Local Laws

A PEO professional’s deep understanding of local regulatory and administrative processes ensures that your company complies with every aspect of local law.  

Less Time and Cost

Basic misunderstandings with HR can lead to a surprisingly large occurrence of fees and wasted time whenever entering a new market. PEO solutions help you limit these errors, saving time and money 

Increased Focus on Your Company’s Growth

Through the provision of several key services, like payroll outsourcing, recruitment, and contractor management, a PEO will handle HR processes that can help your market entry seamless while you focus on your company’s growth 

Fast Market Entry

Through the provision of several key services, like payroll outsourcing, recruitment, and contractor management, a PEO will handle HR processes that can help your market entry seamless while you focus on your company’s growth 

One Platform For Everything

For companies that may not have the budget or staffing to operate entire HR departments that can manage HR operations for overseas workers, PEOs provide all the services required to function efficiently.

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.

5/5

How Does a PEO in India Work?

INS Global’s PEO manages your employee recruitment or assignment needs in India by following four simple steps:  

  1. We find a solution that best meets your needs and requirements through in-depth discussion 
  2. Our professionals will provide a legal entity through which you will be able to hire staff and begin operating in India 
  3. We facilitate the complex legal and administrative aspects of recruiting and paying your employees 
  4. Your staff can continue working towards your company’s internal goals in the Indian market while we handle HR  

What’s The Difference Between PEO And Employer of Record?

Once you’ve made the decision to expand into a foreign market and have decided to pursue a PEO/EOR solution, it’s necessary first to understand what the differences between these two are in order to pick the one most suited to your needs:

  • A PEO is a private company that provides HR services to employees of another company 

  • The services provided by a PEO include tax, payroll outsourcing, and regulatory compliance

  • An EOR is similar to a PEO solution but is a company that acts to legally and officially hire employees for other companies
  • In addition, an EOR not only provides similar solutions to a PEO but also undertakes the legal liability of recruiting and employing workers
  • Under the provisions of a PEO agreement, the contract will remain between your company and the future employee
  • Under the provisions of an EOR agreement, the contract will be directed by your company, but will wholly be made between the Employer Of Record and the future employee

Labor Law in India

Employment Contracts In India

Indian labor law can be complex and confusing for those unfamiliar with it. It’s generally best practice to implement a strong employment contract that specifically spells out the terms of compensation, benefits, and termination.  

Any offer letter or employment contract in India should always explicitly state the salary in Indian Rupees and not in a foreign currency. While the current labor laws do not require that the contract be in writing, it’s a predominant practice to directly write all the terms and conditions of the contact and have it signed by all relevant parties.  

Fixed-term contracts are permitted in India as long as the employer will only be employing the future employee for a short duration. The general labor market trend is to use a probation period of up to 6 months. During this period, the employer will have the right to terminate the employee without any notice. The terms of a probation period should be directly stated in the employee’s contract.  

Working Hours In India

The Minimum Wages Act of 1948 states that any person who is employed for hire and is scheduled for work, whether skilled or unskilled, is entitled to receive a minimum wage. Every worker should receive at least one day’s rest every seven calendar days.  

Working hours in India are similar to other countries, with 40 hours of work per week and 8 hours per day. Workers are also entitled to receive at least 10.5 hours of personal time between working days. Any working hours that exceed this amount should be paid at the appropriate overtime rates.  

Overtime in India is typically calculated as 1.5x standard wage. 

Maternity Leave In India

In accordance with the Maternity Benefit Act, each female employee who has worked for the last 80 days at the same employer will be entitled to receive paid maternity leave for 26 weeks. Of these 26 weeks, only a maximum of 8 weeks should be used prior to the expected date of delivery.  

However, in the case of a female employee with two or more children, she will be entitled to 12 weeks of paid maternity leave. Additional paid leave will be prescribed in the event of a miscarriage or medical termination of the pregnancy.  

In addition to paid maternity leave, female employees are also protected from termination from employment based on their pregnancy. Also, the term and conditions of her contract cannot be changed to her disadvantage during her leave.  

There is currently no provision for paternity leave in India. 

Tax Law In India

Both domestic and foreign companies in India are required to pay taxes under the Income-tax Act. While domestic companies are taxed regarding their universal income, foreign companies are only taxed on income that’s earned inside India.  

Individuals are taxed in India at both state and national levels through both direct and indirect taxes.  

Efforts have been made since 2020 to simplify and lower tax rates across India, but the tax on personal income is still likely to be between 5-30% based on a progressive scale. 

Overall the system for individual taxation is very complicated. As it will be the employer’s responsibility to set up taxation for their employees, it’s recommended to partner with a local services provider that can manage tax deductions on the company’s behalf. Click here for calculator. 

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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