Employer of Record (EOR) in India

Hire Globally, Pay Locally, Expand Effortlessly

We serve as your Employer of Record in India, with its developing economy and large, skilled workforce, presents an attractive opportunity for international businesses.

However, safely getting around India’s complex regulatory environment, including its labor laws and tax system, can be daunting. To help you enter the market, an Employer of Record (EOR) in India acts as your local expert and support system, ensuring a seamless setup process and ongoing regulatory compliance.

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.

How an Employer of Record in India Works in 3 Steps

Step 1: Needs Assessment & Strategic Planning

The journey to mastery of the Indian market begins with a collaborative discussion between you and an Employer of Record like INS Global. Expansion experts delve into your specific goals for India, including the number and roles of employees you plan to hire and your desired timeline.

This initial consultation ensures the Employer of Record understands your vision and tailors their services to best integrate your needs with India’s unique tax system and labor laws.

Step 2: Seamless Setup, Hiring & Onboarding

Whether you’re building a new team in India or transferring existing staff, the Employer of Record handles the legalities of hiring or transferring staff on your behalf. This includes visa and work permit applications, ensuring compliance with India’s regulations.

An Employer of Records expertise and local resources allow them to act as the legal employer in India from day one, eliminating the need to establish your own entity and saving you significant time and resources.

Step 3: Ongoing Support & Confidence in Compliance

Once your employees are operational, the Employer of Record takes over ongoing HR and payroll functions in India. This includes processing salaries, managing employee benefits, and taking care of Provident Fund (PF) contributions.

The Employer of Record acts as your HR liaison between you and your India team, handling any administrative tasks or employee concerns. By outsourcing these complexities, you gain peace of mind, allowing you to focus on growing your business in India.

The Benefits of an Indian Employer of Record

Seamless Setup

Avoid the complexities of navigating India’s unique tax system and labor laws. An Employer of Record streamlines the setup process so you’re ensured total legal and regulatory compliance from the start.

Ongoing Compliance Expertise

India’s regulations can be intricate and may differ according to the state or locality. Employer of Record s like INS Global possess the expertise to ensure your business remains compliant with local tax laws, labor regulations, and social security contributions.

Reduced Risks and Liabilities

An Employer of Record acts as the legal employer for your staff in India, minimizing the risks associated with employment regulations and ensuring compliance.

Focus on Your Business Goals

The right support lets you offload HR tasks like onboarding, payroll processing, and tax administration to your Employer of Record . This allows you to focus on achieving your business goals in India.

Effective Budgeting

For smaller teams or companies with temporary needs, Employer of Record services can be more cost-efficient than establishing a local subsidiary as you avoid upfront incorporation costs and ongoing administrative burdens.

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

Partnering with an Employer of Record vs. Company Incorporation in India

Company incorporation in India is often believed to be the only choice for expansion, but there are many comparative advantages that come with choosing to use an Employer of Record in India over opening a new company entity, such as:

Speed – India’s business setup process can be streamlined with an Employer of Record , allowing you to be operational and hire staff much more quickly. Company incorporation can take months of planning and paperwork, while an Employer of Record can have your local staff up and running in as little as a week.
Compliance – Both Employer of Records and incorporated companies must comply with India’s tax laws and labor regulations. However, Employer of Record s like INS Global already have the local expertise to navigate these complexities and ensure ongoing compliance without hiring in-house administrators.
Cost – For smaller teams or companies with temporary needs, Employer of Record services can be more cost-effective than establishing a local subsidiary as you avoid both high upfront incorporation costs and ongoing administrative overheads.
Control – Incorporation offers both more control and liability over HR, finances, and operations. However, Employer of Records can still provide a high level of control while minimizing your administrative workload and risk.

India Labor Law in a Nutshell

India’s business environment is known for its potential, but its labor laws can have hidden complexities that may not be apparent to those unfamiliar with the market:

Contracts – Employment contracts in India must be written in English or a recognized local language and clearly outline key terms of employment, including salary, benefits, working hours, termination clauses, and statutory minimum wage requirements. An Employer of Record can ensure your contracts comply with legal requirements and protect your interests by helping with each step of the hiring and onboarding process.
Probationary Periods – Probation periods are common in India and can last up to 6 months. An Employer of Record in India like INS Global can guide you on setting up probationary periods that adhere to local laws while allowing you to properly assess new employees.
Working Hours – Standard work hours in India are typically 48 hours per week, with limitations on overtime. Employer of Records help you track working hours and ensure compliance with overtime regulations to avoid penalties.
Paid Leave – Employees are entitled to various forms of paid leave in India, including national holidays, annual leave, sick leave, and statutory maternity leave. An Employer of Record in India can track and manage leave requests and ensure proper compensation on your behalf, so you’re always working according to India’s labor laws.
Provident Fund (PF) – Employers and employees contribute to the PF, a mandatory retirement savings scheme. Your Employer of Record in India handles these contributions for you as part of the standard payroll process.
Severance Pay – Severance pay is required by law under certain circumstances, such as termination by the employer without cause. An Employer of Record in India can guide you on severance pay practices and calculations to ensure compliance with local laws.

Navigating these intricacies in-house can be time-consuming and requires ongoing monitoring of legal updates. Instead, partnering with an Employer of Record in India like INS Global allows a team of experts to act as your local legal representatives, ensuring your business remains compliant with state and federal labor laws and protects you from potential risks.

5 Keys to Remember When Choosing the Best Employer of Record in India for Your Business

Selecting the right Employer of Record in India is crucial for a successful market entry. Here are 5 key factors to consider:

Experience and Reputation – Look for an Employer of Record like INS Global with a proven track record in India and a strong understanding of your industry. Online client testimonials and industry awards can indicate strong customer satisfaction.
Service Scope – Ensure the Employer of Record offers the services you need or can tailor their solutions to your specific situation. This might include visa and work permit assistance, payroll processing, tax compliance management, and helping you to navigate India’s unique tax system and labor laws.
Scalability – Choose an Employer of Record that can scale its services as your business and needs grow in India. They should be able to handle your increasing number of employees and evolving needs as your local project develops.
Communication and Transparency – Select an Employer of Record that provides clear and consistent communication from the start. They should keep you informed about regulatory changes, upcoming deadlines, and any potential issues in India. Look for a dedicated point of contact in your time zone and online portals for easy access to essential information on India’s tax and labor regulations.
Cost Structure – Compare pricing models from different Employer of Record providers in India to find the best deal that matches your level of needs. Ensure the fees are transparent and competitive with no hidden costs. Finally, don’t hesitate to seek third-party advice to ensure you’re getting the best value for your investment in an Employer of Record for your India operations.

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FAQs

What is an Employer of Record (EOR), and how does it work in India?

An Employer of Record in India acts as your legal employer for local employees, handling all HR, payroll, and compliance tasks on your behalf, ensuring you meet local regulations without needing to set up a legal entity.

What are the primary benefits of using an Employer of Record for business expansion in India?

Using an Indian Employer of Record streamlines the market entry process, ensures compliance with local laws, reduces administrative burden, and can be more cost-effective than setting up a subsidiary.

How does partnering with an Employer of Record compare to setting up a subsidiary in India?

An Indian Employer of Record offers faster setup, expertise in local compliance, and reduced administrative costs. Setting up a subsidiary provides more direct control but involves significant time and financial investment.

What services are typically included in an Employer of Record package in India?

Indian Employer of Record services typically include HR management, payroll processing, compliance with tax and labor laws, visa and work permit assistance, and managing employee benefits.

How does an Employer of Record ensure compliance with India's tax and labor laws?

Indian Employer of Records employ local experts who stay updated on regulatory changes and handle all compliance aspects, ensuring your business adheres to Indian tax and labor regulations.

Can an Employer of Record in India support the scaling of my business as it grows?

Yes, Employer of Records in India can scale their services to meet the growing needs of your business, managing increasing employee numbers and evolving compliance requirements as your operations expand in India.