The underlying goal for most businesses is to drive growth which can take a company to new and emerging markets. As one of the most dynamic regions in the world for business, India attracts an increasing number of foreign companies, especially in sectors such as IT and telecommunications. However, contrary to popular belief, the simplest and most effective way of setting up operations in a new market is not by establishing an entity, but by using a PEO. As one of Asia’s leading PEOs, INS Global allows your business to enter the Indian market and begin business operations without the usual administrative barriers involved in international expansion.
What is a PEO?
PEO stands for Professional Employment Organization and is a company that manages human resource (HR) outsourcing and other administrative tasks such as payroll and visa sponsorship on behalf of other companies. It is alternative means of having an in-house HR department in India and thus relives companies of the administrative and financial efforts required to enter new markets, allowing you to focus on your core business.
How does a PEO in India work?
Through our already established presence, INS Global is able to hire your talent (local or foreign) in India, exclusively on your company’s behalf. This means that your employee will be legally employed by INS Global as the Employer of Record (EOR) for compliance and tax purposes, however the employee will continue to carry out tasks for your company. The PEO also handles the visa sponsorship and onboarding process.
Advantages of using a PEO in India
Compliance – One of the biggest benefits of using a PEO in a new market such as India is that the PEO will manage compliance with local laws and employment regulations. This makes the process of international expansion easier since companies are able to hire employees in India in a fully compliant manner. As the legal Employer of Record, the PEO ensures that tax is deducted on a monthly basis and as paid on time to the relevant authorities.
Cost savings – Using a PEO can help you enter the Indian market without going down expensive and time consuming avenues, such as creating a separate legal entity in the country. We invoice you every month for your employee’s salary, expense reimbursement and management fee.
Test new markets – Entering a new stage of business development involves risks. By using a PEO, your company can save time and money without committing to other market-entry vehicles such as your own legal entity or subsidiary which could provide costly and unnecessary in the early stages of your development in India.
- Payroll management – Once your talent is hired in India, we manage them on our payroll on a monthly basis.
- Contract renewal – INS Global can provide support during contract renewal negotiations with your employees.
- Termination negotiation – Laws on employment termination can prove complex and time consuming to those unfamiliar with the relevant legal framework. With the help of a PEO in India, this process is made easier.
INS Global: Your expansion partner in India
Looking to take your business to India? Contact INS Global to discuss your project today. Our team’s capabilities span HR, legal and payroll and can evaluate the best strategy to grow your company and support your business expansion in India and elsewhere in Asia-Pacific.