Employer of Record (EOR) in India
India remains a core destination for international talent engagement, whether for specialist technical roles, regional market entry, or ongoing project delivery. Yet the reality of hiring in India is complex: strict labour laws, evolving tax requirements, and tight scrutiny of foreign employers make direct hiring or contractor engagement a compliance risk for companies without a registered local presence.
A Global Employer of Record (EOR) allows organisations to legally employ staff in India without setting up a subsidiary or navigating entity registration. The Global EOR becomes the legal employer on record, handling payroll, statutory benefits, taxes, contracts, and HR compliance. Your business maintains operational control, while the Employer of Record (EOR) partner assumes full employment liability and delivers a streamlined route to workforce deployment.
This model is used by established multinational employers, fast-scaling firms, and companies seeking to test the Indian market before deeper investment. It supports both local and expatriate hires, ensuring all employment activities are conducted in line with Indian law and without exposing the client to permanent establishment or misclassification risk.
What Is a Global Employer of Record in India?
A Global Employer of Record in India is a third-party organisation legally authorised to employ staff on your behalf, without requiring your company to establish a local business entity. Unlike a local EOR limited to one country, a Global EOR can hire, pay, and manage employees across multiple international jurisdictions under one coordinated framework.
This means your business can onboard local or expatriate talent in India and other countries, with all contracts, payroll, and statutory compliance handled by a single provider. The Global EOR assumes full employer responsibility under Indian law, while you direct the day-to-day work.
The Global EOR model is used for rapid market entry, project-based hiring, and international workforce management, ensuring compliance, continuity, and scalability across India and beyond.
How the EOR Model Works in India
Using an Employer of Record (EOR) in India allows international companies to hire and manage both local and expatriate employees in full compliance with Indian labour, tax, and immigration law without the need to set up a local subsidiary or branch. The EOR acts as the legal employer for your workforce in India, assuming responsibility for all employment contracts, payroll, statutory contributions, and HR compliance.
How the process works in India:
- Talent Selection: You identify and select the professionals you need in India, whether local candidates or expatriates relocating to India.
- Employment Contracting: The EOR drafts and executes an Indian law-compliant employment contract on your behalf, tailored to local statutory requirements and your business needs.
- Onboarding & Registration: The EOR manages employee onboarding, mandatory background checks, and registration with relevant Indian statutory bodies (e.g., Provident Fund, Employee State Insurance).
- Immigration Support & Work Permit Sponsorship: For expatriate hires, the Global Employer of Record (EOR) sponsors work permits and employment visas, prepares required documentation, liaises with Indian authorities, and supports all aspects of immigration compliance for both the employee and eligible dependents. The EOR also manages renewals, tracks visa expiries, and ensures uninterrupted legal status throughout the employment term.
- Payroll & Tax Administration: The EOR processes monthly payroll, administers statutory benefits, and handles all tax deductions, filings, and payments to Indian authorities on schedule.
- Benefits & Compliance: Administration of all required benefits (such as Provident Fund, ESI, gratuity, leave, insurances) in line with Indian employment law.
- Ongoing HR Administration: The EOR manages absence, leave, statutory reporting, and supports any HR queries or lifecycle events during employment.
- Offboarding & Exit Management: On contract completion or termination, the EOR manages exit processes in accordance with Indian law, including notice, severance, final settlements, and deregistration from authorities.
Throughout, your company maintains operational control of the employee’s day-to-day activities. The EOR assumes all employer obligations, manages risk, and ensures ongoing compliance with India’s strict regulatory environment, covering both local and international staff.
When to Use a Global Employer of Record in India: 12 Scenarios
- First-Time Entry to the Indian Market:
A company needs to engage local staff or contractors in India before deciding whether to invest in a permanent entity. - Rapid Project Deployment:
A client wins a contract in India that requires immediate team mobilisation—faster than a new entity can be established. - Hiring Remote or Distributed Teams:
International employers want to build Indian remote teams to support regional or global operations, without setting up multiple branches. - Cross-Border Talent Acquisition:
The business wants to relocate or second employees from another country into India and requires compliant work permit sponsorship. - Short-Term Assignments or Secondments:
Global employers need to place staff in India for fixed-term projects or knowledge transfer without triggering PE risk. - Pilot Projects and Market Testing:
The company wants to test the Indian market or a new business model with minimal upfront investment and exit complexity. - Contractor-to-Employee Conversion:
Existing Indian contractors or freelancers need to be converted to full-time employees to mitigate misclassification risk or satisfy client/investor requirements. - Vendor Transitioning:
An employer needs to transfer a workforce from a legacy service provider or BPO arrangement into direct employment under their control. - Scaling Up or Down Quickly:
Business conditions demand rapid hiring or downsizing of teams in India, requiring flexible employment arrangements without entity-related administrative burden. - M&A Integration:
Following a merger or and acquisition, the company must quickly onboard Indian staff from the target business without waiting for legal restructuring. - Benefits Benchmarking and Retention:
An international company needs to offer competitive, locally compliant benefits to attract and retain Indian talent. - Compliance-Driven Restructuring:
The employer is exposed to risk due to improper classification, non-compliant payroll, or unregistered employment and needs a clean, compliant solution.
Compliance and Risk Management in India: What a Global EOR Shields You From
India’s employment landscape is unforgiving of compliance failures, regardless of whether you are hiring senior executives, technical specialists, white-collar professionals, blue-collar workers, or foreign nationals. The risks are real for every employment scenario.
Key risk factors EOR solves for:
- Permanent Establishment (PE):
Employing any category of worker, including managerial, technical, sales, or support staff, can expose your business to unplanned corporate tax and regulatory obligations in India. A Global EOR absorbs this risk by acting as the local employer of record, so you avoid Permanent Establishment exposure. - Worker Misclassification:
India’s authorities closely monitor the distinction between employees, contractors, and temporary workers. Whether you engage software developers, executive leaders, or manual staff, misclassification risks penalties, back taxes, and even criminal liability. Global EOR guarantees correct classification for all roles. - Sector-Specific Enforcement:
Compliance audits in India frequently target sectors such as IT, manufacturing, pharmaceuticals, and financial services. EOR coverage ensures that your workforce, regardless of their role or nationality, remains fully compliant and protected in all scenarios.
Deploy Local and Global Talent in India – Confidently and Compliantly
Hiring and managing employees in India, whether local staff, blue- or white-collar workers, executives, or expatriate specialists, requires absolute compliance with Indian law and a proactive approach to risk. A Global Employer of Record (EOR) gives your business a direct, flexible route to engaging talent without the delays, costs, or liabilities of setting up a local entity.
With a single, accountable partner, you gain operational control while meeting all legal and tax requirements for every worker category. This enables fast market entry, confident workforce expansion, and a straightforward exit strategy if needed.
If you need to employ in India, at any scale, for any role, for any duration, a Global EOR ensures you operate with clarity and security from day one.
Contact us to discuss your requirements or to receive a tailored EOR proposal for India.