Employer of Record Services in India: Everything Explained

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party organization that hires and manages employees on behalf of another company in a foreign country. The EOR becomes the legal employer, handling compliance, payroll, taxes, and HR-related tasks, while you retain control over the employee’s work and performance.

Why Use Employer of Record Services in India?

India is a global talent hub for IT, engineering, finance, and remote roles. But hiring here requires navigating local employment laws, labor codes, and tax regulations — often a slow, costly process if you set up a subsidiary.

That’s where Employer of Record services in India come in.

Benefits of using EOR in India:

• No need to establish a legal entity
• 100% legal process under the Indian labour law
• Rapid onboarding (as fast as 1–2 weeks)
• Access to skilled professionals
• 100% managed HR, payroll, and statutory compliance
• Scalable design for short-term or long-term growth

Services Offered by EOR Providers in India

A reliable Indian EOR typically handles:

• Employment contract creation (in English & local languages)
• Monthly payment of wages and salaries
• Income tax (TDS) and other statutory deductions (PF, ESI, gratuity)
• Employee benefits and health insurance
• Leave and attendance management
• Compliance with Indian employment and tax laws
• Onboarding and offboarding support
• HR documentation and reporting

EOR Compliance in India: What You Must Know

India has strict employment regulations. A good EOR ensures:

• Legally compliant employment contracts
• Correct PF & ESI deductions
• On-time tax and payroll filings
• Clear grievance and support mechanisms
• Reduced risk of disputes or misclassification

Who Should Consider EOR Services in India?

EOR is ideal for:

• Global startups entering India without a legal entity
• SMEs exploring India as a new market
• Consulting firms hiring short-term project talent
• Remote-first companies hiring Indian employees
• Enterprises expanding R&D or customer support

Read More: https://www.orbtrak.com/insights/employer-of-record-services-in-india-everything-explained-2025