Employer of Record Services in India: Everything Explained

Considering growing your business in India without establishing a legal entity? Your quickest and most compliant solution may bean Employer of Record (EOR).

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 comes in.

Benefits of using EOR in India:

• No need to establish a legal entity
• 100% legal process under 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

How Does an EOR Work in India?

Here’s a simple comparison:

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 statuary 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

How to Choose the Right Employer of Record in India

When choosing an EOR, evaluate:

• Local legal and HR compliance knowledge
• Transparent, scalable pricing
• Technology for tracking HR and payroll
• Employee support and engagement tools
• Exit terms and flexibility
• Data privacy and security policies

EOR vs. Setting Up a Company in India: Which is Better?

The Future of EOR in India (2025 and Beyond)

EOR adoption in India is expected to grow rapidly due to:

• The rise of remote work and global teams
• Increased demand for faster market entry
• Growing compliance complexity in employment laws

Final Thoughts

Employer of Record services in India provide a smart, scalable, and fully compliant solution for businesses looking to tap into India’s skilled workforce — without the burden of entity setup or legal risk.

Startup, SME or Enterprise, with an EOR you are able to hire quicker, remain compliant and reduce cost whilst concentrating on growth.

Need Help Getting Started?

At Orbtrak, we specialize in fast, reliable, and fully managed Employer of Record services in India. From compliant onboarding to local HR support — we've got you covered.

Explore Our EOR Services in India

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