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Employer of Record (EOR) in India
  • By Travis Kliever
  • Updated March 6, 2024
Travis Kliever
Travis Kliever
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Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.
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Employer of Record (EOR) in India

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An India Employer of Record (India EOR) helps international companies (or other foreign employers in general) to hire employees in India. An India EOR takes over employment compliance, payroll, and HR, leaving client companies to focus on core business. Looking for the best EOR in India? The Top 6 India EORs are Horizons, Talent500, Expat Orbit, Remunance, Asanify, and Wisemonk. 

Top 6 India Employers of Record

1. Horizons

Horizons provides a comprehensive suite of employer services tailored to the Indian market. Their in-depth knowledge of local labor laws, visa and work permit regulations, and HR practices allows them to navigate the legal complexities of hiring in India. Read our 2023 Horizons review to find out more about why Horizons is ranked the best global EOR.💡

💡 Pricing starts at $299 per employee per month.

2. Talent500

Talent500 is a global EOR and talent acquisition platform with unique access to the top India Tech talent. Talent500 is the only India EOR that offers an automated platform for recruitment and hiring in India and advanced AI analytics for the employee lifecycle.

💡 Pricing is available by custom quote. 

3. Expat Orbit

Expat Orbit stands out as an Employer of Record (EOR) in India by offering compliant hiring solutions for both international companies and expats in India. With deep expertise in the Indian employment marketplace, Expat Orbit will ensure compliant local hiring without the need for an entity or subsidiary.

💡 Pricing starts at $499 per employee per month. 

4. Remunance

Remunance is a global Employer of Record with a wide range of global expansion solutions in India. They offer “360°” HR and outsourcing support, with EOR and PEO solutions, recruitment, IT infrastructure support, and subsidiary incorporation. Remunance is the India EOR with the most comprehensive outsourcing and expansion solutions.

💡 Pricing is not available publicly. 

5. Asanify

Asanify is an India Employer of Record providing comprehensive HRIS, concierge, and contractor management services. For companies that need a full India HR and payroll solution compliant with local laws, Asanify is an excellent choice.

💡 EOR services start from $199 per employee per month. 

6. Wisemonk

Wisemonk is a trusted India EOR that not only hires employees on your behalf in India and 150 other countries but also provides recruitment services. At $150 per employee per month, Wisemonk is also the most cost-effective global EOR for hiring in India. If you are searching for an Employer of Record that can also source highly qualified staff for you in India, Wisemonk is an excellent choice.

💡 $150 per employee per month.

What is an India EOR?

india employer of record eor

An India EOR provides a wide range of services designed to facilitate the hiring and managing of employees in India for foreign companies. These services typically include:

  1. Hiring and Onboarding
    The EOR helps with recruitment, ensuring that all hiring practices comply with Indian labor laws. They handle the onboarding process once a candidate is selected.
  2. Employment Contracts

    The EOR drafts employment contracts in accordance with Indian law, protecting both the employee and the company (example matters to include employee’s salary, gratuity payment, employee entitlements, paid maternity leave and other paid leave, health insurance, mandatory employee benefits, working hours, specialist employment regulations, probationary period, national holidays, minimum annual bonus, provident fund contributions, and notice period).

  3. Payroll Management 
    The EOR handles all aspects of payroll, including withholding and remitting necessary payroll taxes, making social security contributions (such as contributions to the Employees’ Provident Fund), and ensuring all payments are made on time and in full.
  4. Benefits Administration
    The EOR may assist in administering employee benefits, which can include health insurance, retirement contributions, and other perks. They ensure these benefits meet the standards set by Indian law.
  5. Legal Compliance
    The EOR ensures compliance with all local labor laws and regulations. This includes everything from minimum wage laws to workplace safety regulations.
  6. Risk Management
    The EOR helps to manage risks related to employment, including potential disputes or issues that arise between the employer and employee.
  7. Termination and Offboarding 
    Should the need arise to terminate the employment contract, the EOR will manage the process following local laws to minimize potential legal issues.
  8. HR Support
    The EOR may provide ongoing HR support, including managing employee records, handling leave requests, and resolving HR-related issues.

These services can be invaluable for companies looking to expand into India without establishing a full-fledged operation in the country, as they allow the company to focus on its core business. At the same time, the EOR handles the complexities of local employment.

Benefits of an India Employer of Record

Engaging an Employer of Record (EOR) in India can provide several benefits to foreign companies looking to expand their operations or hire employees in India:

  1. Ease of Entry: An EOR allows a company to quickly and easily start operations in India without the need to establish a legal entity or navigate the complexities of setting up a business in the country.
  2. Compliance: An EOR ensures that the company is compliant with all local labor laws and regulations, reducing the risk of legal issues or penalties.
  3. Risk Management: The EOR can help manage employment-related risks, including potential disputes with employees. They can also handle employee terminations in accordance with local laws.
  4. Cost Savings: By leveraging the EOR’s existing infrastructure and expertise, a company can save on the cost of establishing and maintaining its own HR and legal departments in India.
  5. Local Expertise: An EOR will have local knowledge and expertise that can be invaluable in navigating the Indian labor market and ensuring successful operations in the country.
  6. Flexibility: An EOR offers flexibility, allowing a company to scale up or down more easily in response to changing business needs.

Remember, while there are many benefits to using an EOR, it’s also important to carefully consider the costs and potential downsides. It’s advisable to consult with legal and business professionals before making the decision to engage an EOR.

Why Opt for an EOR When Entering the Indian Market?

India’s burgeoning economy and diverse talent pool make it a captivating destination for international businesses with global hiring in mind. However, establishing a local entity can be a complex and time-consuming endeavor, riddled with intricate labor laws, tax regulations, and logistical hurdles. Fortunately, there’s a more efficient and agile approach: partnering with an employer of record in India.

Unparalleled Speed and Simplicity

Forget the months-long process of entity formation and legal compliance. An EOR enables rapid talent acquisition, allowing you to onboard employees within days. Their expertise in navigating local requirements streamlines the process, eliminating administrative burdens and empowering you to focus on strategic priorities in what is, of course, a foreign country for your business.

Enhanced Flexibility and Scalability

Adapting to market fluctuations is critical in today’s dynamic business landscape, but relying on contract workers can be risky. An EOR provides the agility to scale your workforce up or down seamlessly by adding new employees whenever you need, without the constraints of a local entity. This flexibility eliminates the risks associated with over-committing to a permanent establishment, letting you test the Indian market with minimal upfront investment.

Minimized Risk and Compliance

Navigating India’s intricate legal landscape can be daunting for international businesses. An EOR serves as your trusted compliance partner, ensuring adherence to all labor laws, tax regulations, and social security provisions – whether you are paying employees or looking to get to grips with tax laws, the EOR can help you navigate the intricacies faced by Indian companies. This expert guidance on global payroll mitigates potential risks and protects your company from legal liabilities (particularly with Indian labor laws).

Empowering Focus on Core Business

Outsourcing HR and administrative tasks to an EOR liberates your resources and allows you to concentrate on core business activities. Becoming the legal employer for your Indian workers, the EOR handles employment contracts, payroll processing, benefits administration, and HR management, enabling you to maximize your team’s efficiency and dedication to strategic initiatives.

Global Consistency and Seamless Integration

An EOR fosters seamless integration of your Indian workforce with your existing global workforce. Centralized HR processes and standardized policies ensure consistency and simplify management across borders. This fosters a cohesive and collaborative working environment, regardless of location.

Entering the Indian market with an EOR offers a strategic advantage, delivering unparalleled speed, flexibility, and risk mitigation. By bypassing the complexities of establishing a local entity, you can focus on what truly matters: building a successful and thriving business in India. Embrace the agility and expertise of an EOR, and unlock the immense potential of this dynamic market with confidence.

How to engage an India Employer of Record

Engaging an Employer of Record (EOR) in India involves several steps, and it’s advisable to consult with legal and business professionals to ensure a smooth process. Here’s a general guide:

  1. Research: Start by researching potential EORs in India. Look for companies with a strong track record, good reviews, and a thorough understanding of Indian employment laws and regulations. Consider factors like the EOR’s experience, cost, and range of services.
  2. Contact and Consultation: Once you’ve shortlisted a few potential EORs, reach out to them for a consultation. During this consultation, you can discuss your business needs, get a sense of their services, and ask any questions you may have. This is also a good time to discuss their fees.
  3. Proposal: Based on your consultation, the EOR will likely provide a proposal outlining the services they’ll provide, the cost, and other important details. Review this proposal carefully.
  4. Agreement: If you’re satisfied with the proposal, you’ll enter into an agreement with the EOR. This agreement should detail the responsibilities of each party, the fees, the term of the agreement, termination conditions, and other important factors. It’s advisable to have a lawyer review this agreement before signing.
  5. Onboarding: Once the agreement is signed, the EOR will start the process of onboarding your business. This will likely involve gathering information about your business, your employees, and your needs.
  6. Implementation: The EOR will then take over the responsibilities outlined in the agreement. This can include hiring employees, setting up payroll, ensuring legal compliance, and more.

Remember, each EOR might have a slightly different process, so it’s important to clarify expectations and procedures at the outset. Engaging an EOR can be a big step for a company, but with careful planning and a reputable partner, it can be a highly effective way to expand into the Indian market.

Disadvantages of an India Employer of Record

While there are many benefits to using an Employer of Record (EOR) in India, there are also potential disadvantages that should be considered:

  1. Cost: Engaging an EOR often involves paying fees for their services. Depending on the scale of your operation and the complexity of your needs, these costs may be significant.
  2. Dependence on EOR: The company becomes highly dependent on the EOR for critical functions such as payroll, compliance, and HR. If the EOR fails to perform adequately, it can have serious consequences for your business and your Indian employees.
  3. Confidentiality and Security: You will need to share sensitive company and employee information with the EOR, which could potentially be a risk if the EOR does not have robust data security measures in place.
  4. Quality of Service: The quality of services provided by EORs can vary. It’s essential to choose a reputable EOR with a proven track record to ensure a high level of service.

Remember, it’s important to weigh these potential downsides against the benefits to make an informed decision about whether an EOR is the right choice for your business.

Engage an EOR in India — choose wisely

Engaging an Employer of Record (EOR) in India can be a strategic move for foreign companies seeking to expand their operations or hire employees in the country. The EOR provides services that can alleviate the complexities of local employment laws and regulations, payroll and benefits administration, risk management, and HR support. It offers an easier way to enter the Indian market, ensure compliance, manage employment-related risks, and save on costs associated with establishing a local entity.

Factor Description Importance
Services Offered by EOR
Ensure the EOR’s services align with your company’s needs and address any pain points.
Industry Experience Does the EOR have experience in your specific industry or company size?
Choosing an EOR familiar with your industry’s regulations and challenges can ensure smoother onboarding and support.
Geographic Coverage Does the EOR operate in the locations where you have employees or plan to expand?
Confirm the EOR’s reach to avoid complications with legal and tax compliance across different regions.
Pricing and Fees Understand the fee structure, including upfront costs, monthly fees, and potential per-employee charges.
Transparency and clarity in pricing are crucial for budgeting and avoiding hidden costs.
Technology and Infrastructure Does the EOR offer a modern platform for managing payroll, HR, and compliance?
A sophisticated and secure platform improves efficiency, data accessibility, and employee self-service.
Reputation and Track Record Research the EOR’s client testimonials, industry recognition, and any compliance issues or legal disputes.
Partnering with a reliable and reputable EOR minimizes risk and protects your company’s reputation.
Communication and Customer Support Assess the EOR’s communication channels, response times, and level of support offered to clients.
Effective communication and readily available support are crucial for addressing concerns and building trust.
Scalability and Flexibility Can the EOR accommodate your company’s growth and adapt to changing needs?
Choose an EOR with the ability to scale its services as your business evolves.
Data Security and Privacy Understand the EOR’s data security measures and compliance with Indian data privacy regulations.
Protecting employee data and ensuring compliance are essential for avoiding legal risks and maintaining trust.
Exit Strategy Have a clear understanding of the termination process and any associated fees should you need to end the partnership with the EOR.
A smooth and transparent exit strategy protects both parties and avoids potential complications.


While an EOR can provide significant benefits and make it easier to expand into India, it’s essential for companies to carefully assess their needs, conduct thorough research, and consult with legal and business professionals before engaging an EOR. The decision should be based on guidance on the best Employer of Record services in India (like this post) as well as on carefully considering the benefits, potential drawbacks, and your company’s specific needs and capabilities.

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FAQs

An EOR can certainly help you hire just one employee in India. In fact, many businesses use EORs precisely for this reason - to start small operations in a new country without the need to set up a full legal entity. This can be a cost-effective solution if you only need a few employees in India.

No, while the EOR becomes the 'legal' employer for purposes of compliance, payroll, and benefits administration, you as the client company still maintain control over the day-to-day tasks, roles, and management of your employees. The EOR takes care of the administrative and legal aspects of employment, but the employees still perform their work according to your direction and control.

Remember, every EOR might have slightly different policies or services, so it's always a good idea to clarify any questions or concerns you might have directly with the EOR.

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