India’s fast-growing workforce, strong technical capabilities, and cost advantages have made it a top destination for global companies looking to scale remotely. But hiring in India comes with regulatory complexities—from tax compliance to social security contributions. If you’re not ready to set up a legal entity, an Employer of Record (EOR) in India offers a smart, compliant shortcut.
In this guide, we’ll explain what an EOR does, how it works in India, and when your company should consider using one.
What is an Employer of Record (EOR)?
An Employer of Record is a legal partner that takes on the employment responsibilities on behalf of your company. While your team manages the employee’s day-to-day responsibilities, the EOR becomes the legal employer for:
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Payroll administration
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Tax deductions and government filings
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Employee contracts and documentation
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Benefits and social security contributions
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HR compliance with local labor laws
This arrangement allows you to hire employees in India without incorporating a local business entity.
How Does an EOR Work in India?
The EOR model in India is designed to protect both foreign employers and local employees. Here’s how the hiring process typically unfolds:
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You choose a candidate – You interview and select talent independently.
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The EOR issues a compliant offer letter – The employee signs a contract under the EOR’s name.
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Statutory onboarding – The EOR collects employee documents and registers them for tax and social benefits (EPF, ESIC).
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Monthly payroll and deductions – The EOR calculates taxes, social contributions, and delivers payslips.
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Ongoing compliance – The EOR tracks labor law changes, holidays, PF limits, and ensures HR compliance.
Everything is handled in accordance with India’s regulatory framework, freeing you from local complexities.
When Should You Use an EOR in India?
Using an EOR is ideal if:
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You're hiring your first employees in India
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You want to test the Indian market without long-term commitment
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You need to hire quickly without waiting for entity registration
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You're managing contractors and want to transition them to full-time
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You're scaling teams in multiple Indian states with different local laws
Key Benefits of Using an Indian EOR
| Benefit | Description |
|---|---|
| Speed | Onboard talent in 1–2 weeks vs. 3–6 months for entity setup |
| Risk Mitigation | Avoid penalties from non-compliance with tax, PF, or labor laws |
| HR Simplicity | No need to hire a local HR or finance team |
| Scalability | Add or remove headcount flexibly |
| Employee Satisfaction | Professional HR processes, insurance, and local benefits boost retention |
Compliance Made Easy
Indian employment laws require companies to comply with a wide range of mandates, including:
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Income Tax (TDS) on salaries
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Provident Fund (PF) contributions (12% each from employer and employee)
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Professional Tax (varies by state)
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ESIC (Employee State Insurance) for low-income workers
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Gratuity Act compliance for employees with over 5 years of service
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Bonus obligations based on salary thresholds
Missing any of these obligations can result in heavy fines. A capable EOR ensures everything is handled correctly—so you don’t have to worry.
Why Global Businesses Trust Asanify as Their EOR in India
Asanify has helped hundreds of global companies hire, onboard, and manage Indian employees with complete compliance. Here’s why companies prefer us:
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Fast onboarding and digital document management
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Automated payroll and payslip generation
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Dedicated HR and compliance support
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Transparent monthly pricing—no hidden costs
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Employee self-service tools (leave, tax declarations, payslips)
Whether you're hiring one engineer or building a full team, Asanify makes it effortless.
Final Thoughts
India offers immense potential for global companies—but without proper compliance, local hiring can become risky and time-consuming. An Employer of Record gives you the flexibility to build your team in India without the red tape of setting up a subsidiary.
Ready to hire top talent in India the easy way?
Partner with Asanify to onboard employees legally, quickly, and confidently.