Hiring in India has become a priority for companies looking to scale globally.
With one of the largest and most skilled workforces in the world, India offers access to developers, analysts, support teams and specialists at a fraction of the cost of hiring in the UK or US.
But for many businesses, one challenge stands in the way:
How do you legally hire employees in India without setting up a local company?
This is where an Employer of Record (EOR) comes in.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party provider that legally employs workers on your behalf in another country.
While the EOR is the official employer on paper, you still manage the employees day-to-day. They work for your business, follow your processes, and integrate into your team just like any other employee.
The EOR takes responsibility for:
- Employment contracts
- Payroll processing
- Tax deductions and filings
- Compliance with local labour laws
In simple terms, an EOR allows you to hire internationally without needing to establish a legal entity.
Why Companies Are Hiring in India
India has become one of the most attractive destinations for global hiring, particularly in technology and business services.
The country produces a large number of highly skilled professionals each year, especially in software engineering, data analysis and IT support. English is widely spoken, and many professionals have experience working with international companies.
Cost is also a major factor. Salaries in India are often significantly lower than in Western markets, allowing companies to scale teams more efficiently while maintaining quality.
For founders and HR leaders, this creates a compelling opportunity, if they can navigate the legal and operational complexities.
The Challenge of Hiring in India Without an EOR
Hiring employees directly in India is not as simple as offering a contract.
To employ staff legally, companies typically need to:
- Set up a registered legal entity
- Open local bank accounts
- Register for tax and employment schemes
- Manage ongoing compliance with Indian labour laws
This process can take months and requires local expertise. There are also ongoing responsibilities around payroll, statutory contributions and reporting.
For many businesses, particularly startups and companies testing new markets, this creates unnecessary friction.
How an EOR Simplifies Hiring in India
An EOR removes the need for all of that infrastructure.
Instead of setting up your own entity, you partner with an EOR that already has a legal presence in India. The EOR becomes the official employer, while you retain full control over the employees’ work and performance.
From your perspective, the process becomes much more straightforward. You identify the talent you want to hire, and the EOR takes care of onboarding, contracts, payroll and compliance.
This allows companies to start building teams in India quickly, without getting slowed down by administrative barriers.
Key Benefits of Using an EOR in India
One of the biggest advantages of using an EOR is speed. Instead of waiting months to establish a local entity, you can begin hiring in a matter of weeks.
Compliance is another major benefit. Indian employment laws include requirements around income tax, provident fund (PF), employee state insurance (ESI), and other statutory contributions. An EOR ensures all of these are handled correctly, reducing the risk of penalties or legal issues.
There’s also a financial advantage. By hiring directly in India through an EOR, companies gain access to local salary benchmarks rather than paying inflated agency rates. This often results in substantial cost savings over time.
Perhaps most importantly, an EOR allows you to build your own team. Unlike outsourcing, where work is handed to a third party, an EOR enables you to hire individuals who become part of your organisation.
EOR vs Setting Up a Local Entity in India
For some companies, setting up a subsidiary in India makes sense – particularly if they have long-term plans and a large number of employees.
However, for many businesses, it’s not the most practical first step.
Setting up an entity involves legal costs, administrative overhead, and ongoing compliance responsibilities. It also reduces flexibility if your hiring plans change.
An EOR provides a more agile alternative. You can enter the market quickly, hire the talent you need, and scale at your own pace. If your strategy evolves, you’re not tied into a complex corporate structure.
EOR vs Outsourcing in India
It’s common for companies to consider outsourcing as an alternative to using an EOR.
While both approaches provide access to global talent, they operate very differently.
Outsourcing involves paying a provider to deliver work, often with limited control over how that work is done. An EOR, by contrast, allows you to hire and manage your own employees.
This distinction becomes more important as your business grows. Companies that prioritise control, consistency and long-term team development tend to favour the EOR model.
What Does an EOR Cost in India?
EOR pricing typically consists of a monthly management fee per employee, plus the employee’s salary and statutory costs.
Fees vary depending on the provider, but many global platforms charge several hundred dollars per employee per month.
It’s important to look beyond just the headline price and consider what’s included. A good EOR should provide:
- Fully compliant employment contracts
- Reliable payroll processing
- Clear reporting and transparency
- Ongoing support for both employer and employee
When compared to the cost of setting up and maintaining a local entity or paying agency markups through outsourcing, an EOR is often a more cost-effective solution.
Is an EOR Legal in India?
Yes, using an Employer of Record in India is legal.
The EOR acts as the official employer and is responsible for ensuring compliance with all applicable laws and regulations. This includes tax filings, statutory contributions and employment protections.
For companies hiring internationally, this provides a secure and compliant way to expand into the Indian market.
Is an EOR Right for Your Business?
An EOR is particularly well suited to companies that want to move quickly and minimise risk.
If you’re testing the market, hiring a small to medium-sized team, or looking to scale without building local infrastructure, an EOR offers a flexible and efficient solution.
It’s also ideal for founders and HR teams who want to maintain direct control over employees, rather than relying on external providers.
How Orbit Offshore Helps You Hire in India
Orbit Offshore is designed to make hiring in India simple, compliant and scalable.
You stay in control of your team, who you hire, how they work, and how they integrate into your business. We take care of everything behind the scenes, including employment, payroll and compliance with Indian labour laws.
Beyond the basics, Orbit Offshore also supports recruitment, onboarding and operational setup, helping you build a team that feels like a natural extension of your company.
A Smarter Way to Build Your Team in India
Hiring in India no longer needs to be complicated.
With the right approach, you can access world-class talent, reduce costs and build a fully integrated team without the delays and risks traditionally associated with international expansion.
An Employer of Record makes that possible by combining the flexibility of global hiring with the structure and compliance your business needs to grow.
Ready to Hire in India Without the Complexity?
If you’re looking to build a team in India without setting up a local entity, Orbit Offshore can help.
We handle employment, payroll and compliance, so you can focus on hiring the right people and growing your business.
FAQS
- What is an Employer of Record in India?
An Employer of Record (EOR) is a company that legally employs workers on your behalf in India, handling payroll, taxes and compliance while you manage the employees.
- Do I need a legal entity to hire employees in India?
No. An EOR allows you to hire employees in India without setting up a local company, as they act as the legal employer.
- How much does an EOR cost in India?
Costs vary by provider, but typically include a monthly fee per employee plus salary and statutory contributions.
- Is using an EOR in India compliant with local laws?
Yes. A reputable EOR ensures full compliance with Indian employment laws, including tax and statutory requirements.
4) What are the benefits of using an EOR in India?
An EOR allows you to hire quickly, stay compliant, reduce administrative burden, and build your own team without setting up a local entity.
- Can I manage employees directly when using an EOR?
Yes. You retain full control over day-to-day management, while the EOR handles legal employment responsibilities.