EMPLOYER OF RECORD (EOR) INDIA

Employer of Record in India: Hire Without an Entity

Hire employees in India quickly and compliantly, without setting up a legal entity. As your Employer of Record in India, we employ your team on your behalf and handle contracts, payroll, tax, statutory benefits and labour law compliance. You direct their day-to-day work.

1monthly invoice covering salary, statutory costs and fees
30+countries our clients come from
80+professionals: CAs, CSs, payroll and HR specialists
426client engagements completed in the last 5 years
01

What Is an Employer of Record in India?

An Employer of Record (EOR) is a local partner that becomes the legal employer of your staff in India, while you manage their work, goals and performance.

India attracts foreign businesses with its growth potential and a large pool of skilled professionals at competitive cost. But hiring directly normally needs an Indian entity, plus registrations for payroll tax, provident fund, state insurance and labour laws. An EOR removes that barrier. We issue compliant employment contracts, run payroll, deduct and deposit taxes and statutory contributions, and administer benefits and exits, all under our own registrations.

This makes an EOR a practical way for start-ups and global companies to test India's market before committing to a full set-up, or to hire a few key people while their Indian subsidiary is being incorporated.

02

When Should You Use an EOR in India?

  • Testing the Indian market. Hire a small sales, support or technical team before investing in an entity.
  • Hiring before your entity is ready. Onboard your country manager or first employees while incorporation and bank accounts are in progress.
  • Hiring a few remote employees. When a full entity would cost more to run than the team itself.
  • Moving fast. Start hiring in weeks rather than waiting months for an entity and its registrations.
  • Converting contractors. Move long-term contractors onto proper employment to reduce misclassification risk.
  • Project-based teams. Hire for a defined project without a permanent set-up.
03

What Our EOR Service Covers

1

Contracts & Onboarding

India-compliant employment contracts, offer letters, confidentiality and IP-assignment clauses, background checks and joining formalities.

2

Payroll & Income Tax

Monthly payroll processing, salary structuring, TDS deduction and deposit, quarterly TDS returns, Form 16 and payslips.

3

Statutory Contributions

Provident Fund, Employees' State Insurance where applicable, Professional Tax and Labour Welfare Fund, deposited and filed on time.

4

Benefits & Leave

Leave policies under state Shops & Establishment laws, statutory bonus, gratuity, maternity benefits, and optional health insurance.

5

HR Administration & Exits

Employee queries, expense reimbursements, appraisal-linked changes, resignations, terminations and full and final settlements.

6

Labour Law & POSH Compliance

Registrations, statutory registers, labour law compliance, and POSH policy and Internal Committee support.

04

EOR vs Your Own Entity vs Contractors

Employer of RecordOwn Indian EntityIndependent Contractors
Time to hireWeeksMonths (incorporation and registrations)Days
Indian entity neededNoYesNo
Legal employerThe EORYour companyNone (service contract)
Statutory benefitsFully providedFully providedNot provided
Compliance riskLow, managed by the EORLow, if well managedHigher: misclassification and PE risk
Best forSmall teams, market testing, interim hiringLarger, long-term operationsShort, genuinely independent assignments
05

Risks We Help You Manage

  • Permanent establishment (PE) risk. If EOR employees negotiate and conclude contracts, or carry out core revenue-generating work for the foreign company, Indian tax authorities may treat that as a taxable presence. We structure roles and agreements to manage this, with support from our PE risk advisory team.
  • Contractor misclassification. Long-term “contractors” who work like employees can trigger claims for statutory benefits. An EOR puts them on a compliant footing.
  • Intellectual property. Employment contracts include clear IP-assignment and confidentiality terms, so work product belongs to you.
  • Termination rules. Notice, severance and settlement are handled in line with the contract and applicable labour law.
06

How Our EOR Process Works

Requirement Call

We understand the roles, locations, salary budgets and timelines, and share a cost estimate including statutory costs.

Service Agreement

We sign an EOR agreement with your company covering scope, fees, IP and confidentiality.

Offer & Contract

We issue the offer letter and employment contract in line with your terms and Indian law.

Onboarding

We complete documentation, PF and other enrolments, payroll set-up and induction formalities.

Monthly Payroll & Invoice

We run payroll, deposit taxes and contributions, and send you one consolidated monthly invoice.

Ongoing HR & Compliance

We handle queries, changes, filings and exits, and report to you regularly.

07

Moving From EOR to Your Own Entity

Many clients start with an EOR and set up their own Indian subsidiary once the team grows. Because we also provide India entry strategy, incorporation, accounting and payroll services, we can plan that move for you. We incorporate the entity, transfer employees with minimal disruption, and address service continuity, gratuity and PF transfer, so your team experiences a smooth handover rather than a restart.

08

Why Choose AAPT & Associates as Your EOR in India

  • CA-led compliance. Payroll tax, PF, ESI and labour law are handled by qualified professionals, not just a payroll tool.
  • Tax and PE expertise in-house. Our tax team reviews structures for PE and cross-border tax exposure.
  • One partner from hire to entity. EOR, executive search, incorporation, payroll and accounting under one roof.
  • Transparent pricing. A clear breakdown of salary, statutory costs and our fee on every invoice.
  • Foreign-client experience. Clients from over 30 countries, with English reporting and time-zone-friendly support.
  • Responsive employee support. Your team in India has a local point of contact for payroll and HR questions.

Get an EOR Cost Estimate

09

Frequently Asked Questions

Is using an Employer of Record legal in India?
Yes. An EOR is a recognised way for foreign companies to engage employees in India without their own entity. The EOR is the legal employer and is responsible for employment contracts, payroll, tax deductions, statutory contributions and labour law compliance.
Can a foreign company hire employees in India without an entity?
Yes, through an Employer of Record. Without an entity or an EOR, a foreign company cannot easily run compliant Indian payroll, deduct TDS or register for Provident Fund and other statutory schemes.
Does an EOR create permanent establishment risk?
It can, depending on what the employees do. If they habitually negotiate or conclude contracts, or carry out core revenue-generating activities for the foreign company, there may be PE exposure. We review roles and agreements at the start to manage this risk.
What does an EOR in India cost?
The total cost includes the employee's gross salary, employer statutory contributions (such as PF and, where applicable, ESI and gratuity provision) and the EOR service fee. We share a role-wise cost estimate before you hire.
Who owns the intellectual property created by EOR employees?
Our employment contracts and EOR agreement include IP-assignment and confidentiality clauses, so the work product created for you belongs to your company.
Can we move EOR employees to our own entity later?
Yes. Once your Indian subsidiary is set up, employees can be transferred to it. We plan the transition, including continuity of service, gratuity and PF transfer, to minimise disruption.

Ready to hire in India without an entity?

Tell us about the roles you want to fill. We will share a cost estimate and an onboarding timeline, at no cost and with no obligation.

Book a Free EOR Consultation