HR, PEO & Employer of Record (EOR) Services in India

Introduction

India is one of the world’s fastest-growing economies, offering a vast consumer market, a thriving tech ecosystem, and a highly skilled talent pool. With ongoing digital transformation, pro-business reforms, and cost-competitive advantages, the country has become a prime destination for global expansion. For companies seeking growth in Asia, India presents unmatched opportunities to scale, innovate, and build long-term success.

EOR & PEO Solutions in India

If you’re looking to hire employees in India without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in India acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into India quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in India?

An Employer of Record India (also known as an EOR provider) enables businesses to hire and onboard India employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in India, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in India but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your India hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in India

By using an EOR solution, companies can confidently build their team in India, access top talent in India, and stay focused on business growth — without getting tangled in bureaucracy.

Hiring in India

India is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in India successfully, it’s important to understand your options especially when you don’t have a legal entity in India.

That’s where using an Employer of Record in India makes all the difference.

Your Hiring Options in India

Businesses have two main paths to hire employees in India:

The second option is faster, lower-risk, and ideal for companies that want to test the Indian market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in India?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in India

Understanding how employment in India works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow Indian labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in India to handle these responsibilities with confidence.

Employment Contracts in India

All employees in India must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of India, and are usually signed before or on the first day of work.

By working with a India employer of record, you can ensure that all employment contracts in India are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in India involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in India handles this for you — managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

Indian labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in India receives all required benefits and that your business remains fully compliant with Indian employment law.

Termination & Notice Periods

Ending an employment contract in India requires adherence to statutory notice periods and compliance with labor laws governing termination. Typically, notice ranges from 30 to 90 days depending on the role, contract terms, and state-specific regulations.

An Employer of Record helps businesses manage this process seamlessly—ensuring lawful termination, accurate settlement of final dues (gratuity, leave encashment, provident fund), and mitigation of compliance risks, all while safeguarding employer reputation and employee rights.

Visas & Permits in India

If you’re planning to hire employees in India or bring in foreign talent, understanding India’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in India makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in India with confidence.

Work Permits for Foreign Employees in India

Foreign nationals who plan to work in India must obtain the appropriate employment visa, which is typically granted to highly skilled professionals, managers, and technical experts. The process requires sponsorship from an Indian entity and strict adherence to eligibility criteria, including minimum salary thresholds.

An Employer of Record streamlines this journey by managing visa compliance, coordinating with local authorities, and ensuring that foreign employees can begin work smoothly while businesses stay fully compliant with Indian regulations.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in India, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in India or send international staff temporarily, an EOR India solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in India, foreign companies typically need to register a legal entity in India and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with Indian labor laws.

Alternatively, you can use an EOR in India to bypass the need for a local entity. The India employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance — making it easier and faster to hire employees in India.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in India, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in India

How quickly can an EOR help me hire an employee in India?

An Employer of Record (EOR) can typically help you hire a local employee in India within 1–2 weeks, since contracts, payroll setup, and statutory registrations can be completed relatively quickly once candidate details are finalized. For foreign employees, however, the timeline is longer—work visa and permit processing may take several weeks to a few months depending on the role and documentation. Using an EOR significantly shortens the setup process compared to establishing a legal entity, allowing you to onboard talent much faster.

How does an EOR ensure compliance with India's complex labor laws?

This is a critical concern, as India has a complex and multi-layered legal framework with different central and state-level laws. Businesses frequently ask how an EOR keeps up with these laws (e.g., Factories Act, Shops and Establishments Act) and ensures that everything from employment contracts to benefits and termination is legally compliant.

Can an EOR help with visa and immigration processes for foreign talent?

Many companies want to send international staff to India. They need to know if an EOR can assist with securing the correct employment visas (E-Visas) and navigating other immigration procedures, which are often complex and require specific documentation.

Does an EOR handle the onboarding and offboarding process?

Companies are interested in a seamless employee lifecycle experience. They ask if the EOR manages tasks like drafting compliant employment contracts, collecting necessary documents (e.g., PAN and Aadhaar), and handling the final settlement and notice periods in the event of termination.

What are the risks of hiring an independent contractor in India instead of using an EOR?

Companies are often looking for the most flexible and cost-effective solution. They frequently ask about the legal risks, particularly the risk of "employee misclassification," and how an EOR can mitigate potential penalties and legal disputes that may arise from incorrectly classifying a worker.