Hiring in India can be a powerful move for global companies looking to tap into top-tier talent at competitive costs. But navigating India’s labor laws, tax frameworks, and compliance obligations can be complex—especially without a local legal entity. That’s where an Employer of Record (EOR) in India steps in.
In this blog, we break down what an Employer of Record is, how it works in India, and why it might be the right solution for your company’s global expansion strategy in 2025.
What is an Employer of Record in India?
An Employer of Record is a third-party organization that legally employs talent on behalf of another company. While the client company manages day-to-day work responsibilities, the EOR takes care of all administrative tasks, including:
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Payroll and tax filings
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Employee contracts
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Benefits administration
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Social security contributions (EPF, ESIC)
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Labor law compliance
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Onboarding and termination
In the Indian context, an EOR enables foreign businesses to hire full-time Indian employees without having to set up a subsidiary or legal entity.
Why Use an EOR in India?
1. Quick Market Entry
Setting up a company in India can take months and requires deep legal knowledge. An EOR lets you bypass that by offering a fully compliant hiring model within days.
2. Ensure Legal Compliance
India’s labor ecosystem is governed by complex central and state-level laws (like the Shops and Establishments Act, Payment of Bonus Act, and Industrial Disputes Act). An experienced EOR ensures your business remains 100% compliant.
3. Focus on Core Operations
With the EOR managing HR, payroll, and compliance, you can focus on managing your remote team and scaling operations—not paperwork.
4. Attract Top Talent
EORs help structure competitive compensation packages, offer statutory benefits (Provident Fund, Gratuity, etc.), and support employees with localized onboarding, boosting retention and satisfaction.
How Does the EOR Process Work in India?
Here's how the hiring flow typically works:
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You Select a Candidate – The client company interviews and selects the employee.
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The EOR Issues a Contract – A compliant Indian employment contract is issued in line with labor laws and negotiated terms.
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Onboarding & Documentation – The EOR collects KYC documents, PAN, Aadhaar, and banking details.
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Payroll Management – The EOR runs monthly payroll, deducts taxes, and deposits statutory contributions.
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Ongoing Support – The EOR offers HR support, manages leave policies, and ensures compliance with any local employment law changes.
Key Benefits of Partnering with an Indian EOR
| Feature | Benefit |
|---|---|
| Speed | Hire within days, not months |
| Compliance | Full adherence to Indian labor laws |
| Cost Savings | Avoid entity setup and legal advisory fees |
| Scalability | Add/remove employees as needed |
| Data Protection | Adherence to India’s IT Act and GDPR-like standards |
Common Use Cases for an EOR in India
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Testing a new market without entity setup
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Hiring remote engineers, developers, and product teams
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Contract-to-permanent transitions
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Offshoring customer support or back-office teams
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Local HR presence without infrastructure investment
Employer Obligations Handled by the EOR
A good Indian EOR partner typically handles:
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Income Tax (TDS) deductions and filings
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Professional Tax (PT)
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Employee Provident Fund (EPF) contributions
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Employee State Insurance (ESIC) registration
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Gratuity and Bonus calculation
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Employment contract drafting
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Leave and attendance policy implementation
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Full and final settlements during exit
Why Global Companies Choose Asanify as Their EOR Partner in India
Asanify is one of India’s leading Employer of Record platforms, trusted by startups and global enterprises alike. Here’s what makes Asanify stand out:
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Fully compliant payroll and HRMS
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Quick onboarding across Tier 1 and Tier 2 cities
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Transparent monthly invoicing
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Dedicated legal and HR support
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Seamless integration with global tools like copyright and Deel
Final Thoughts
An Employer of Record in India provides a strategic advantage for global companies seeking to scale quickly, stay compliant, and attract the best talent. Whether you're looking to build a remote tech team or test the Indian market, EOR services offer a low-risk, high-reward path to expansion.
Ready to hire in India without setting up a local entity?
Partner with Asanify for a fully compliant, stress-free global hiring experience.