An Employer of Record in India is a locally registered company that legally employs your staff on your behalf. First, it signs the employment contract. Then it runs payroll and files Provident Fund, ESIC and income tax, while you direct the daily work. As a result, you do not need your own Indian entity.

The EOR fee at EOR Services India starts from $49 per employee per month. But salary and employer statutory contributions are paid on top, and they add roughly 4% to 12% of gross salary depending on pay.

No. Since EOR Services India is the legal employer, a foreign company can hire in India without setting up a subsidiary or branch.

An EOR is the legal employer of a worker you have found, and you need no Indian entity. By comparison, a PEO shares employment duties with you and works only where you already have your own registered Indian entity.

Most Indian hires start in one to three weeks once the contract has been signed and the documents are in. But a foreign national who needs a visa takes roughly 2 to 3 months, depending on the country.

The EOR pays employer Provident Fund at 12% of PF wages up to the ₹25,000 monthly ceiling (from 17 September 2026), employer ESIC at 3.25% for wages up to ₹21,000, and provides for gratuity. It also deducts income tax at source.

Yes, where the state charges it. For instance, Karnataka, Maharashtra and Telangana charge Professional Tax, while Delhi, Haryana and Uttar Pradesh do not.

Final settlement is due within 2 working days of the employee leaving. Gratuity, however, is paid after 5 years of continuous service. Fixed term employees who joined on or after 21 November 2025 will qualify after 1 year.