Hire in India

Hiring in India

India offers a wealth of talent, with a labor force estimated at 607.7 million. Organizations from around the world have benefitted from hiring in India, however, the country’s labor laws can be complex. Employment relationships in India are governed by its constitution, treaties, statutes, and judicial precedents, as well as collective and individual contracts.

Given the complexity of Indian labor laws and the differences between central and state-level requirements, there’s a lot for organizations to understand before they start recruiting in India. It’s also important to be familiar with salary and wage benchmarks and the benefits provided in different sectors.

Relying on an employer of record (EOR) in India

An employer of record (EOR) provides an easier way for organizations to hire and pay local talent in India. Because of its in-country presence, the EOR can employ the workers a company needs and lease them to that company, taking care to comply with India’s labor laws. As a result, the organization doesn’t have to establish a legal presence or manage compliance in India.

The EOR can hire and onboard employees in as little as two weeks and manage ongoing responsibilities such as payroll, benefits, and taxes. A full-service EOR can also manage recruitment. Together, these EOR services significantly reduce the administrative burden for an organization.

Visit our employer of record services page to learn how we can help you meet your international employment needs in India.

Entity setup

While EOR is a faster, low-risk option for market entry and small teams, entity setup is better for long-term operations and large workforce expansion.  

When EOR might better suit your needs: 

• You need to hire employees quickly (one to two weeks). 

• You don't want to set up a legal entity and manage compliance. 

• You are testing the Indian market before long-term commitment. 

• You plan to hire fewer than 50 employees in India. 

• You need flexibility without significant investment. 

While EOR is a faster, low-risk option for market entry and small teams, entity setup is better for long-term operations and large workforce expansion.  

When an entity setup might better suit your needs: 

• You want full business control and plan to operate long term. 

• You need to sign contracts, open bank accounts, and own assets in India. 

• You are hiring 50+ employees (EOR costs become unsustainable). 

• You work in a regulated industry requiring business registration. 

• You want to protect your intellectual property under Indian law.

EOR as an alternative to PEO

In India, choosing an employer of record (EOR) over a professional employer organization (PEO) is often the better option for legal, administrative, and compliance-related reasons. A PEO shares compliance responsibilities with the company, meaning the foreign employer still holds some legal liabilities. The employer must set up a legal entity, be involved in tax-related filings, and arrange for employee benefits.  

An EOR, however, serves as the legal employer, meaning foreign companies can hire employees in India without setting up a local entity. An EOR enables hiring in India within days without registering a subsidiary and handles everything, including payroll, taxation, labor laws, employee benefits, and statutory compliance in India. 

If you're interested in expanding into India and a lack of speed or local expertise are among your top concerns, an employer of record (EOR) may be the best option for achieving your global growth objectives. 

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in India — often in as little as two weeks — without having to take on the cost and risk of establishing a local entity. 

Safeguard Global has more than 17 years' experience as an employer of record in countries around the globe. As an EOR in India, we're experts in hiring, employment, payroll, and benefits requirements for workers in India, and can get you started right away with local HR experts to help manage your international employment needs.