Employer of Record
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Employer of Record

Employer of Record (EOR) and PEO in India

India’s robust democracy and partnerships with other powerful developed nations have led it to become one of the fastest-growing economies in the world. And as the second most populated country in the world, India has a young population accounting for over 50% of its people. Due to India’s young population, it is home to an astounding number of tech talent and a formidable hub for remote teams.

While India boasts a vast pool of highly skilled talent, expanding or building a team can be challenging. However, partnering with an Employer of Record (EOR) India or a Professional Employer Organization (PEO) India platform enables you to access the opportunities in the Indian market in a few days while the EOR in India handles the legal formalities of operating in India.

What is Employer of Record (EOR) in India?

An Employer of Record (EOR), sometimes called a global Professional Employer Organization (PEO), is a third-party platform that handles all employment activities on behalf of an organization. It serves as the legal employer of your workforce and bears the burden of employment-related legal requirements and responsibilities on behalf of the organization in India. Organizations expanding or building a team can efficiently carry out business operations without setting up an entity or a subsidiary in India by hiring, onboarding, making payments, and ensuring compliance with the employment laws.

How an Employer of Record (EOR) India platform works

An Employer of Record (EOR) India platform primarily enables organizations to legally and compliantly hire and onboard talent in India without setting up an entity or a subsidiary. The EOR ensures that every employment activity is carried out per the Indian employment laws.

The Employer of Record in India handles payroll management, onboarding of talent, hiring employees, benefits administration, immigration, visa sponsorship, and compliance for global organizations building teams in India.

Employer of Record services include:

  • Hiring and onboarding of talent
  • Payroll management — ensuring fast and accurate payments to employees in different parts of the world.
  • Drafting and maintaining locally drafted employment contracts.
  • Tax filing and complying with tax regulations.
  • Offering and administering comprehensive statutory benefits.
  • Ensuring compliance with the Indian employment laws and tax regulations.

Benefits of an Employer of Record in India

Building a team without a subsidiary

Expanding or building a team in India can be challenging and time-consuming. Establishing an entity is tedious for many companies and requires a prolonged government approval process. However, with a Professional Employer Organization (PEO) India platform, organizations can expand and build a team without setting up a subsidiary or an entity. The EOR takes care of all legal responsibilities and enables organizations to employ and remain compliant with the Indian employment laws.

Effective payroll management

Managing payroll is complicated, especially when handling payments for a globally distributed team. Inefficient payroll management results in unfavorable outcomes for the organization, such as penalties, discontent with team members, and a drop in productivity. While payroll management is a complex and challenging process, partnering with an Employer of Record (EOR) India platform simplifies the complex problems of managing payroll for a global team. The EOR enables organizations to make accurate and prompt employee payments and help administer payroll benefits.

Local laws compliance

Like every other country, India has unique employment laws and regulations that every organization operating in its market must comply with. For global organizations, dealing with the compliance of multiple countries can be overwhelming and seemingly impossible. However, an Employer of Record in India helps organizations stay compliant with Indian employment laws and tax regulations with no hassle.

Save time, money, and resources.

Establishing an entity in India is time-consuming, expensive, and requires a lot of resources. These resources and money-intensive factors include securing an office space, hiring a team, and administering statutory benefits. However, with an Employer of record in India, organizations can conduct business operations without setting up an entity, thereby saving time and money.

Skuad — an Employer of Record in India

An Employer of Record offers several benefits for companies planning to expand or build a team in India. It becomes a better option when organizations consider the complexities of the employment laws, the cost, and the resources required to set up a subsidiary in the country. Also, Employer of Record (EOR) India or a Professional Employer Organization (PEO) India platforms like Skuad provides an insulating layer of legal processes. This protection ensures global organizations encounter no issues in their employment plans to hire and carry out business operations in India.

To know more about Skuad, book a demo today.

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Skuad PTE Ltd

Skuad PTE Ltd

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