Employer of Record India
Hire Without an Entity
Legally employ Indian talent in days without setting up a legal entity. We act as the statutory employer on record - handling EPFO, ESIC, TDS, Professional Tax, Shops Act compliance, POSH ICC, and full payroll administration across all five GCC states.
At a glance
5-10 days
to first hire
100%
statutory compliance
12% + 12%
EPFO contributions
Zero
penalty guarantee
What is included
11 EOR services - hire to offboard, fully compliant
Every statutory obligation from EPFO ECR filing to POSH ICC constitution, managed on-time so your GCC talent is fully protected and your parent company carries zero compliance risk.
Employment Contract Drafting
Every EOR engagement begins with an employment contract compliant with the applicable state Shops and Commercial Establishments Act. Contracts cover notice periods, IP assignment, confidentiality, non-solicitation, and termination procedures aligned to the employee's work location - Karnataka, Maharashtra, Telangana, Tamil Nadu, or Delhi NCR each have distinct requirements.
EPFO Registration & ECR Filing
Every employer with 20 or more employees must register with EPFO. The employer contributes 12% of basic and DA, of which 8.33% goes to Employee Pension Scheme (capped at INR 1,250/month) and 3.67% to EPF. The employee also contributes 12% of basic. We manage UAN generation, monthly ECR challan filing by the 15th, and annual PF passbook reconciliation.
ESIC Registration & Contribution
Employees earning up to INR 21,000 gross per month are covered under ESIC, providing medical, maternity, and disability benefits. The employer contributes 3.25% and the employee 0.75% of gross wages. We assess eligibility across all roles, register the establishment, and file monthly contributions by the 21st. GCC roles above INR 21,000 are ESIC-exempt.
Professional Tax (PT) by State
Professional Tax is levied by state governments and varies significantly: Karnataka charges INR 200/month for salaries above INR 15,000; Maharashtra charges INR 200/month (INR 300 in February) above INR 10,000; Telangana charges INR 200/month above INR 20,000. We calculate PT per state slab, deduct from payroll, and remit to the respective state Commercial Tax Department.
TDS Deduction under Section 192
TDS on salary must be computed monthly under Section 192 of the Income Tax Act. Since Finance Act 2023, the new tax regime (Section 115BAC) is the default but employees can opt for the old regime at year-start. We compute TDS under both regimes for each employee, collect Form 12BB declarations, and deposit TDS by the 7th of the following month.
Shops & Establishments Act Registration
Every commercial establishment must register under the state Shops and Commercial Establishments Act within 30 days of commencement. The registration governs working hours, leave entitlements (typically 15 earned leave days/year after 12 months), overtime rules, and public holidays. We handle registration in each state where employees work.
Leave Policy & Statutory Compliance
Indian law mandates Earned Leave (typically 15-21 days/year), Casual Leave (7-14 days/year), Sick Leave (7-14 days/year), and Maternity Leave (26 weeks under the Maternity Benefit Act 1961 for establishments with 10 or more employees). We draft leave policies, manage leave accrual, and ensure state-specific entitlements are correctly applied.
POSH ICC Setup (10+ employees)
The Prevention of Sexual Harassment (POSH) Act 2013 mandates every employer with 10 or more employees to constitute an Internal Complaints Committee (ICC). We draft the POSH policy, constitute the ICC with the required external member, train members, and file the annual report with the District Officer as required under Section 21.
Gratuity Administration
Gratuity is payable under the Payment of Gratuity Act 1972 to employees with 5 or more years of continuous service upon resignation, retirement, or termination. Formula: (last drawn basic + DA) x 15/26 x years of service, capped at INR 20 lakh tax-free. We provision gratuity monthly at 4.81% of basic and can arrange a group gratuity policy with LIC or private insurers.
Employee Onboarding & Offboarding
Full onboarding package: offer letter, appointment letter, NDA, IP assignment agreement, and background verification coordination (10 working days via KPMG or equivalent panel). Offboarding includes full and final settlement calculation (notice pay, earned leave encashment, gratuity if eligible), relieving letter, experience certificate, and Form 16 issuance.
Background Verification Coordination
We coordinate background verification through empanelled agencies covering education verification, prior employment (3-5 years), criminal record check (court records), address verification, and reference checks. Reports are delivered within 10 working days. For senior leadership or security-cleared roles, enhanced due diligence is available.
Coverage
EOR hiring across 5 GCC states
Each state has its own Shops Act, Professional Tax slab, and leave policy requirements. The employee's work location - not the company's registered office - determines which rules apply.
Bangalore
KATech, SaaS & AI/ML hires
Karnataka Shops Act 1961 - 15 EL days/year
- Koramangala
- Whitefield
- Electronic City
- Outer Ring Road
Hyderabad
TSCloud, platform & QA hires
Telangana Shops Act - PT INR 200/month above INR 20,000
- HITEC City
- Gachibowli
- Kondapur
- Madhapur
Pune
MHER&D, embedded & data engineering
Maharashtra Shops Act - INR 300 PT in February
- Hinjewadi
- Kharadi
- Baner
- Viman Nagar
Mumbai
MHBFSI, fintech & media GCC hires
Maharashtra Shops Act - HRA 50% exemption (metro)
- BKC
- Andheri East
- Lower Parel
- Powai
Delhi NCR
HRConsulting, policy & BD hires
Haryana / UP Shops Act - HRA 50% exemption (metro)
- Gurgaon
- Noida
- Connaught Place
- Aerocity
Deliverables
Every statutory obligation managed on time
From the employment contract on Day 1 to the Full and Final settlement on the last day - every HR and compliance obligation is handled so your team can focus on building the GCC.
Employment contract (state-specific)
Shops Act compliant with IP assignment and NDA
EPFO registration & UAN generation
Monthly ECR challan filed by the 15th
ESIC registration (if applicable)
Monthly contribution by the 21st for eligible employees
Professional Tax enrollment
Calculated per state slab, remitted monthly
TDS computation & Form 24Q
Monthly TDS deposit by the 7th, quarterly 24Q filing
Monthly payslips & Form 16
Detailed payslip each month; Form 16 by 15 June
POSH ICC constitution & policy
Required for establishments with 10 or more employees
Full & final settlement
Notice pay, EL encashment, gratuity, and relieving letter
Important compliance note
Workers employed for 240 or more days continuously under an EOR arrangement may attract regularization claims under the Contract Labour (Regulation and Abolition) Act 1970. We proactively advise on transitioning to a direct entity employment model at appropriate headcount milestones (typically 20-30 employees) to avoid regulatory risk. EPFO ECR late filing attracts interest at 12% per annum under Section 7Q plus damages of 5-25% under Section 14B.
FAQ
Common questions about Employer of Record in India
What is the difference between EOR and a staffing agency?
A staffing or contract-staffing agency deploys workers on short-term contracts and retains employer status as a pass-through. An EOR is the statutory employer with full liability for compliance, benefits, and termination. Under EOR, the worker is a permanent or long-term hire with full statutory benefits (PF, ESIC, gratuity), and the foreign company directs day-to-day work under a services agreement.
Is EOR recognized under Indian labor law?
Indian labor law does not have a specific statute for EOR, but the arrangement is structured as a principal-employer / contractor relationship governed by the Contract Labour (Regulation and Abolition) Act 1970 and the services agreement between IRPR Network and the foreign client. Workers employed for 240 or more days on a continuous basis may attract regularization claims, which is why our EOR model uses compliant employment contracts and we advise transition to entity formation at appropriate headcount milestones.
Can EOR employees receive ESOPs from the foreign parent?
Yes, but with FEMA restrictions. Indian residents receiving ESOPs from a foreign company must remit the exercise price through banking channels under LRS (Liberalised Remittance Scheme, USD 250,000/year limit). The acquisition is permitted under FEMA regulations under the automatic route. The perquisite - fair market value of shares on exercise date minus exercise price - is taxable as salary.
What is the typical EOR markup on CTC?
EOR services are typically priced as a percentage of CTC ranging from 8-15% depending on headcount, role complexity, and contract duration. This covers compliance management, payroll processing, HR administration, EPFO/ESIC filings, and legal support. At scale (50 or more employees), fixed per-seat pricing is usually more cost-effective.
How quickly can someone start work under EOR?
Once the services agreement is signed and employee details are provided, onboarding can be completed in 5-10 business days. This includes offer letter issuance, background verification initiation, UAN generation or linking, and payroll system setup. The employee is ready to receive their first salary within 30 days of start date.
What happens to PF and ESIC when we transition from EOR to our own entity?
PF contributions are portable via the UAN system - employees retain their PF balance and UAN when transferred to your Indian entity's EPFO registration. ESIC membership is also transferable. We handle the employer code transfer and ECR challan migration as part of the EOR-to-entity transition process to ensure no benefit gap for employees.
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Your first India hire, legally onboarded in 5-10 days.
We handle employment contracts, EPFO, ESIC, TDS, Professional Tax, POSH ICC, and payroll administration - so you can hire Indian talent without setting up an entity and without compliance risk.