Hiring Employees in India: A Guide for Foreign Companies

Last updated on
29th January, 2026
Quick Summary

Hiring employees in India? Learn exactly how to hire, onboard and pay compliantly, run payroll smoothly, and manage day-to-day employment without second-guessing.

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TL;DR
  • Foreign companies hire in India through three options: EOR ($99-$299/month, 2-3 weeks setup), own entity ($5,000-$15,000 setup, 4-6 months), or contractors (fastest but carries misclassification risk).
  • Employers pay mandatory 13-16% above gross salary for Provident Fund (12% of basic), Employee State Insurance (3.25% for salaries under ₹21,000/month), professional tax (₹200/month), and gratuity after 5 years.
  • Employment contracts require 30-90 day notice periods, 12-21 days earned leave annually, 26 weeks paid maternity leave, and employees expect health insurance coverage in competitive offers.
  • India prohibits at-will termination and requires documented performance issues, written warnings, and proper process before any termination or companies face labor court disputes and penalties.

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Hiring employees in India is one of the fastest ways to scale your global team without breaking the budget. But most foreign companies get stuck on the same questions: Do I need a legal entity in India? How much does it actually cost? What are the compliance requirements?

This guide walks you through everything you need to know to hire employees in India legally and compliantly. We'll cover hiring models (entity vs EOR vs contractors), real cost breakdowns, Indian employment laws that apply to foreign employers, how payroll and taxes work, benefits and leave policies, and how to handle terminations without legal headaches.

Whether you're a US company hiring your first developer in Bangalore or a UK business building an entire team in India, this is your practical roadmap to get it done right.

Let's start with the biggest question:

Can Global Companies Legally Hire Employees in India Without an Entity?[toc=Hire in India Legally]

Yes. Foreign companies can hire employees in India without setting up their own legal entity by using an Employer of Record (EOR). The EOR becomes the legal employer in India, while you manage the employee’s day-to-day work and performance.

Foreign companies can also work with independent contractors, but this can create misclassification risk if the role looks like full time employment. That’s why many foreign employers use an EOR for their first employees in India when they want speed plus legal compliance.

Do you need an Indian legal entity to hire employees?

No. You can hire employees in India without forming your own entity, as long as a legally registered employer issues the employment contract and runs payroll processing.

In practice, you have three paths: set up a local entity, use an EOR, or hire independent contractors. An own entity usually takes months and adds banking, administrative work, and ongoing compliance. With an EOR, most companies can start hiring within weeks.

Who is the legal employer in India?

With an Employer of Record, the EOR is the legal employer for employees in India.

They hold the employment agreement, run payroll, and handle statutory deductions like Employees’ Provident Fund (EPF), Employee State Insurance (ESI), and Professional Tax (PT). They also align payroll and contracts with local employment laws and Indian labor laws.

You still manage the employment relationship day to day. You define the job description, set goals, and review output. The EOR handles the legal and administrative layer.

What risks sit with the foreign company vs. the local employer?

The EOR is responsible for payroll management, statutory filings, and meeting deadlines under Indian employment laws. If statutory deductions or filings are missed, the EOR is accountable for fixing it.

You’re responsible for how the employee is managed in practice. Performance actions and termination decisions come from you, while the EOR helps ensure notice period rules, severance pay, and documentation follow local labor laws. Acting fairly and following due process still matters, even when the EOR is the legal employer.

Hiring Models in India Explained (Entity vs EOR vs Contractors)[toc=Hiring Options]

There are three ways foreign companies hire employees in India: setting up a local entity, using an Employer of Record (EOR), or working with independent contractors.

Each option differs in speed, cost, and legal compliance, so choosing the right model depends on how quickly you want to start hiring and how much operational responsibility you want to take on.

Below is what you need to know to pick the right hiring model:

Hiring Models in India.

1. Partner with an Employer of Record (EOR)

An EOR in India lets you hire full-time employees in India without your own entity. The EOR is the legal employer who handles employment contracts, payroll processing, statutory deductions, and compliance. You manage the employee's actual work.

Timeline: 2-3 weeks from signing up to onboarding your first hire.

Cost: Typically $99-$299 per employee per month, depending on the provider.

This is the fastest way for foreign companies to start hiring in India. You avoid entity setup costs and the EOR handles the provident fund, employee state insurance, professional tax, and all statutory filings. The tradeoff is the monthly fee and slightly less control over certain HR processes compared to having your own entity.

2. Setting up your own Indian entity

Setting up your own entity makes sense if you're planning to hire 20+ people or need full operational control in India. You'll typically set up a Private Limited Company, which requires a local director, a registered office, and navigating Indian corporate laws.

Timeline: 4-6 months from start to being able to hire your first employee.

Cost: $5,000-$15,000 in setup fees, plus ongoing accounting and compliance costs of $1,000-$2,000 monthly.

Once you have your own entity, you control everything. You're the direct employer, you run your own payroll management, and you handle statutory benefits yourself. But you're also fully responsible for legal compliance, payroll taxes, and understanding local labor laws. US companies often underestimate the ongoing administrative work this requires.

3. Hiring contractors in India

Some companies start with independent contractors to test the India market before hiring full-time employees. Contractors invoice for services, handle their own taxes, and work under a service agreement rather than an employment contract.

This approach carries misclassification risk in India. If the working relationship looks like employment, such as fixed hours, long-term engagement, or close supervision, authorities can treat the contractor as an employee. That can trigger payroll taxes, statutory deductions, penalties, and severance pay obligations.

Contractors are best suited for project-based or specialized work. For ongoing roles that resemble regular employment, hiring employees from the start is usually safer.

Hiring Model Comparison: Risk, Speed, Compliance, Control

  • Speed: Contractors (fastest) → EOR → Own entity
  • Upfront cost: Contractors (low) → EOR → Own entity
  • Ongoing cost at scale: Own entity (lowest) → EOR → Contractors
  • Compliance burden: Own entity (you manage everything) → Contractors (misclassification risk) → EOR (managed by provider)
  • Control: Own entity (full legal and operational control) → EOR (operational control) → Contractors (limited)

Most foreign companies follow a practical progression: start with an EOR for initial hires, then evaluate setting up an entity once headcount and long-term plans justify the investment.

What Does It Actually Cost to Hire an Employee in India?[toc=Cost to Hire Employees]

Hiring employees in India is more cost efficient than Western markets, but employee costs involve more than just the monthly salary. To budget correctly, you need to understand how compensation, statutory deductions, and benefits work together.

Below is a realistic breakdown of what foreign companies should account for when hiring employees in India:

Understanding CTC (Cost to Company) in India

CTC is the total cost you pay for an employee annually. It includes the employee's salary, your employer contributions to provident fund and insurance, and any benefits you offer.

If you offer someone ₹10,00,000 CTC (about $12,000 annually), that's not their take-home pay. About 12-15% goes to employer contributions for statutory benefits. Another 20-30% gets deducted from their gross salary for income tax and employee contributions.

Indian employees negotiate based on CTC, but they care most about in-hand salary. When making offers, clarify both numbers to avoid confusion.

Mandatory employer contributions and statutory costs

As an employer in India, you must contribute to these programs:

  • Employees Provident Fund (EPF): 12% of basic salary. This is India's retirement savings program. You contribute 12%, employee contributes 12%.
  • Employee State Insurance (ESI): 3.25% of gross salary for employees earning under ₹21,000/month. Employee contributes 0.75%. This covers medical benefits.
  • Professional Tax: ₹200/month (varies slightly by state). Small but mandatory.
  • Gratuity: You don't pay monthly, but you're liable for gratuity payments after an employee completes 5 years. It's 4.81% of basic salary per year of service.

Total employer burden: approximately 13-16% on top of the gross salary you offer.

Sample salary breakup (INR → USD)

Here's a realistic example for a mid-level software developer in India:

Annual CTC: ₹12,00,000 ($14,400)

  • Basic Salary: ₹6,00,000
  • HRA (Housing): ₹2,40,000
  • Other Allowances: ₹1,80,000
  • Employer PF: ₹72,000 (12% of basic)
  • Employer ESI/other: ₹48,000

Employee gets (gross monthly): ₹85,000 ($1,020)

After deductions (take-home): ₹65,000-70,000 ($780-840)

The gap between CTC and take-home surprises many foreign employers. Budget based on CTC, but explain take-home when making offers.

Try our fully loaded cost calculator now and take the first step towards building your world-class team in India: Salary Calculator India: Simplify Your Take-Home Pay Calculation.

Typical EOR pricing and fee structures

Most EORs in India charge a flat monthly fee per employee: $99-$299 per employee depending on service level and provider size.

This covers payroll processing, statutory compliance, employment contracts, and handling all filings. Some EORs charge setup fees ($200-500 per employee), others don't.

The EOR pays the employee's salary and statutory contributions. You reimburse them via international payments, usually monthly. They handle the currency conversion and local bank account requirements.

Costs global companies usually underestimate

  • Health insurance: Not mandatory, but expected. Budget ₹15,000-30,000 ($180-360) annually per employee or you'll struggle with hiring.
  • Bonus expectations: Many Indian companies pay 1-2 months bonus annually. Not required by law, but common in the private sector.
  • FX fees and wire costs: International payments to India cost $15-40 per transfer. Monthly payroll plus quarterly tax filings means 15+ transfers yearly per employee.
  • Paid leave and holidays: India has three national holidays plus 10-12 public holidays. Employees also get 12-21 days earned leave. Factor this into project timelines.
  • Severance risk: If you terminate without cause, you may owe 1-3 months notice period salary plus any earned leave encashment.

Budget 20-25% above the advertised CTC to cover all employer obligations, benefits, and processing costs.

Read more: What is the Cost of Hiring an Employee in India?

Indian Employment Laws Foreign Companies Must Comply With[toc=Indian Labour Law]

If you hire employees in India, Indian employment laws apply regardless of where your company is headquartered. These laws govern how employees are hired, paid, managed, and exited, and non-compliance can lead to penalties, disputes, and operational restrictions.

Foreign companies are not exempt from local labor laws simply because they operate remotely or are incorporated elsewhere.

Employment laws that apply to foreign employers

Foreign companies hiring in India follow the same local regulations as Indian companies. There's no exemption for being headquartered elsewhere.

Key laws: Shops & Establishments Act (state registration), Payment of Wages Act (timely payment), Payment of Bonus Act (annual bonus eligibility), and Industrial Disputes Act (termination procedures).

With your own entity, you're directly liable. With an EOR, they handle compliance but you should understand what's required.

Shops & Establishments Act (what it practically means)

Every business employing people needs Shop & Establishment registration in the state where employees work. This is your license to employ people.

Get this before hiring your first employee. It covers working hours limits (48 hours/week), overtime pay rules (2x regular rate), and record-keeping requirements.

Registration costs ₹500-5,000 and takes 7-15 days. Operating without it risks fines of ₹25,000-50,000 plus closure orders. Foreign employers often skip this thinking it doesn't apply. It does.

Provident Fund (PF), ESI, Professional Tax

PF registration is mandatory at 20+ employees. Below 20, it's optional but employees can request it. ESI applies at 10+ employees if anyone earns under ₹21,000/month.

These are government social security schemes with strict deadlines. PF returns due by the 15th monthly. Miss it and pay 12% annual interest plus potential prosecution.

Professional tax registration is required in most states immediately. The amount is small (₹200/month) but non-registration penalties can hit ₹10,000+.

An EOR handles all registrations and filings. With your own entity, you need dedicated payroll management.

Gratuity obligations and long-term liability

Gratuity kicks in after 5 years of service. You owe nothing until then, but once an employee crosses 5 years, you're liable for 15 days of last drawn salary for each year worked.

A developer earning ₹1,00,000/month who works 10 years gets approximately ₹5,00,000 in gratuity at exit ($6,000).

Many foreign employers don't budget for this because nothing is paid during employment. Then year 5 hits and exits become expensive. Factor this into financial planning from day one.

What happens if compliance is missed

Missed deposits trigger automatic interest (12-18% annually). Repeated violations can lead to personal prosecution of the responsible director or HR head.

Unregistered employment means employees can file labor complaints claiming back wages and compensation. Courts generally side with employees when employers can't show proper registration.

For foreign companies, the bigger risk is permanent establishment exposure. If tax authorities determine you're operating without proper structure, your entire India revenue could become taxable.

Compliance is predictable. Companies that follow Indian labor laws don't have problems. Companies that wing it end up with tax notices and legal costs that dwarf proper compliance costs.

To learn more about employment laws in India, refer to our article on Labor Laws in India.

How Payroll, Taxes, and Filings Work in India[toc=Payroll & Taxes]

Running payroll in India involves a structured monthly process with statutory deductions, tax withholdings, and mandatory filings. The system is predictable, but only if executed correctly and on time.

From our experience helping global clients with payroll operations, here’s how payroll actually works in practice:

1. Monthly payroll workflow in India

Payroll runs monthly, typically between the 28th and 5th of the following month.

The workflow: collect attendance and leave data, calculate gross salary, apply TDS (tax withholding), deduct employee PF and ESI, process any reimbursements, generate payslips, transfer to employee bank accounts, and file returns.

Most companies pay by the 7th for the previous month's work. Delays beyond this violate the Payment of Wages Act and trigger employee complaints.

With an EOR, you fund them 3-5 days before payday and they handle everything. With your own entity, you need local accounting software, a bank account, and someone who understands Indian payroll regulations.

2. Tax withholding and statutory filings

Employers deduct income tax (TDS) from salaries monthly based on projected annual income. Deposit it by the 7th, file returns by the 15th. Late deposits trigger 1% monthly interest.

PF deposits are due by the 15th, ESI by the 21st. Miss these and you pay interest plus risk prosecution.

You'll also file quarterly TDS returns and annual statements. That's 40+ filings per year per employee. This is why foreign employers use EORs or outsourced payroll partners.

3. Payslips, Form 16, and employee tax documents

Employees get monthly payslips showing earnings, deductions, and net pay. This is legally required and they need it for loans and visa applications.

By June 15th annually, you must provide Form 16, the annual tax statement showing total earnings and TDS deducted. Employees use this for their own tax returns.

Employees also need their PF passbook updated and salary certificates when requested. For foreign nationals, add employment visa docs and permanent account number requirements.

4. FX handling, invoicing, and payroll accuracy

You pay in USD/EUR, employees receive INR, and exchange rates fluctuate daily.

With an EOR, you send one USD payment monthly. They convert and handle local transfers. You get one invoice, one wire, clean books.

With your own entity, you need an Indian bank account, manage FX conversion (losing 1-2% on markup), and navigate FEMA regulations for international payments.

Payroll corrections are messy. Underpayments can be fixed next cycle. Overpayments require written employee consent to recover. Get it right the first time.

Who is liable for payroll errors

The legal employer is liable for calculation errors, incorrect withholding, or missed deposits. That's your entity or your EOR.

Underpaid employees file labor complaints. Wrong tax withholding means you owe the difference plus interest. Incorrect PF creates months-long reconciliation issues.

With an EOR, they're liable for processing errors. But if you provide wrong data (incorrect salary, wrong classification), that's on you.

Hiring and Onboarding Timelines in India[toc=Hiring & Onboarding]

Many foreign companies underestimate how long it takes to hire and onboard employees in India. While the process is predictable, it involves multiple steps that must be completed before an employee can legally start working.

Here’s a realistic view of timelines and what needs to happen before Day 1.

How long it takes to hire the first employee

  • If you're using an EOR: 2-3 weeks from deciding to hire to employee Day 1. One week for the EOR setup and background checks, one week for candidate offer acceptance and document collection, then onboarding.
  • With your own entity: 4-6 months minimum. Entity registration takes 3-4 months, then PF and ESI registration (2-3 weeks), Shops & Establishments registration (1-2 weeks), then you can start the hiring process.
  • For contractors: 1 week. Service agreement, invoicing setup, and you're done.

The hiring process itself (after you're set up) takes 2-4 weeks. Indian candidates typically have 30-60 day notice periods at their current jobs, so factor that in. If you want someone to start in March, make the offer in January.

For more details, you can read our complete guide on the Best Way to Hire Employees in India.

Documents required from employees

Before Day 1, you need these from every new hire:

  • For identity and compliance: PAN card (permanent account number for tax), Aadhaar card (government ID), passport-size photos, previous employer relieving letter and experience certificates.
  • For payroll: Bank account details with cancelled check or bank statement, PF account number if they have one from previous employment (for transfer), Form 11 (new PF member declaration if first job).
  • For background verification: Address proof (rental agreement, utility bill, Aadhaar), educational certificates, previous salary slips (usually last 3 months).

For foreign nationals working in India, add: employment visa, residence permit, and foreign passport copy.

Most Indian candidates have these ready, but collecting and verifying takes 3-5 business days. Don't promise a start date until you have everything.

Want a plug-and-play process for smoother onboarding in India? Grab our Detailed Onboarding Checklist for Remote Employees with EOR in India.

What Day 1 looks like for an India hire

Day 1 is when the employment agreement gets signed and the employee officially joins your payroll. They'll complete any remaining paperwork, company policy acknowledgments, and laptop/equipment setup if you're providing it.

For remote workers (most global teams), Day 1 is often virtual. They sign digitally, attend orientation calls, get added to systems, and start work.

The legal compliance clock starts on Day 1. Their first month's salary is owed by the 7th of the following month. Their PF account gets created within 15 days. Their first TDS deduction happens based on their salary and tax declarations.

If you miss Day 1 documentation or signatures, you can't legally put them on payroll. Don't let employees start working before paperwork is complete or you create compliance gaps.

When payroll and compliance officially start

Payroll starts the month the employee joins, prorated if they don't work the full month. Join on March 15th, they get 50% of monthly salary on April 7th.

Statutory contributions (PF, ESI, professional tax) start immediately from month one. There's no grace period.

Tax withholding starts based on their projected annual income and the tax regime they choose (old or new). They need to submit Form 12BB and investment declarations within the first month so you can calculate accurate TDS.

First-month compliance includes: generating their employee code, creating PF Universal Account Number if new member, enrolling in ESI if applicable, setting up their monthly payslip template, and adding them to your monthly filing roster.

With an EOR, this happens automatically. With your own entity, someone needs to manage this checklist for every single new hire or you create compliance issues that surface during audits.

Plan for 5-7 business days between offer acceptance and actual Day 1 to get everything processed correctly.

Want payroll done right (and without tax-season migraines)? Dive into our guide on Payroll Compliance in India.

Benefits, Leave, and Holidays in India[toc=Leave & Indian Holidays]

Employee benefits and leave policies directly impact offer acceptance rates in India.

Here's what's mandatory, what's expected, and what you can skip:

Mandatory vs optional employee benefits

Mandatory: PF (covered in section 4), ESI for eligible employees, gratuity after 5 years, earned leave (12-21 days annually), and maternity leave (26 weeks for first two children).

Optional but expected: Health insurance, performance bonuses, and work-from-home allowances. These aren't legally required but competitive offers include them.

Nice to have: Gym memberships, learning budgets, stock options, and meal vouchers. These help with employee satisfaction but won't make or break hiring in India.

Indian employees negotiate hard on CTC, but benefits matter for final acceptance. A lower CTC with good health insurance often beats a higher CTC with no coverage.

Want the full breakdown? Our detailed Employee Benefits in India guide covers it all.

Health insurance expectations in India

Not mandatory by law, but expected by most white-collar workers. Budget ₹15,000-30,000 ($180-360) annually per employee for basic coverage.

Standard coverage: ₹3-5 lakh ($3,600-6,000) for employee, sometimes extended to spouse and kids. Many companies offer ₹5-10 lakh family floater policies.

Without health insurance, you'll lose candidates to competitors who offer it. Indian employees view this as a baseline benefit, not a perk. ESI covers low-wage workers, but professionals earning above ₹21,000/month expect private medical coverage.

Group health policies are cheaper than individual plans. EORs typically include this in their service or offer it as an add-on. With your own entity, you'll negotiate directly with insurance providers.

Leave policies and statutory requirements

  1. Earned Leave: Minimum 12 days annually, but most companies offer 18-21 days. Unused leave can be carried forward or encashed at exit.
  2. Sick Leave: Not mandated federally, but most companies provide 6-12 days. Some states require it under Shops & Establishments.
  3. Casual Leave: Typically 6-10 days for personal emergencies or short breaks. Again, not federally required but industry standard.
  4. Maternity Leave: 26 weeks (6 months) for first two children, 12 weeks for subsequent child. Fully paid. Mandatory.
  5. Paternity Leave: Not mandatory, but progressive companies offer 5-15 days.

Indian employees expect clarity on leave policy before joining. Specify how much, what types, and whether unused leave gets paid out. Vague policies create friction fast.

For a deeper dive into leave entitlements, national holidays, laws, and best practices across India, check out our detailed guide: Understanding Leave Policy Laws and Holidays in India.

National and state holidays explained

India has three national holidays: Republic Day (Jan 26), Independence Day (Aug 15), and Gandhi Jayanti (Oct 2). These apply everywhere.

Beyond that, states declare 7-12 additional public holidays based on local festivals: Diwali, Holi, Eid, Christmas, Pongal (South), Durga Puja (East), and others.

Total public holidays: 10-15 days annually depending on state. Employees also get any state-specific restricted holidays (usually 2-3 optional days they can choose).

Here's what surprises foreign employers: holidays vary by state. An employee in Karnataka gets different days off than someone in Maharashtra. If you have a distributed India team, you can't assume everyone's working the same days.

Most companies declare a common holiday calendar (10-12 days) that covers major festivals across religions. Employees can use casual leave for their personal religious days if not covered.

Calendar planning tip: Diwali and year-end see very low productivity. Budget for this when planning Q4 deliverables with your global team.

Explore our Holiday and Leave Policy Tool to discover state-wise public holidays in India.

Termination in India[toc=Temination in India]

India has some of the strongest employee-protection laws in the world, especially when it comes to termination. You can’t just “at-will” your way out of a bad hire.

Termination is generally permitted in a few clear situations:

  • During the probation period
  • For proven misconduct, such as willful insubordination, theft, or fraud
  • As part of a collective dismissal, subject to legal thresholds and approvals

Outside of these scenarios, workmen are legally entitled to notice or pay in lieu of notice.
For most non-managerial employees, termination without cause requires 1-3 months’ written notice (or full salary for the notice period).

Bottom line: the employment agreement matters a lot. Employers must clearly define termination terms upfront, and still operate within India’s labor laws.

If you're looking to understand the legal process for employee termination, explore our comprehensive guide on "How to Terminate an Employee".

A Practical Checklist for Hiring Employees in India[toc=Hiring Checklist]

Here are the actual checklists that we follow while helping global companies to hire, manage, and exit employees in India without compliance gaps.

Pre-hire compliance checklist

  • Choose hiring model: own entity, EOR, or contractor
  • If own entity: complete Shops & Establishments registration, get PF registration (if 20+ employees), get ESI registration (if 10+ employees and salary criteria met), open local bank account
  • If EOR: sign agreement, verify their licenses and registrations
  • Draft compliant employment agreement with notice period, CTC breakup, job description
  • Set up background verification process
  • Confirm health insurance coverage or plan to offer it

Onboarding and payroll readiness checklist

  • Collect employee documents: PAN card, Aadhaar, bank details, previous PF account number, Form 11 if new PF member, address proof, educational certificates
  • Generate employee code and create payroll profile
  • Create PF Universal Account Number (if new member)
  • Enroll in ESI (if applicable)
  • Get tax declarations (Form 12BB, regime choice)
  • Issue appointment letter and get signed employment contract
  • Set up monthly payslip template
  • Brief employee on statutory deductions, take-home calculation, and leave policy

Ongoing compliance checklist

  • Process monthly payroll by 7th of each month
  • Deposit TDS by 7th, file return by 15th
  • Deposit PF by 15th, ESI by 21st
  • Generate and distribute monthly payslips
  • File quarterly TDS returns
  • Update leave balances and track statutory holidays
  • Maintain employment records (attendance, agreements, warnings, performance reviews)
  • Issue Form 16 by June 15th annually
  • Review contractor relationships for misclassification risk
  • Budget for gratuity liability (employees approaching 5 years)

Exit-readiness checklist

  • Accept resignation or document termination grounds in writing
  • Calculate notice period payment or buyout
  • Process final settlement: last salary, leave encashment, gratuity (if 5+ years), pending reimbursements
  • Settle dues within 30-45 days of last working day
  • Provide Form 16, relieving letter, experience certificate
  • Process PF transfer or withdrawal forms
  • Update PF and ESI records to reflect exit
  • Retrieve company property
  • Conduct exit interview (optional but useful)

These checklists cover 90% of what goes wrong with India employment. Print them, follow them, and you'll avoid the expensive mistakes most foreign companies make.

Hire Employees in India with Wisemonk[toc=Get Started with Wisemonk]

Wisemonk is a specialized Employer of Record (EOR) platform, built for global companies looking to hire, pay, and manage employees in India without the complexities of setting up a local entity. We provide end-to-end workforce solutions tailored to India’s regulatory landscape, ensuring seamless compliance, payroll, and dedicated HR support for your offshore teams.

Why global companies trust Wisemonk for hiring in India:

  • Fast talent acquisition and onboarding: Helping 300+ international companies hire top Indian talent with quick role kickoffs, structured preboarding, and day-one readiness powered by our India-first workflows.
  • Accurate payroll and statutory operations: Managing $20M+ in monthly payroll with error-free TDS, PF, ESI, PT, compliant contracts, and fully automated filings across all Indian states.
  • End-to-end employee lifecycle support: Supporting 2K+ employees with dedicated HR specialists who handle onboarding, offboarding, background checks, equipment procurement, and daily employee needs.
  • Transparent and predictable pricing: Starting at $99 per employee per month with no hidden fees, no FX markups, and clean cost visibility that global teams can trust.
  • Compliance and risk protection: Keeping global teams protected from misclassification, labor disputes, and accidental Permanent Establishment risk through airtight documentation and local labor law expertise.

Wisemonk services is designed to streamline every aspect of hiring and managing employees in India, so you can focus on growing your business while we handle the complexities.

Wisemonk Client review/feedback:

“Wisemonk has helped us hire right people from India for a Canadian entity. The process is so smooth we don't even notice that our payroll has people in both Canada and India.”

- Dinesh A.
Co-founder and CTO
Read the full review on G2 →
“Wisemonk has successfully hired high-quality candidates, which has impressed the client. The team is responsive to the client's requests and changes via Slack. The team also collaborates through a hiring tracker in Google Sheets. Wisemonk communicates via email and virtual meetings.”

- Dan Sampson
VP of Engineering, Cobu
Read the full review on Clutch →

Beyond these core services, Wisemonk also provide advanced support in contractor management, company registration, and work permit & visa assistance and building offshore teams or Global Capability Centers (GCCs) in India for businesses planning long-term India operations.

Ready to build your high-performing team in India? Book a Call Now!

Frequently asked questions

How long does it take to hire employees in India?

The typical hiring timeline in India ranges from 4-8 weeks, including sourcing, interviews, background checks, and notice periods (usually 30-90 days). If you use an Employer of Record, you can hire employees in India in just 2-3 days and skip the 4-6 month entity setup entirely.

What background checks are required when you hire employees in India?

Standard background checks in India include employment history, education credentials, criminal records, and ID verification (PAN, Aadhaar). Under the Digital Personal Data Protection Act (DPDP Act), you must get explicit written consent before conducting these checks, and the process typically takes 7-14 days to complete.

For a complete breakdown of the verification process, read our guide on Background Verification in India.

What are the visa requirements to hire employees in India?

Foreign nationals need an Employment Visa (E Visa) to work in India, which requires sponsorship from an Indian-registered company and a minimum salary of $25,000 annually (with some exceptions). The visa is typically valid for 1-5 years and requires registration with FRRO within 14 days of arrival if staying over 180 days. Without a local entity, companies can partner with an EOR like Wisemonk to sponsor visas and handle the entire work permit process, learn more in our complete India Work Visa and Work Permit Guide.

How to protect intellectual property and enforce NDAs when hiring employees in India?

Under Indian law (following WIPO guidelines), employers automatically own IP created by employees during work, but you must include clear IP ownership clauses in employment contracts to avoid disputes. NDAs are legally enforceable under the Indian Contract Act of 1872 and should prohibit disclosure of confidential information, trade secrets, and proprietary data. When you work with an EOR like Wisemonk, we include robust IP assignment clauses and comprehensive NDAs in all employment contracts, learn more about how we protect IP and confidentiality.

What is the difference between hiring contractors vs employees in India?

Employees work under your direct control with set schedules and company equipment, while contractors work independently on their own terms. Misclassifying employees as contractors leads to penalties up to ₹1 lakh plus backdated benefits like EPF and ESI. Indian law assumes workers are employees unless you prove otherwise, so hire contractors only for specific projects, learn how to classify correctly in our contractor vs employee guide.

Can I convert contractors to employees in India?

Yes, you can convert contractors to employees by ending the contractor agreement and signing a new employment contract with statutory benefits like EPF, ESI, and paid leave. The process requires proper compensation restructuring, payroll system setup, and compliance registrations. Using an EOR reduces conversion time by 70% and handles all registrations, compliance, and payroll setup, learn the complete step-by-step process in our contractor to employee conversion guide.

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