Hiring through an Employer of Record in India is dramatically faster and far easier than creating your own local entity. An EOR already has a legal presence in India, so you can hire in days, while forming a subsidiary involves months of legal paperwork, government approvals, banking setup, and ongoing compliance. From our experience guiding US companies entering India, the biggest difference is the administrative load: EOR hiring removes nearly all of it.
Hiring through an EOR in India[toc=Employer of Record]
Hiring through an EOR is the fastest path because the provider already has the legal, compliance, and payroll infrastructure in place, allowing you to move straight to onboarding instead of building everything from scratch.
- Speed: Hiring can be completed within a few days because the EOR already operates a fully compliant Indian legal entity. You can issue an offer immediately, and onboarding begins as soon as the candidate submits their documents.
- Effort: The EOR handles all employment contracts, payroll setup, statutory registrations, benefits enrollment, and tax compliance. Your only responsibility is selecting the candidate and managing their day-to-day work.
- Cost: Upfront costs are extremely low. You simply pay a predictable monthly fee per employee, without spending on incorporation, audits, legal counsel, payroll tools, or Indian tax advisors.
- Risk: The EOR assumes responsibility for payroll tax accuracy, statutory filings, PF/ESI compliance, and labor-law obligations. This shields your company from penalties, misclassification risks, and regulatory oversight.
- Best suited for: US companies testing the India market, building small to midsize teams, or needing to hire quickly without committing to entity setup.
Based on our experience supporting large India expansions for US SaaS and engineering teams, an EOR is always the fastest and least risky path for early-stage or first-time hiring.
Setting up your own entity in India[toc=Own Entity]
Setting up your own Indian entity takes far more time and effort since you need to create the entire legal and operational foundation yourself before you can hire anyone.
- Speed: Forming a private limited company in India typically takes three to six months or more. This includes director appointments, incorporation filings with the Ministry of Corporate Affairs, obtaining tax IDs, opening a bank account, and completing state-level registrations.
- Effort: You become responsible for maintaining a compliant Indian operation. This requires legal drafting, monthly payroll filings, PF/ESI deposits, quarterly tax filings, maintaining statutory registers, managing audits, and responding to any labor or tax notices.
- Cost: Upfront costs are significantly higher. Expect legal fees, company registration charges, HR system setup, accountant retainers, and ongoing compliance costs. These expenses continue monthly regardless of team size.
- Control: You gain complete control over HR policies, contracts, benefits, and brand presence. This flexibility matters for companies planning long-term or large-scale operations.
- Risk: All compliance and tax responsibility sits with you. Any incorrect filings, late PF deposits, or labor-law missteps can lead to penalties or legal exposure.
- Best suited for: Companies building a large, permanent workforce, establishing an R&D center, or generating revenue directly from India.
Read more: Employer of Record vs Own Entity: What to Choose in 2025
Why companies choose Wisemonk for faster, low-effort India hiring?[toc=How Wisemonk Helps]
Wisemonk is an India-specialist EOR that helps US companies hire in days without setting up a local entity. We manage payroll, taxes, PF/ESI, compliance, contracts, and onboarding end-to-end. Our clients consistently highlight speed, accuracy, and deep India expertise.
Client Review:
“Wisemonk helped us hire our first founding engineers in record time. We accelerated our roadmap thanks to their support.”
- Krishna Ramachandran, Co-founder at Onform
Need help with your global expansion in India? Contact our team to learn how we can support your global operations.