To hire and onboard talent in India through an Employer of Record, you first partner with an EOR that becomes the legal employer and handles all compliance work. Once engaged, the EOR prepares a compliant employment contract, collects employee documentation, registers the hire for statutory programs like PF and ESI, sets up payroll and benefits, and manages onboarding tasks. After the employee starts, the EOR continues handling payroll, tax, compliance, and HR administration in the background.
Below is the simplified, clear, step-by-step process:
Step 1: Choose your EOR partner and finalize agreements
Before onboarding begins, you need to establish the partnership. This starts with selecting an EOR that already operates a compliant Indian entity and understands local labor laws. Once selected, both parties finalize the agreements that define scope, responsibilities, and pricing.
This step usually includes:
• Signing the Master Service Agreement (MSA)
• Finalizing the Scope of Work (SOW)
• Confirming pricing, timelines, and compliance responsibilities
Step 2: Source and select the candidate
You own the hiring decision; the EOR owns the legal framework. Your team continues sourcing, interviewing, and choosing the candidate. If needed, the EOR can support with India-specific recruitment insights.
This stage includes:
• Sharing job details, compensation, and start date
• Introducing the chosen candidate to the EOR
• Ensuring the role fits Indian labor and statutory requirements
Step 3: Draft the India-compliant employment contract
Once the candidate is selected, the EOR drafts a localized, legally compliant employment contract. Based on our experience supporting US companies, this step is often critical because Indian employment structures differ significantly from US or EU norms.
A compliant contract typically includes:
• Salary structure and statutory components
• PF, ESI, and benefits eligibility
• Leave rules and working hours
• Notice periods and termination clauses
• Intellectual property, confidentiality, and data protection clauses
Step 4: Collect employee documentation
Onboarding formally begins with documentation. The EOR collects all personal and statutory information required to employ someone legally in India.
Documentation includes:
• PAN and Aadhaar
• Bank details
• Address verification
• Prior employment information
• Tax declarations
For foreign nationals: visa assistance and FRRO registrations are also managed.
Step 5: Register the employee for mandatory statutory programs
India requires employees to be enrolled in specific social security schemes. A compliant EOR completes these registrations immediately after contract acceptance.
Registrations include:
• Provident Fund (EPF)
• Employees’ State Insurance (ESI), if eligible
• State Professional Tax
• Shops & Establishments compliance
• Gratuity eligibility setup
Step 6: Set up payroll, benefits, and IT access
At this stage, the operational onboarding begins. The EOR configures payroll, schedules salary processing, and activates statutory deductions, while your team handles tools, access, and work setup.
This step covers:
• Payroll setup in INR with correct TDS calculations
• Enrollment in statutory and supplemental benefits
• Equipment procurement, if supported
• Portal and system access
• Policy orientation and guidelines
Step 7: Employee officially starts
Once setup is complete, the employee starts working as part of your team, while remaining legally employed by the EOR.
During this step:
• You manage work, tasks, and performance
• The EOR manages payroll, tax deposits, benefits, and compliance
• All statutory filings and HR administration run in the background
Step 8: Ongoing payroll, compliance, and HR support
A strong EOR continues supporting you long after onboarding. This includes payroll management, statutory filings, leave administration, and policy updates. Based on our experience supporting global teams, this ongoing support eliminates compliance errors and saves the most time.
Ongoing responsibilities include:
• Monthly payroll processing and TDS filings
• PF, ESI, and Professional Tax submissions
• Maintaining statutory registers
• Handling leave and HR queries
• Updating policies as labor laws change
Why companies trust Wisemonk for hiring and onboarding in India?
Wisemonk is a specialist EOR that helps global companies hire in India without the complexity of running a subsidiary. We handle compliant contracts, payroll, taxes, statutory filings, benefits, and onboarding so your team can focus on performance and growth.
A People Leader highlighted the experience:
“Working with the Wisemonk team in India has been a genuinely positive experience from day one… I value the quality of compliance Wisemonk brings.”
- Lisa Jones, Chief People Officer at Couch Health
Need help with your global expansion in India? Contact our team to learn how we can support your global operations.