Why would a company use an Employer of Record in India?
An Employer of Record in India allows a foreign company to hire employees legally in India without creating its own local entity. The EOR becomes the legal employer for payroll, taxes, and compliance, while your company manages work, performance, and day to day operations.
Based on our experience supporting US startups, public companies, and mid-market SaaS teams, the most consistent reason companies choose an EOR is the ability to hire top Indian talent quickly while staying fully compliant with Indian labor laws.
Fast hiring without opening an Indian entity[toc=Fast Hiring]
Based on our extensive work with US companies expanding into India, entity setup is the biggest delay when teams want to hire quickly.
Creating a legal entity in India takes three to six months and requires ongoing accounting, audits, tax filings, and administrative overhead. An EOR shortcuts this entire process. You can hire employees in days because the EOR already has the legal infrastructure to employ on your behalf.
Companies use this route when they need:
• Immediate hiring
• Zero administrative friction
• A compliant presence in India without incorporation
Full compliance with Indian payroll, tax, and labor law[toc=Compliance]
From our compliance audits, the highest mistakes occur in PF, ESI, TDS, and state level labor filings. An EOR removes this risk entirely.
The EOR handles all employer responsibilities in India, including:
• Payroll processing
• PF contributions which work similarly to US Social Security
• ESI enrollment
• TDS withholding which parallels federal income tax withholding
• Professional Tax filings based on each Indian state
• Employment contracts aligned with Indian labor laws
• Gratuity eligibility and benefits administration
For US companies with no Indian HR or legal team, this reduces risk significantly and ensures all employees are fully compliant with Indian statutory requirements.
Protection from Permanent Establishment risk[toc=Protection from PE Risks]
We often observe that US founders underestimate the tax exposure created when hiring employees directly without an entity.
Hiring employees directly in India without a local structure can trigger Permanent Establishment under Indian tax law. This exposes your company to corporate tax liability in India.
An Employer of Record becomes the legal employer in India, which protects you from PE risk while still allowing your team to work directly with Indian employees.
Lower cost and operational lift compared to a subsidiary[toc=Lower Costs]
Our analysis consistently shows that maintaining an India entity requires ongoing legal, accounting, HR, and compliance resources that most early stage teams do not want.
A subsidiary requires:
• Board formation
• Registered office
• Annual filings
• Indian statutory audits
• Banking setup
• Local directors
• HR processes across states
An EOR eliminates all entity maintenance costs and effort. You only pay per employee, and the EOR handles all employer obligations.
Here is what one global company shared about operational reliability:
“Wisemonk is a key partner for EOM-Energy O&M Services, playing an essential role in supporting our operations. Their seamless payment solutions make transactions not only simple and fast but also reliable. The team’s responsiveness, professionalism, and proactive approach give us complete confidence in every interaction. We look forward to strengthening our collaboration, using Wisemonk both for Employer of Record services and for recruitment support, to help us expand our team in India in the short and medium term.”
– José Enrique Montero Pérez, CEO at EOM-Energy O&M Services
Access to India’s engineering, GTM, and tech talent[toc=Talent Access]
Based on our hiring data, India continues to be one of the world’s deepest pools for engineering, product, marketing, and GTM talent.
An EOR enables companies to hire:
• Software engineers
• Product managers
• Data analysts
• Sales development reps
• Digital marketers
• Customer success roles
Because the EOR manages contracts and payroll, you can scale teams without HR overhead.
“The Wisemonk team played a key role in helping us hire for specialized B2B SaaS marketing skills. We were able to build the team within four months, and hire experienced professionals from Tier 1 and major B2B SaaS brands. This includes SEO, digital marketing, business development, product marketing, content marketing, and GTM roles. They are a great partner providing integrated services for EOR and recruitment and I’d recommend them to any B2B SaaS vendor.”
– Saurabh Sharma, Chief Marketing Officer at Onereach
Local HR support, employee management, and benefits administration[toc=HR Support & Benefits]
We often see US teams struggle with Indian benefits administration, especially PF, ESI, health insurance, gratuity, and mandated leave structures.
An EOR manages ongoing HR support:
• Leave administration
• Performance documentation
• Standardized onboarding
• Health insurance benefits
• State rule changes
• Offboarding and full and final settlements
Employees receive consistent support and compliance aligned with Indian labor laws.
Here is feedback from a People Leader who managed India teams through Wisemonk:
“Working with the Wisemonk team in India has been a genuinely positive experience from day one. They've been consistently accessible and are building fantastic relationships with our local team. As someone based in the UK, I value the quality of compliance Wisemonk brings. I have full confidence when it comes to financial, legal, and HR matters. They've ensured our team is managed in line with local employment law and have also been flexible when we've wanted to go beyond statutory requirements. Whether it's increasing annual leave or tailoring health insurance, they've offered clear guidance to help us enhance the benefits we provide. It's been a great partnership.”
– Lisa Jones, Chief People Officer at Couch Health
To learn more about the benefits of using an Employer of Record in India, Refer to this detailed guide on “Benefits of Employer of Record in India: Legal & Compliance”
Why Wisemonk is used by US companies for EOR services in India?[toc=How Wisemonk Helps]
Wisemonk is an India-specialist Employer of Record trusted by 500+ global companies to hire, pay, and manage talent in India. We help teams hire in two to four days with full compliance, transparent pricing, and dedicated local HR support. Our clients consistently highlight accuracy, speed, and talent quality.
“I'm very happy that I discovered Wisemonk. They have been a pure pleasure to work with, and their attention to detail is impressive. They helped us understand their pricing model, find top-qualified individuals, interview them, and then onboard them. The individuals they were able to find have been some of the best engineers I have ever worked with.”
– Dan Sampson, Head of Engineering at Cobu
If your company wants to hire in India without opening a subsidiary, an EOR like Wisemonk removes legal complexity, reduces risk, and gives you immediate access to India’s talent market. Contact us today!