FAQ: Eor India

An Employer of Record legally employs staff in India on your behalf, without you needing your own registered entity; a subsidiary is your own legal entity that employs staff directly. EOR trades some cost efficiency and long-term flexibility for speed and zero entity-setup burden.  Read full answer →

EOR itself is a legitimate, widely-used structure in India when set up correctly — the compliance risk arises specifically when the day-to-day control an EOR's client exercises over an employee starts to look like a direct employer relationship, which can create misclassification or permanent establishment exposure.  Read full answer →

The switch typically pays off once headcount and per-employee EOR fees grow large enough that a subsidiary's fixed compliance cost becomes cheaper on a per-head basis — commonly somewhere in the 10-20+ employee range, though the right trigger is really commitment and control needs, not headcount alone.  Read full answer →

An EOR is responsible for Provident Fund (PF), Employee State Insurance (ESI) where applicable, gratuity accrual, professional tax, and statutory leave entitlements — the same compliance a subsidiary would owe as a direct employer, just administered under the EOR's registrations instead of yours.  Read full answer →

Hiring through an EOR typically takes 1-2 weeks from offer acceptance to the employee's first day, since there's no entity to incorporate — the main variables are background verification turnaround and how quickly employment terms and compensation structure are finalised.  Read full answer →