
photo credit: Pavel Danilyuk / Pexels
Key Takeaways
- An Employer of Record (EOR) allows companies to hire employees in India without establishing a local legal entity.
- For businesses with fewer than 50 employees, an EOR is often more cost-effective than setting up an Indian subsidiary.
- Proper EOR arrangements help reduce compliance burdens related to payroll, taxes, labor laws, and benefits administration.
- Founders should understand landed costs, permanent establishment risks, and statutory obligations before hiring in India.
- Planning for future growth and eventual entity formation can help companies scale smoothly as their Indian workforce expands.









