In this article, we will cover all the necessary details that you need to know about the services falling under Employer of Record or EOR India. By choosing an EOR Service, you are transferring all your Payroll, Compliances, Employee Benefits, and HR Administration responsibilities to your EOR Service Provider. You can now have your team in India, that works with you like any other employee, without the need for you to have a local Indian entity.
Growing digitization and ever-increasing interconnectivity across geographies have now made it easier than ever before for businesses to tap into the global talent pool. India, in particular, has emerged as an ideal staffing hub for companies especially when it comes to hiring resources in Technology, Digital Marketing, Accounting, or multiple other back-office Operations. As per a report by Statista in 2023, India has a massive pool of 5.36 million software developers, and the overall employable talent stands at a staggering 50.3%. This has resulted in a steady increase in the number of foreign companies hiring Indian workers.
Table of Contents
- Key considerations while hiring in India
- What is the concept of EOR India?
- What are the Use Cases for Availing of Employer of Records Services (EOR) in India?
- What services are included in EOR?
- How to choose the right Employer of Record in India
- Benefits of working with an EOR India
- Points you must be careful of while selecting the EOR
- Risks or Drawbacks of Employer of Records Services
- How Does Employer of Records (EOR) Services Differ From an Usual HR Software?
- Pros and Cons of Setting Up Employer of Record India Vs. Legal Entity
- Employer of Record (EOR) Vs. Professional Employer Organisation (PEO)
- Employer of Record (EOR) Vs. Global Employment Organisation (GEO)
- Who are the top EOR Service providers in India
- Why Asanify stands out as India’s top EOR Service provider
- How much does it cost to have an EOR in India
- Should Your Organisation Consider Using the Services of Employer of Record India?
- Frequently Asked Questions about EOR in India
Key Considerations While Hiring in India
Hiring in India offers a wealth of opportunities, but it also requires careful considerations to find the right talent. By understanding the local job market, respecting cultural diversity, complying with legal requirements, assessing language proficiency, leveraging local job portals, evaluating technical and soft skills, and prioritizing cultural fit, you can enhance your hiring process and secure top talent for your organization. Remember, investing time and effort in hiring the right candidates will contribute to your business’s long-term success in India’s dynamic and competitive market. Please make note of the points below while hiring in India:
Work Hours and Probation
The standard workweek in India is typically 48 hours, spread over eight to nine hours per day. Overtime work attracts double the normal pay. The probation period for new hires generally spans three to six months.
Indian employees are usually entitled to 12 to 21 annual leave days, depending on the industry and the state of operation. The employment contract should clearly define these leave days. Many employers also offer an additional 10 to 15 days of “casual leave” for unforeseen circumstances.
You may also read our detailed article on New Labour Laws: Effects on the working hours and annual leave of Employees’
Employees who have worked for a company for five years or more are eligible for gratuities. This does not apply if the termination was due to serious negligence or misconduct. The gratuity typically amounts to 15 days’ pay for each year of service.
Female employees who have served for at least 80 days in the preceding 12 months are entitled to maternity leave, ranging from 12 to 26 weeks. The duration depends on the number of children she has. Although not mandatory, many employers voluntarily provide paternity leave as well to their male employees.
Prior to terminating an employee, a notice period of at least one month (or wages for the notice period) must be provided. This rule applies to employees who have served at least a year without misconduct. In the case of redundancy, employees who have served continuously for at least two years are eligible for severance pay.
Suggested Read: Leave Management System- The Ultimate Guide
What is the concept of EOR India?
EOR, or Employer of Records, is a third-party service provider that handles the complex responsibilities of employing a company’s workforce. The EOR officially employs the staff for legal, tax, and insurance purposes, enabling your team to perform tasks for your business without worrying about any local compliances. With this arrangement, you have effectively outsourced the entire human resources administration, payroll, compliances, employee benefits, and employment documentation.
Employer of Record service companies are crucial for organisations looking to expand internationally without necessarily setting up a legal entity. They ensure compliance with local labor laws and regulations when managing remote employees on your behalf. In one word, Employer of Record service providers work as human resources departments for companies.
With EOR services, you can explore India’s rich talent pool without worry. You should be aware of a few key cultural differences and labor laws before hiring Indian employees. With Employer of Records services at your disposal, you can effectively outsource these legal and logistical details.
Check out our detailed article on Salary Benchmarking for some of the top roles in India
What are the Use Cases for Availing of Services Under Employer of Record India?
Employer of Records (EOR) services in India can be a valuable solution for various business scenarios. Of course, the target area where you will need assistance is going to vary, depending upon your objectives and challenges.
You are likely to feel the need for EOR India services whenever you are going to announce your business expansion into an unknown, alien market. Let’s have a look at the most common use cases where Employer of record services may appear as a boon.
1. Business Expansion Without a Legal Entity
If you are planning to expand your venture in an altogether different country, Employer of Records services can help simplify things for you. This is because, establishing a local entity via the lengthy procedures of incorporation and registration can not only exhaust much of your time but can also be costly. Further, gaining in-depth knowledge about the legal regulations of the new country becomes a herculean task. After all, you need to stay compliant.
In tumultuous moments like these, Employer of Records services can take you out from the abyss of darkness. You can use a wide range of EOR services, such as payroll support, compliances, as well as, full-proof guidance and support to meet the employment and immigration guidelines of the new country in which you are expanding your business.
With Employer of Record services handling all the administrative and compliance tasks, your organization can concentrate on its core business activities, including product development, sales, and market strategy. Further, Employer of Record services free up your time and energy that would otherwise be spent navigating the complexities of Indian labor laws and dealing with administrative tasks.
2. Offering Full-time Employment to Contractors or Freelancers
There is no doubt in the fact that freelancers come with their own premium knowledge set in a particular niche. Several global companies find employing freelancers to be profitable. Further, upon witnessing the commendable performance of contractors, some organizations even take the decision to convert them into employees. In that way, employers won’t have to worry about employee misclassification risks. Moreover, they can wield greater control on employees and supervise their work. By converting contractors to freelancers, organizations can also reduce their turnover rates.
Wondering how Employer of Records service providers can aid you in this case? Well, EOR service providers have a deep understanding of Indian labor laws and regulations. When converting freelancers to employees, it’s essential to comply with local employment laws, tax regulations, and other legal requirements. EOR services ensure that the entire process is legally sound.
Employer of Records service providers can also help you draft and manage employment contracts for the newly converted employees. They ensure that these contracts adhere to local labor laws and contain all the necessary employment terms and conditions.
As is obvious, converting freelancers to employees often involves changes in compensation structures, benefits, and tax withholdings. Employer of Records services can handle the transition of payroll and benefits administration, making sure that employees receive their salaries, and benefits are appropriately managed.
3. Recruiting Talent Globally
Ever since the rigidity of geographical boundaries have been blurred, recruiting global talent by promoting remote work culture has become the trend. In a LinkedIn study, 60% of respondents expressed that diversity within their sales team has escalated their team success. Further, studies show that diverse companies can earn 2.5X higher cash flow per employee. No wonder why hiring globally and enhancing diversity of your workforce can work wonders for you!
The downside that comes with a distributed workforce is the difficulty to stay compliant with various regulations. However, you can easily eradicate problems of this sort by using Employer of Record Services. EOR services are well-versed in the local labor laws and regulations, ensuring that the company and its international hires remain compliant with Indian employment laws. Moreover, Employer of Record service companies assist in securing the necessary visas and work permits for international employees, navigating the often intricate immigration process.
EOR services in India play a crucial role in helping companies hire internationally by handling the legal, administrative, and compliance aspects, thus simplifying the process and enabling businesses to focus on their global expansion goals.
Recommended Read: Applicant Tracking System- The Ultimate Guide to Smart Hiring
What Services are Included in EOR India?
Employer of Record (EOR) services provide a comprehensive range of solutions for businesses operating in India. From payroll management and HR administration to compliance support, tax management, and employee benefits administration, EOR services offer a hassle-free and compliant way to expand your workforce in India. By partnering with a reliable EOR provider, businesses can focus on their core operations while enjoying the benefits of having a knowledgeable partner who understands the complexities of the Indian business landscape. Embracing EOR services in India enables businesses to navigate the local employment ecosystem with ease, ensuring a seamless and successful expansion into the vibrant Indian market.
One of the primary services offered by EOR providers in India is comprehensive payroll management. They handle all aspects related to salary processing, tax deductions, statutory compliance, and timely disbursement of employee salaries. With their expertise in local labor laws and taxation regulations, EOR providers ensure accurate and compliant payroll administration, saving businesses valuable time and effort.
EOR services encompass a range of HR administration tasks, including employee onboarding, contract management, and personnel file maintenance. They handle the preparation and issuance of employment contracts, ensuring compliance with Indian labor laws. EOR providers also manage employee benefits, leave tracking, and performance appraisals, streamlining HR processes for businesses operating in India.
Compliance and Legal Support
Navigating the legal and regulatory landscape in India can be complex, especially for businesses unfamiliar with local laws. EOR services in India assist companies in ensuring compliance with labor laws, social security contributions, tax obligations, and other legal requirements. They stay updated on changing regulations, mitigating compliance risks, and providing valuable legal support to businesses.
Taxation and Statutory Compliance
Indian taxation and statutory compliance procedures can be intricate and time-consuming. EOR providers handle tax withholding, filing tax returns, and complying with various statutory obligations such as PF (Provident Fund), ESI (Employee State Insurance), and professional tax. By entrusting these responsibilities to EOR services, businesses can avoid penalties and maintain compliance with Indian tax and labor regulations.
Employee Benefits Administration
Managing employee benefits is a critical aspect of human resource management. EOR services in India oversee the administration of benefits such as health insurance, retirement plans, and other employee welfare schemes. They ensure accurate enrollment, timely premium payments, and seamless coordination with insurance providers, offering employees a comprehensive benefits package.
Risk Management and Insurance
EOR providers also assist businesses in mitigating risks associated with employee liabilities and accidents. They help secure appropriate insurance coverage, such as workers’ compensation and liability insurance, ensuring that businesses are adequately protected. This proactive risk management approach safeguards the interests of both the employer and the employees.
How to Make the Right EOR India?
Selecting the right Employer of Record (EOR) in India is a crucial step in expanding your business and managing your workforce effectively. By considering factors such as expertise, comprehensive service offerings, scalability, technology infrastructure, compliance capabilities, and reputation, you can make an informed decision and choose an EOR partner that aligns with your business goals and values. Partnering with a reliable and experienced EOR provider will ensure compliance with Indian employment regulations, streamline HR processes, and enable a seamless expansion into the vibrant Indian market.
Expertise and Local Knowledge
When evaluating EOR providers in India, prioritize their expertise and local knowledge. Look for providers with a proven track record in the Indian market, deep understanding of local labor laws, and extensive experience in managing employment and compliance matters. A knowledgeable EOR partner will navigate the complexities of the Indian business landscape, ensuring compliance with legal and regulatory requirements.
Comprehensive Service Offerings
Assess the range of services offered by potential EOR providers. Look for providers that offer a comprehensive suite of services, including payroll management, HR administration, compliance support, taxation, employee benefits administration, and risk management. Choosing an EOR partner who can handle multiple aspects of employment management will streamline your operations and reduce the need for multiple service providers.
Scalability and Flexibility
Consider the scalability and flexibility offered by the EOR provider. As your business grows in India, you may need to quickly onboard new employees or expand into different cities or states. Ensure that the EOR partner has the capability to accommodate your growth plans, manage workforce scalability, and adapt to changing business requirements. Flexibility in customizing services to align with your specific needs is also essential.
Technology and Data Security
In today’s digital age, technology plays a significant role in HR and payroll management. Evaluate the EOR provider’s technology infrastructure, including payroll software, data security measures, and data privacy compliance. Ensure that they have robust systems in place to protect sensitive employee information and adhere to international data security standards.
Compliance and Risk Management
Compliance with Indian labor laws and regulations is critical to avoid legal complications. Look for an EOR partner that places a strong emphasis on compliance and risk management. Inquire about their processes for ensuring compliance with labor laws, tax regulations, social security contributions, and other statutory obligations. A proactive approach to risk management and compliance will protect your business and employees.
Reputation and Client References
Research the reputation and credibility of the EOR provider before making a decision. Seek client references and testimonials to gauge the satisfaction levels of their existing clients. Online reviews and industry recognition can also provide valuable insights into the EOR provider’s reliability, professionalism, and service quality.
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Benefits of Working With an Employer of Records Service Provider in India
Working with an Employer of Record (EOR) in India brings a multitude of benefits for businesses expanding into the country’s dynamic market. From ensuring compliance and legal expertise to saving time and costs, leveraging an EOR streamlines your operations and reduces administrative complexities. The availability of local HR support, scalability, and risk mitigation further enhance your business’s success in India. By partnering with a trusted EOR, you can seize the opportunities presented by India’s thriving economy and focus on achieving your strategic goals without worrying about intricate employment regulations
Compliance and Legal Expertise
Indian employment regulations can be intricate and ever-evolving. Working with an EOR in India ensures compliance with local labor laws, taxation regulations, and statutory requirements. EORs have in-depth knowledge of the legal landscape, keeping you informed about changes and mitigating compliance risks. By partnering with an EOR India, you can focus on your core business activities, knowing that your employment practices align with Indian laws.
Time and Cost Efficiency
Establishing a legal entity and managing payroll independently in India requires significant time, effort, and financial resources. By leveraging an EOR, you can bypass the complexities of setting up a local entity and reduce administrative overheads. EORs handle payroll management, tax deductions, and statutory compliance, saving you valuable time and allowing you to allocate resources strategically.
Swift Market Entry
Entering the Indian market swiftly is crucial for businesses seeking to capitalize on its vast opportunities. An EOR enables you to onboard employees quickly, eliminating delays associated with entity setup and legal formalities. By leveraging the EOR’s existing infrastructure and local expertise, you can establish your presence in India without the need for extensive groundwork, enabling faster market entry and accelerated growth.
Local HR Support
Managing HR processes and employee administration can be daunting, particularly in a foreign country. EORs in India provide local HR support, handling tasks such as employee onboarding, contract management, and benefits administration. This ensures smooth HR operations, aligning with local practices, and enhancing employee experience. The EOR’s expertise and knowledge of the Indian market contribute to efficient HR management.
Flexibility and Scalability
India’s dynamic business landscape demands flexibility and scalability. Whether you need to scale your workforce or adapt to changing market conditions, an EOR in India offers the necessary flexibility to meet your requirements. EORs have the infrastructure, resources, and local networks to support your growth plans, enabling seamless scalability as your business expands.
Managing employment-related risks is essential for businesses operating in India. EORs help mitigate risks by ensuring compliance with labor laws, tax regulations, and statutory obligations. They also provide insurance coverage and support for workers’ compensation and liability, safeguarding both the employer and employees. By partnering with an EOR, you can navigate potential risks effectively and focus on your core business objectives.
Establishing a legal entity and setting up operations in a foreign country can incur significant costs. Working with an Indian EOR eliminates these expenses. Foreign companies can leverage EOR expertise and infrastructure instead of investing in infrastructure, legal compliance, HR teams, and payroll systems. This cost-efficient approach allows businesses to allocate their resources strategically and focus on growth initiatives.
Mitigating cultural and language barriers
When operating in a new market, foreign companies often encounter cultural and language barriers. EOR understands the local culture, acting as a liaison between foreign companies and their Indian employees. In turn, this promotes effective communication, cultural integration, and a harmonious working environment.
Focus on core business activities
Payroll administration can be a time-consuming task. Businesses can focus on their core competencies by outsourcing this function. Companies can devote their efforts to strategic initiatives like growth and innovation. Instead of being bogged down in administrative tasks, they should improve their offerings.
Also, check out: Top 10 Payroll Software for Accountants in 2023!
Points You Must Be Careful of While Selecting the Best EOR India
Selecting the right Employer of Record (EOR) in India requires careful consideration of various factors. Ensure the EOR possesses expertise in Indian employment regulations, offers comprehensive services, and has a positive reputation. Prioritize data security and privacy compliance, and review pricing structures and contractual agreements thoroughly. Consider the EOR’s local network and support capabilities to ensure a smooth and successful partnership. By exercising caution and conducting thorough due diligence, you can select an EOR that aligns with your business needs and helps you navigate the complexities of the Indian employment landscape with confidence.
Expertise in Indian Employment Regulations
Verify that the EOR has extensive knowledge and expertise in Indian employment regulations. Look for a provider with a proven track record in navigating the complexities of Indian labor laws, tax regulations, and statutory compliance. An EOR with a deep understanding of local regulations will help you avoid legal complications and ensure your business remains compliant.
Service Offerings and Scalability
Evaluate the range of services offered by the EOR and assess whether they align with your business needs. Ensure the EOR provides comprehensive services such as payroll management, HR administration, compliance support, taxation, and employee benefits administration. Additionally, consider the EOR’s scalability, as your business may require flexibility in workforce management and the ability to expand rapidly.
Reputation and Client References
Conduct thorough research on the EOR’s reputation and credibility. Look for client references, testimonials, and case studies to gain insights into their client satisfaction levels. Online reviews and industry recognition can also provide valuable information about the EOR’s reliability, professionalism, and service quality. Choose an EOR with a solid reputation and positive feedback from clients.
Data Security and Privacy Compliance
Data security is of utmost importance when working with an EOR. Ensure the EOR has robust systems and processes in place to safeguard sensitive employee information. Inquire about their data security measures, encryption protocols, and compliance with data privacy regulations such as the General Data Protection Regulation (GDPR). Protecting your employees’ data should be a top priority for the EOR.
Transparent Pricing and Contractual Agreements
Thoroughly review the pricing structure and contractual agreements of the EOR. Ensure there are no hidden costs or ambiguities in the terms and conditions. Transparent pricing allows you to budget accurately and avoid any financial surprises. Additionally, pay attention to contract terms, including termination clauses, service level agreements, and notice periods, to ensure they align with your requirements.
Local Network and Support
Consider the EOR’s local network and support capabilities. They should have established connections with local authorities, legal experts, and other necessary stakeholders. A strong local network enables the EOR to provide prompt support and guidance on matters related to compliance, labor disputes, and legal issues. Partnering with an EOR with robust local support can significantly benefit your business operations in India.
Suggested Read: Types of Leaves in India
Risks or Drawbacks of EOR India
As much as Employee of Record (EOR) services offer several benefits for businesses looking to expand or operate in India, there are also risks and drawbacks associated with using these services. Here are some of the key risks and drawbacks of EOR services in India:
1. Limited Control
When you use EOR services, you may have limited control over the hiring, management, and termination of employees. This can impact your ability to build a specific company culture or maintain a consistent workforce.
2. Potential Cultural Differences
EOR services may not fully understand your company’s culture and values, which can lead to a disconnect between your employees and the EOR provider’s management style.
EOR services come at a cost, which may be higher than hiring employees directly. It can include service fees, administrative costs, and potentially hidden expenses.
4. Data Security and Confidentiality
Sharing employee data and sensitive company information with a third-party EOR provider can pose risks to data security and confidentiality. Ensure the EOR has robust security measures in place.
5. Scalability Challenges
Adapting to changing workforce needs and scaling up or down can be more challenging with EOR services, as they may not provide the same flexibility as hiring directly.
6. Communication Challenges
Dealing with a third-party intermediary can introduce communication challenges, potentially leading to misunderstandings or delays in decision-making.
It’s crucial to carefully assess the specific EOR provider, understand the terms of the service agreement, and consider these risks and drawbacks before deciding to use EOR services in India. Additionally, seeking legal counsel and consulting with experts in Indian labor laws can help mitigate some of these risks and ensure compliance with local regulations.
How Does Employer of Record India (EOR) Services Differ From an Usual HR Software?
An Employer of Record (EOR) and traditional HR software serve different purposes and have distinct functions. Let’s see how both of these differ from one another so that you get to avoid any kind of confusion while availing of EOR services:
1. Employer of Record (EOR)
a) Employment Relationship: An EOR is a third-party organization that establishes a legal employment relationship with the workers. They become the official employer of record for these employees, handling all related responsibilities, such as payroll, taxes, benefits, and compliance with labor laws.
b) Global Workforce: EORs are often used by companies with a global workforce, as they can navigate the complexities of international employment laws and regulations.
c) Compliance: EORs ensure that all employment-related matters are compliant with local laws, which can vary significantly from one country or region to another.
d) Risk Mitigation: EORs assume a significant portion of the legal and financial risks associated with employment, protecting the client company from potential liabilities.
2. HR Software
a) Management Tools: HR software typically provides tools to manage various aspects of human resources, including recruitment, onboarding, time and attendance, performance reviews, and employee records.
b) Employee Self-Service: Many HR software solutions offer self-service portals for employees to access information, request time off, and manage their personal data.
c) Data and Reporting: HR software can generate reports and analyze HR-related data, helping organizations make informed decisions.
d) Integration: It can integrate with other systems like payroll, benefits administration, and accounting software to streamline HR processes.
To sum up, the key difference is that an Employer of Record takes on the role of the legal employer and handles all employment-related responsibilities, while HR software provides tools for managing various HR functions within a company. EORs are typically used when a company needs to manage a global workforce and wants to offload the complexities of compliance and legal responsibilities, whereas HR software is more about enhancing the efficiency of HR operations within a specific organization.
Pros and Cons of Setting Up EOR India Vs. Legal Entity
Setting up an Employer of Record (EOR) or a Legal Entity (LE) for your business comes with its own set of advantages and disadvantages. The choice between the two depends on various factors, including your business goals, budget, and regulatory considerations. Here are some pros and cons for each option:
Employer of Record (EOR)
1. Simplified HR and Payroll: EOR providers handle HR, payroll, and compliance, reducing administrative burden.
2. Faster Market Entry: EOR allows quicker market entry, as you can hire employees without establishing a legal entity.
3. Lower Administrative Overhead: No need to manage legal entity complexities, making it cost-effective.
4. Flexibility: EOR can be used for short-term or project-based hires.
1. Limited Control: You have less control over HR and employment matters as the EOR manages most of these aspects.
2. Possible Limited Benefits: Employee benefits might not be as customizable as with an LE.
Legal Entity (LE)
1. Full Control: You have complete control over HR, payroll, and benefits, allowing for customization.
2. Long-term Cost Efficiency: Over time, managing an LE may be more cost-effective only if you have a significant local workforce.
1. Higher Initial Costs: Setting up an LE involves legal and administrative costs.
2. Complex Compliance: You are responsible for adhering to all local labor laws and regulations, which can be complex and time-consuming.
3. Slower Entry: Establishing an LE takes time and effort, delaying your entry into the local market.
To reiterate in a crisp summary, choosing between EOR and LE depends on factors like your business goals, budget, and the level of control and customization you need. Employer of Record India can be a quicker and more cost-effective option for short-term or flexible hiring needs, while establishing an LE provides more control and may be more cost-efficient in the long run for a larger and more permanent local presence. It’s essential to carefully evaluate your specific circumstances and consult with legal and HR experts to make the right decision for your business.
Employer of Record (EOR) Vs. Professional Employer Organisation (PEO)
Both EOR and PEO help companies shed the extra weight off their shoulders. However, there are key differences between the two. This will help you make a conscious and informed choice.
Employer of Records (EOR)
Professional Employee Organisations (PEO)
|Core Function||Employer of Records involves outsourcing only a part of HR work, and not the entirety of it.||Professional Employer Organisation or PEO takes charge of all the functions of the HR department. These include taking care of employee onboarding, taxes, terminations, taxes, etc.|
|No. of Employees||There is no such condition that a certain number of employees needs to be present to avail EOR services. Further, it can also be used to cater to the needs of contractors in your organisation.||There must be a minimum number of employees, say, 5 to 10, for PEO services to be used.|
|Insurance Coverage||Employer of Records services include covering workers’ compensation. Further, it ensures that employees, whose payroll it is handling, are insulated from risks or potential damages.||Using PEOs entails providing your own insurance.|
|Business Registration||EOR doesn’t require companies to have a local entity or go through the hassle of registration and other complex regulatory processes.||PEO won’t offer you this benefit. Therefore, it is mandatory to establish your legal identity by yourself, and this is something not only difficult but time-consuming.|
Employer of Record (EOR) Vs. Global Employment Organisation (GEO)
Well, in this case, the differences are not that pronounced because these are slightly different entities themselves. Basically, GEO refers to the global structure using Employer of Records services in respective countries of employment. GEO plays the governing or supervising part and ensures whether the EOR undertakes all the tasks on time and adhere to the regulations. Do note that EOR is not involved in procuring talent for your organisation. Coming to GEO, it undertakes the task of delving deep into overseeing the local talent of each new country in which you wish your venture to expand.
Who are the Top EOR Service Providers in India?
Asanify: Offers the most comprehensive EOR Service that is most flexible in both operation and control. To manage your employees, you get a fully automated HR and Payroll solution, and also all your employee information is available at your fingertips. With our deep understanding of Indian labor laws and compliance requirements, Asanify ensures seamless HR administration and adherence to all statutory compliances. Their scalable solutions and commitment to client success have earned them a strong reputation in the market.
Horizons: They have been operating and providing EOR services in India since 2017. New businesses can gain a foothold in the Indian market without setting up legal entities.
InsourceIndia: Provide Employer of Record (EOR) services in India and helps employers from all over the world set up hassle-free businesses in India.
Skuad: While working with Skuad as an India PEO partner, organizations have more control over the decision-making processes. Skuad’s EOR solutions don’t require organizations to form an entity in the country of expansion.
These EOR service providers offer expertise in navigating the Indian regulatory environment. The EORs can assist foreign companies in expanding their operations seamlessly. It’s important to carefully evaluate and choose the right EOR provider that aligns with your specific business needs and goals.
Why Asanify stands out as top EOR India Service provider?
Asanify is a fully automated and 100% compliant Payroll and HR Management Solution that offers EOR services in India. It aims to simplify the process of managing employees and ensuring statutory compliance for businesses operating in India. It has even been independently judged by RemotePad.com as one of India’s standout EORs. Here is a comprehensive review of Asanify and an explanation of its standout features as an EOR service provider.
Hassle-free Employee Management
Asanify enables businesses to easily manage their employees in India. The platform automates the onboarding process, ensuring a seamless and quick process for expanding businesses.
Payroll and Statutory Compliance
Employer of Record payroll services is perhaps the most sought-after in the market. The organization takes care of payroll processing and ensures adherence to all statutory compliances in India. There is no need to worry about payroll calculations, tax deductions, provident funds, ESIC contributions, or income tax filings. Asanify handles these tasks accurately and timely, providing a hassle-free experience for employers and employees alike.
Best-in-Class FX Rates
With Asanify, businesses can transfer money from their currency to their employees using best-in-class currency exchange rates. This feature ensures cost-efficiency and transparency in cross-border financial transactions.
The organization provides a comprehensive HRMS (Human Resource Management System) to track employee productivity. There are features such as attendance tracking, time-off management, expense tracking, goal setting, and performance management. This integrated system maximizes team productivity by streamlining various HR processes.
Speed and Efficiency of EOR India
Asanify stands out for its ability to get businesses up and running within one day, thanks to its automated onboarding process and prompt support. This rapid turnaround time ensures minimal disruption to operations during the expansion phase.
Asanify offers round-the-clock support to assist businesses and employees with any queries or issues related to payroll, taxes, or HR management. This commitment to providing hands-on support ensures that clients receive timely assistance and a smooth experience throughout their engagement with Asanify.
Recommended Read: How to Hire in India Easily- 10 Key Considerations
How much does it cost to avail Services Under EOR India?
The cost of having an Employer of Record (EOR) in India depends on various factors, including the scope of services, employee strength, the complexity of employment regulations, customization needs, technology infrastructure, and pricing models. By assessing these factors and understanding the associated costs, businesses can make informed decisions when selecting an EOR. It is crucial to balance the cost with the quality of services, compliance expertise, and the value the EOR brings to your business. Partnering with a reputable EOR will ensure seamless workforce management, compliance, and operational efficiency in the Indian market.
Scope of Services
The cost of EOR services in India is influenced by the scope of services provided. EORs typically offer a range of solutions, including payroll management, HR administration, compliance support, and benefits administration. The more comprehensive the services required, the higher the associated costs. It is essential to assess your specific business needs and determine which services are essential to ensure a seamless employment experience.
The number of employees being managed by the EOR also affects the cost. EORs often have tiered pricing structures based on the size of the workforce. As the number of employees increases, the cost may vary accordingly. It is advisable to inquire about pricing tiers and determine if there are any cost advantages based on employee headcount.
Complexity of Employment Regulations
India’s employment regulations can be complex and dynamic. The intricacies of compliance can impact the cost of EOR services. EORs with extensive expertise in navigating local labor laws and statutory requirements may charge a premium for their specialized knowledge. While this expertise ensures compliance and mitigates risks, it can impact the overall cost of EOR services.
Customization and Additional Services
Customization of services and additional requirements may incur additional costs. Businesses with unique needs or specific industry requirements may require tailored solutions from the EOR. These customized services or add-ons, such as specialized reporting, employee training, or specific HR support, may come with an extra cost. It is important to discuss your specific requirements with the EOR and understand any associated costs for customization or additional services.
The technology infrastructure provided by the EOR can also influence the overall cost. Advanced payroll systems, employee portals, and data security measures are important considerations. EORs with robust technology platforms may charge higher fees due to the investment required to maintain secure systems and provide efficient services. Assess the technology infrastructure offered by the EOR and evaluate its alignment with your business needs.
Pricing Models and Contract Terms
Employer of Record service companies may adopt different pricing models, such as a monthly retainer, per-employee fees, or a combination of both. The pricing model and contract terms should be carefully reviewed to understand the cost structure and any potential hidden fees. Transparent pricing and clear contractual agreements will help you budget accurately and avoid any surprises.
Should Your Organisation Consider Using the Services of EOR India?
If you are finding yourself lost in the maze of confusions as to whether you should go for Employer of Record service companies, take into account these questions to eke a way out:
- Are there chances of international expansion of business? Or, do you plan to explore new foreign markets?
- Is your worker classification sorted?
- In which markets are you planning to recruit employees?
- How do you plan to manage your organisation’s distributive workforce?
- To what extent are you willing to give up control when things come to managing your employees and various other essential admin processes?
- In which markets are you planning to hire employees?
Consider these questions to assess whether you need the services of Employer of Record India to hire employees, manage global workforce, and stay compliant. In short, using Employer of Record payroll services and other functions will aid you in saving your precious time. This is because you won’t have to worry about delving deep into the diverse legal framework established in respective countries all over the world. Further, you can manage your global workforce without facing any hassle. It is easy to see that EOR is soon going to emerge as your best buddy in business!
Conclusion: EOR India
Employer of Record (EOR) services are a valuable solution for companies looking to expand their operations and leverage in India. Working with suitable EOR can help you to take your business to the next level. Companies can manage workflow and employees without wasting money and time. By taking advantage of these benefits, companies can navigate the Indian market effectively and efficiently. However, to maximize the benefits, you must choose a suitable EOR like Asanify.
FAQs- EOR India
What is an EOR service in India or EOR India?
An EOR service in India refers to a professional entity that takes on the role of the employer for your workforce, handling payroll management, HR administration, compliance, and legal obligations on your behalf.
Why would a business need EOR services in India?
Businesses often choose EOR services in India to simplify their expansion into the country, as EORs ensure compliance with local employment regulations, mitigate risks, and provide efficient HR and payroll support.
How does an EOR service in India work?
An EOR service in India acts as the legal employer of record for your employees. They manage payroll, handle employment contracts, administer benefits, ensure compliance with local laws, and address HR-related matters.
What are the benefits of using EOR services in India?
The benefits of using EOR services in India include streamlined HR processes, compliance with local labor laws, cost and time savings, access to local expertise, scalability, and risk mitigation.
Can EOR India services help with onboarding employees?
Yes, EOR services in India assist with onboarding employees by managing employment contracts, coordinating background checks, providing employee handbooks, and handling orientation processes.
Do I still maintain control over my employees with EOR services in India?
Yes, you maintain control over the day-to-day tasks, job assignments, and performance management of your employees. The EOR service primarily handles administrative and legal responsibilities.
How do EOR services in India handle payroll?
EOR services in India handle payroll by calculating salaries, withholding taxes, making statutory deductions, generating payslips, and ensuring timely and accurate salary payments to employees.
Do EOR services in India provide benefits to employees?
Yes, EOR services in India can provide benefits to employees based on your agreed-upon benefits package. This may include health insurance, retirement plans, leaves, and other employee benefits.
Can EOR services in India handle termination and severance processes?
Yes, EOR services in India can manage termination and severance processes in accordance with local labor laws, ensuring compliance and providing guidance on legal requirements and employee entitlements.
How long does it take to set up EOR services in India?
The timeline for setting up EOR services in India can vary depending on various factors such as the complexity of the business structure, number of employees, and the specific requirements of the EOR service provider. Typically, it can take a few weeks to establish the partnership and initiate operations.
Can EOR India services assist with work permits and visas?
Yes, EOR services in India can assist with work permits and visas by providing guidance on the necessary documentation and liaising with relevant authorities to ensure compliance with immigration regulations.
Do EOR services in India handle tax compliance for businesses?
Yes, EOR services in India handle tax compliance by ensuring accurate tax calculations, making timely tax payments, filing tax returns, and providing necessary tax-related documentation for employees.
Can EOR services in India support businesses in multiple cities or states?
Yes, EOR services in India can support businesses operating in multiple cities or states by leveraging their network and expertise in different regions, ensuring compliance with local laws and regulations.
Is it possible to transition from an EOR service to setting up a legal entity in India?
Yes, it is possible to transition from an EOR service to setting up a legal entity in India if your business requires a more permanent presence. EOR services can often provide guidance and support during the transition process.
How much do EOR services in India cost?
The cost of EOR services in India can vary depending on factors such as the number of employees, the scope of services required, customization needs, and the service provider’s pricing structure. It is best to consult with EOR service providers to get accurate cost estimates tailored to your business requirements.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.