EOR, or Employee of Record, is a strategic HR solution that allows companies to legally and efficiently hire employees in a foreign country without setting up a local entity. An EOR service provider in India becomes the legal employer of your workforce while you maintain full control over the employee’s day-to-day activities and deliverables.
This means the EOR handles all employment-related tasks—such as payroll management, employee benefits, compliance with labor laws, tax deductions, and reporting—freeing up your business to focus solely on performance and expansion.
Whether you’re a multinational entering the Indian market or a growing startup hiring remote talent from India, EOR services help you achieve speed, scale, and compliance effortlessly.
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Choosing the right EOR service provider in India opens up a wide array of benefits:
Setting up a legal entity in India can take months and significant capital investment. With EOR services, you can bypass this step and start hiring immediately.
Hiring through an Employee of Record allows companies to onboard talent quickly—often within days. You save time on legal formalities, tax registrations, and administrative setup.
India has complex labor laws that vary by state. A local EOR service provider ensures full compliance with statutory requirements, minimizing the risk of penalties and legal disputes.
From salary disbursement to PF/ESI contributions and income tax deductions, an EOR handles complete payroll processing along with statutory and optional employee benefits.
Local HR support provides employee assistance, grievance handling, documentation, and cultural adaptation, making your workforce feel secure and supported.
Here’s a simplified step-by-step breakdown of how Employee of Record services function in India:
You Select Candidates: You find the talent you want to hire in India—either independently or with the help of a recruiter.
EOR Becomes Legal Employer: The EOR service provider becomes the official employer in India, handling all contracts and statutory responsibilities.
Onboarding & Documentation: The EOR manages offer letters, employment agreements, tax declarations, and registration with government portals like EPFO, ESIC, and TDS.
Payroll & Benefits Administration: Salaries, bonuses, reimbursements, and all applicable employee benefits (such as health insurance or gratuity) are processed by the EOR.
Compliance & Statutory Reporting: The EOR files all required reports, pays local taxes, and ensures labor law compliance.
HR Support & Exit Management: The EOR assists with performance issues, terminations, full & final settlements, and exit documentation.
Not all EOR service providers in India offer the same level of service, compliance, or technology. Here are the key considerations before choosing your partner:
Legal and HR Expertise: Ensure the provider has a solid understanding of India’s dynamic employment regulations and HR responsibilities, including state-level labor laws.
Local Presence: Having operational strength in cities like Chennai or other major hubs ensures faster execution, cultural alignment, and better employee engagement.
Scalability: Whether you need to hire 1 or 1000 employees, your EOR should support seamless scaling without compromising service quality.
Transparent Pricing: Avoid providers with hidden fees. Ask for a clear breakdown of service charges, tax handling, and benefits administration.
Technology Integration: A robust HRMS or payroll platform ensures real-time visibility into your workforce, payroll status, compliance updates, and employee documentation.
Adopting Employee of Record services can transform how your business expands and manages operations in India:
Accelerated Expansion: Enter the Indian market quickly without worrying about legal frameworks or local office setup.
Cost Savings: Outsourcing HR, legal, and payroll responsibilities to an EOR saves you from hiring in-house experts or consultants.
Reduced Risk: With labor law compliance taken care of, your business is shielded from lawsuits, penalties, and employee disputes.
Improved Employee Experience: Professional handling of HR processes, payroll, and employee benefits leads to higher retention and satisfaction.
Strategic Flexibility: Test new markets, onboard project-based talent, and pivot quickly without long-term liability.
If You Hire SBSHR as Your EOR Services Provider, the Following Benefits You Will Get:
Speed to Hire | Onboard employees in less than a week across India. |
Full Compliance | We handle PF, ESI, Income Tax, Shops & Establishment, and more |
Expert HR Support | Local HR professionals manage every touchpoint with employees |
Transparent Pricing | No hidden charges. Clear breakdown of service fees and statutory costs |
Tailored Employee Benefits | Custom plans for medical insurance, leave policies, and more |
Scalable Operations | Whether you hire 1 or 1000, we’re ready to scale with you. |
Technology-Driven | Access employee records, payslips, and compliance documents in real-time through our secure portal |
Strategic Focus | You focus on business growth; we handle the HR engine. |
At SBSHR, we take pride in being a reliable and experienced EOR service provider in India, with strong capabilities in Chennai and pan-India coverage. Here’s how we support your business:
We act as your employee’s official employer and handle all formal employment responsibilities—contracts, payroll, taxes, and compliance.
Our team handles onboarding, documentation, grievance redressal, leave tracking, exit formalities, and more—fulfilling full HR responsibilities.
We take care of monthly payroll processing, statutory deductions, tax filings, and year-end Form 16 generation for employees.
We provide tailored employee benefits packages, including health insurance, wellness programs, reimbursements, and statutory benefits like PF, ESI, and gratuity.
Our on-ground team in Chennai and other cities offers cultural and operational support to both your team and your employees.
Whether you are a foreign company expanding into India or an Indian business hiring remote workers across the country, SBSHR’s Employee of Record services offer you a compliant, cost-effective, and agile solution. From Chennai to Mumbai, Bengaluru to Delhi—we help you hire, pay, manage, and retain employees legally and efficiently, without setting up a company.
Looking for a trusted EOR & PEO Service Provider in India?
Shreshtha Business Solutions LLP
Shreshtha Business Solutions LLP
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