Employer of Record Services in India

Hire employees in India without establishing a legal entity. XMS becomes your legal employer of record, handling all payroll, compliance, and HR while you focus on building your team.

Book Consultation Call +91 85535 64998
Understanding EOR

What is Employer of Record?

Employer of Record (EOR) is a service that allows global companies to hire employees in India without the complexity and cost of setting up a legal entity.

When you use XMS as your Employer of Record in India, we become the legal employer for your Indian team members. This means we handle all aspects of employment administration, including contracts, payroll processing, tax compliance, and benefits management.

You retain complete control over your employees' day-to-day work, performance management, and business objectives. We simply handle the legal and administrative aspects of employment, ensuring full compliance with Indian labor laws and regulations.

Key Benefits of EOR

EOR is ideal for companies testing the India market, building small to medium-sized teams (1-50 employees), or those needing to hire quickly for project-based work. For more information on hiring in India, see our comprehensive guide on how to hire employees in India.

The Process

How EOR Works

Our streamlined four-step process gets you from agreement to onboarded employees in 30-45 days.

1

Define Your Requirements

We discuss your hiring needs including roles, skill requirements, team size, budget, and timeline. You can either provide candidates or leverage our recruitment services to source talent.

2

Recruitment or Onboarding

If you have candidates, we prepare their employment documentation. If you need recruitment support, our team sources, screens, and presents qualified candidates for your approval.

3

Legal Employment Through XMS

We execute employment contracts, complete PF/ESI registrations, set up payroll systems, and handle all onboarding documentation. Your employees are legally employed by XMS.

4

Ongoing Payroll & Compliance

We process monthly payroll, handle tax deductions and remittances, manage benefits, maintain compliance with all labor laws, and provide ongoing HR support.

Full Compliance

Compliance Responsibilities We Handle

Indian employment compliance is complex. We manage every aspect so you don't have to.

Statutory Compliance

India has multiple mandatory employer contributions and compliance requirements. XMS handles all of these on your behalf:

Provident Fund (PF): We manage employer contributions (12% of basic salary), employee deductions, monthly remittances, and annual compliance returns. We ensure timely deposits by the 15th of each month to avoid penalties.

Employee State Insurance (ESI): For employees earning below ₹21,000 per month, we handle employer contributions (3.25%) and employee deductions (0.75%), including registration, monthly payments, and quarterly returns.

Tax Deduction at Source (TDS): We calculate income tax based on employee declarations, deduct appropriate amounts, deposit with tax authorities by the 7th of each month, and file quarterly TDS returns (Form 24Q).

Professional Tax: State-specific professional tax is calculated, deducted, and remitted according to each state's requirements (varies from ₹200 to ₹2,500 annually).

Gratuity: We maintain gratuity provisions (4.81% of salary) for employees who complete 5 years of service, ensuring compliance with the Payment of Gratuity Act.

Labor Law Compliance

All compliance activities are managed by our experienced team, with full audit trails and documentation. You receive monthly compliance reports showing all statutory payments, filings, and employee records.

Transparent Pricing

EOR Pricing Structure

Simple, transparent monthly fees based on your team size.

$150 - $300

Per employee, per month

Pricing depends on team size and services required. Includes:

  • Legal employment contracts
  • Monthly payroll processing
  • All statutory compliance (PF, ESI, TDS, PT)
  • Employment documentation
  • Benefits administration
  • HR support and consultation
  • Leave tracking and management
  • Compliance reporting

Volume discounts available for teams of 10+ employees.

No setup fees. No hidden costs. Cancel anytime with 30-day notice. For a detailed cost comparison, see our guide on the cost of hiring developers in India.

Why XMS

Why Choose XMS as Your EOR Partner

🏆

9+ Years Experience

Established in 2015, we've successfully managed employment for hundreds of global companies entering the India market.

🌍

Global Client Base

We serve companies from US, UK, EU, Singapore, and Australia, understanding the unique needs of international organizations.

✅

100% Compliance

Perfect compliance record with zero statutory violations. Our expertise ensures your team is fully compliant with Indian regulations.

⚡

Fast Onboarding

From signed agreement to first employee onboarded in 30-45 days. Start building your India team quickly.

🤝

Dedicated Support

Assigned account manager who understands your business and provides proactive support throughout the engagement.

📊

Transparent Reporting

Monthly compliance reports, payroll summaries, and real-time access to employee records through our portal.

Success Story

Real Results for Global Companies

US SaaS Startup Builds 25-Person Engineering Team in Bangalore

A Silicon Valley-based SaaS company needed to rapidly build an engineering team in India to support their product expansion. They chose XMS EOR to avoid the 4-6 month entity setup process.

Challenge: Build a team of 25 software engineers in Bangalore within 90 days without establishing a legal entity in India.

Solution: Using XMS EOR services combined with our recruitment support, we sourced, screened, and onboarded qualified engineers while handling all employment and compliance aspects.

Results:

25
Engineers Hired
60
Days to Full Team
70%
Cost Savings vs US

"XMS allowed us to test the India market without the commitment of setting up an entity. Within two months, we had a productive engineering team. After 18 months, we established our own entity and XMS smoothly transitioned all employees to us."

— CTO, US SaaS Company

Common Questions

Frequently Asked Questions

Everything you need to know about Employer of Record services in India.

What is Employer of Record in India? +
Employer of Record (EOR) is a service where XMS becomes the legal employer of your India-based employees. We handle employment contracts, payroll, taxes, and compliance while you manage the day-to-day work. This allows global companies to hire in India without establishing a legal entity.
How much does EOR cost in India? +
EOR services typically range from $150 to $300 per employee per month, depending on team size and services required. This includes payroll processing, statutory compliance, employment contracts, and HR administration. Volume discounts are available for larger teams.
How long does EOR setup take? +
EOR setup typically takes 30-45 days from contract signing to first employee onboarding. This includes PF/ESI registration (15-20 days), employment contract preparation (3-5 days), payroll system setup (5-7 days), and employee onboarding (7-10 days).
Can I hire employees anywhere in India through EOR? +
Yes, XMS can hire employees across all major Indian cities including Bangalore, Mumbai, Delhi NCR, Hyderabad, Chennai, and Pune. We manage state-specific compliance requirements including professional tax and labor laws. Remote workers anywhere in India are also supported.
Who manages the employees under EOR? +
You manage the employees' day-to-day work, performance, and deliverables. XMS manages the legal employment relationship, payroll processing, statutory compliance, benefits administration, leave tracking, and HR documentation.
What compliance does EOR cover in India? +
EOR covers all statutory compliance including Provident Fund (PF), Employee State Insurance (ESI), Tax Deduction at Source (TDS), Professional Tax, Gratuity provisions, and adherence to labor laws. We handle all registrations, monthly filings, payments, and annual compliance returns.
Can I convert EOR employees to my own entity later? +
Yes, many companies start with EOR and later establish their own entity when they reach 30-50+ employees. We facilitate smooth employee transfers including PF account transfers, notice period management, and all necessary documentation.
What happens if an employee needs to be terminated? +
You make the termination decision, and XMS executes it in compliance with Indian labor laws. We handle notice period management, final settlement calculation, PF withdrawal processing, and all exit documentation.
Is Employer of Record legal in India? +
Yes, EOR is completely legal in India. It's a recognized business model used by thousands of international companies. XMS is a registered Indian company fully complying with all labor laws and tax regulations.
What employee benefits are included in EOR? +
Mandatory benefits include Provident Fund (12% employer + 12% employee), Employee State Insurance (3.25% employer), Professional Tax, Gratuity provisions, Earned Leave, Casual Leave, and Sick Leave. Optional benefits like health insurance can be added.

Ready to Hire in India?

Book a free consultation to discuss your hiring needs. We'll explain how EOR works, provide pricing tailored to your requirements, and answer all your questions.

Call +91 85535 64998 Email: [email protected]

Or learn more about hiring employees in India and explore our insights and guides.