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.

$100 - $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 2017, with 10,000+ placements and 100+ clients, we are India's trusted employment and payroll partner for global companies.

🌍

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-Based AI Startup — Exclusive Recruitment & Payroll Partner

XMS is the exclusive end-to-end recruitment and payroll partner for a fast-growing US-based AI startup operating in stealth. We manage their entire workforce — from board-level to all verticals — across India and USA with 100% statutory compliance. 600 hired in India, 40 in the US, all 700 under payroll within 6 months.

700+
On Payroll
640
Hired India+US
6mo
Full Setup

Italian MNC — Exclusive GCC Partner for India Launch

An Italian-based MNC selected XMS as exclusive partner for establishing their Global Capability Centre (GCC) in Pune in 2023. XMS built 90% of their India team across tech and non-tech roles, and simultaneously placed senior SAP and Developer talent for their USA region.

90%
India Team Built
GCC
Exclusive Partner
2
Countries Served

Germany-Based Company — India Team & End-to-End Payroll

XMS helped a Germany-based company establish their Technology and Marketing teams in India from scratch, managing complete payroll end to end — full statutory compliance, salary processing, and HR administration.

India
Team Built
Tech+Mktg
Functions
E2E
Payroll Managed
Confidential Hiring

Building in Stealth?

We've helped companies hire 700+ people with zero public footprint. NDA first, no logos, no names published without permission.

Learn More → Talk Confidentially
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 $100 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.

Trusted By 50+ Companies Across India & Globally

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