Why Dutch Companies Come to India
Netherlands-based companies come to India for engineering talent, cost efficiency, and English-language capability. India produces a large number of software engineers, data professionals, and finance analysts who are comfortable working in English and increasingly familiar with European business practices.
Dutch FinTech and payments companies in particular find India compelling — the Indian payments ecosystem (UPI, NACH, payment gateways) is one of the most sophisticated in the world, and Indian engineers who have worked in this ecosystem have directly transferable skills to European payments infrastructure. Dutch logistics and supply chain companies benefit from India's strong analyst and operations talent base.
EOR vs Setting Up an Indian BV
A Dutch company's natural instinct is to set up an Indian equivalent of a Dutch BV — in India, this is a Private Limited Company. But the process takes four to six months, requires a local director who is an Indian resident, and generates ongoing compliance obligations including statutory audit, ROC filings, PF and ESI monthly compliance, and FEMA reporting for the Netherlands parent.
For companies deploying five to fifteen people in India, EOR is more cost-effective and dramatically faster. XMS employs your India team members legally from day one — no entity required, no directors to find, no audit to commission.
Netherlands to India — Cost Comparison
A mid-level software engineer in Amsterdam earns €65,000 to €90,000 gross annually. Dutch employer contributions — pension, health insurance, WW premium, and other social contributions — add approximately 20 to 25% on top. Total employer cost: €78,000 to €112,500 per year, or €6,500 to €9,375 per month.
The equivalent in Bangalore costs ₹28L to ₹40L CTC annually — approximately €25,000 to €36,000 at current rates. Add XMS EOR fees of approximately €85 per month and total monthly cost is €2,170 to €3,085 — a saving of 65 to 70% on comparable talent.
Time Zone Considerations
The Netherlands operates on CET (UTC+1) in winter and CEST (UTC+2) in summer. IST is UTC+5:30. This means IST is 4.5 hours ahead of CET and 3.5 hours ahead of CEST. A Dutch team starting at 9am CET has an India team already at work for 4.5 hours. There is a solid three to four hour overlap for real-time collaboration — enough for morning standups and joint work sessions without requiring unusual hours from either side.
How EOR Works for Dutch Companies
The process is straightforward. You identify who you want to hire — through XMS recruitment or your own channels. XMS issues the Indian employment contract, registers the employee for Provident Fund and ESI where applicable, processes monthly payroll with TDS deductions, and manages all statutory filings. You pay XMS monthly in EUR and direct the work of your India team completely.
Most Dutch clients onboard their first India employee within five to seven working days of the engagement being signed and documents being complete. For Dutch companies building a GCC or India capability centre, XMS provides EOR for the founding team while the India entity is being established. See our guide on EOR for GCC builds.
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