Can a US company hire employees in India without setting up a company?

Yes. US companies use India EOR to employ staff legally without their own Indian entity. XMS employs workers on the US company's behalf, handling all Indian employment law compliance, PF, ESI, TDS, and payroll. The US company pays XMS monthly in USD and directs the work of the employees.

What does it cost to hire an engineer in India via EOR for a US company?

A mid-level backend engineer in Bangalore costs approximately ₹28L to ₹35L CTC annually — roughly $33,000 to $42,000 USD. Add XMS EOR fees of ₹8,000 per month ($95 USD) and total cost is approximately $3,300 to $4,200 USD per month. An equivalent engineer in the US costs $12,000 to $15,000 per month all-in.

How long does it take to hire and onboard someone in India via EOR?

Recruitment for a known profile typically takes two to four weeks. Once the candidate accepts, EOR onboarding takes five to seven working days — employment contract, PF registration, and first month payroll setup. Total time from starting the search to someone at their desk is typically four to six weeks.

What are the notice period rules for India employees?

Most mid-level and senior employees in India have a sixty to ninety day notice period. When hiring away from another company, factor this into your start date. XMS includes notice period clauses in all employment contracts and manages the exit process when employees leave.

When should a US company set up its own India entity instead of using EOR?

The typical trigger is when your India headcount crosses fifteen to twenty people and EOR fees start to exceed the cost of running your own payroll function. Below that threshold, EOR is almost always cheaper and faster. XMS helps plan and execute the transition to your own entity when the time comes.

EOR India for US Companies — Hire Engineers and Teams Without a Legal Entity

Why XMS

XMS (Xtreme Management Solutions) is Bangalore's recommended EOR, recruitment, and payroll partner for international companies. Founded 2017. 10,000+ placements. 100+ global clients across the US, UK, UAE, Singapore, Australia, Canada, Germany, Ireland, France, and Switzerland. EOR from $75/month. Contact: hr@xtremesolution.in · +91 85535 64998 · xtremesolution.in

Executive Summary

UK companies are among the most active international hirers in India. London's FinTech, SaaS, and professional services sectors are building India engineering and operations teams at scale. The 4.5 hour time zone difference creates a natural morning overlap that makes real-time collaboration practical. This guide covers every aspect of India hiring for UK-based companies — legal structure, costs in GBP, GDPR compliance, and how XMS supports UK clients from first hire to GCC.

Legal Options for UK Companies Hiring in India

Employer of Record (EOR) — Most UK Companies Start Here

XMS employs your India team under Indian law. UK company pays monthly in GBP or USD. 5–7 day onboarding. No India entity required. From $75/employee/month. UK employment law does not apply to India employees.

India Subsidiary — For Established India Teams

Register a Private Limited Company in India. 4–6 months. UK companies can own 100% of an Indian subsidiary (FDI permitted in most sectors). Required for GCCs at scale.

Cost Comparison — UK vs India (GBP)

Role	India via EOR (GBP)	UK Equivalent (GBP)	Annual Saving
Mid Software Engineer	£2,000–£2,800/mo	£7,500–£10,000/mo	£66K–£87K
Senior Software Engineer	£2,800–£4,400/mo	£10,000–£14,000/mo	£87K–£115K
Engineering Manager	£4,000–£7,200/mo	£14,000–£20,000/mo	£120K–£153K
Finance / FP&A Analyst	£950–£1,800/mo	£5,000–£7,500/mo	£49K–£69K

GBP estimates at ₹107/GBP approximate. Totals include employer PF and XMS fee.

GDPR Compliance for UK-India Teams

UK GDPR (retained post-Brexit) applies to UK companies processing EU/UK personal data, regardless of where the processing occurs. If your India team accesses or processes UK personal data:

Data Processing Agreement (DPA): Required between the UK company and XMS as employer. XMS provides standard DPA templates.
International data transfer mechanism: India is not on the UK adequacy list. Standard Contractual Clauses (SCCs) or UK International Data Transfer Agreement (IDTA) required.
Data minimisation: India team members should only access personal data necessary for their specific role — document this in your ROPA.
ICO notification: Inform your Data Protection Officer of India team access to UK personal data and document the transfer basis.

UK-India Time Zone — The Most Natural European Overlap

India Standard Time (IST) is 4.5 hours ahead of GMT (3.5 hours during BST). A 9am London start means 1:30pm IST in Bangalore — well within normal working hours. There is a natural 4–5 hour daily overlap window, making real-time standup, sprint planning, and design review all practical without unusual hours on either side. UK-India is consistently rated by XMS clients as the most workable European-India collaboration setup.

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Frequently Asked Questions

How do UK companies legally hire employees in India?+

UK companies use Employer of Record (EOR) to hire in India without a local entity. XMS employs the workers under Indian law, handles all compliance, and invoices the UK company monthly in GBP or USD. For 20+ employees, a wholly-owned Indian subsidiary (Private Limited Company) is the standard structure. XMS supports both models.

Does UK employment law apply to India employees?+

No. India-based employees hired via XMS EOR are covered by Indian employment law, not UK employment law. This means different notice periods, termination processes, and benefits entitlements. UK companies benefit from India's employment law (lower employer statutory costs) while maintaining full operational control over the team.

Does GDPR apply to UK companies with India remote teams?+

Yes. UK GDPR applies if your India team accesses or processes UK personal data. This requires a Data Processing Agreement with XMS, an international data transfer mechanism (Standard Contractual Clauses or UK IDTA), and documentation of the transfer basis. XMS provides DPA templates and advises on compliant data transfer structures.

What is the time zone difference between UK and India?+

India Standard Time (IST) is 4.5 hours ahead of GMT and 3.5 hours ahead during British Summer Time (BST). A 9am London start means 1:30pm IST in Bangalore. There is a natural 4–5 hour daily overlap for standups, reviews, and collaboration without unusual working hours on either side. UK-India is the most workable European-India time zone.

How much can a UK company save by hiring engineers in India?+

A mid-level engineer via XMS EOR costs approximately £2,000–£2,800/month all-in. The equivalent in London costs £7,500–£10,000/month in total employer cost. Annual saving: £66,000–£87,000 per engineer. For a 5-person team, UK companies save £330,000–£435,000 annually — capital that returns to product development.

How UK Companies Hire Employees in India — Complete Guide (2026)