- What is an Employer of Record (EoR)?
- Key regulatory updates (2024–25)
- Employment, Payroll & Compliance in India
- Immigration & visa management
- Why use Access Financial’s EoR in India?
- Onboarding process
- Who is this for?
- Avoid these common risks
- Ready to hire in India?
India remains one of the most strategic destinations for international business expansion. With a vast, English-speaking talent pool, a thriving digital economy, and favourable government incentives, it presents significant opportunities for companies looking to expand across Asia.
Yet employing staff in India comes with complex statutory, tax, and labour law obligations, especially for those without a legal entity in the country. Access Financial’s Employer of Record (EoR) service in India provides a streamlined, agreeable solution to hire local or expatriate employees without setting up an Indian subsidiary.
What is an Employer of Record (EoR)?
An Employer of Record acts as the legal employer of your workforce in India while you manage the employees’ day-to-day tasks and performance. As your EoR, Access Financial is responsible for:
- Issuing valid employment contracts
- Managing payroll and tax deductions (TDS)
- Handling statutory benefits and social contributions
- Registering with local and national authorities
- Ensuring compliance with Indian labour laws and the new Labour Codes
This model allows you to expand your team in India legally and efficiently – without establishing a local company.
Key regulatory updates (2024–25)
1. Labour Codes implementation (ongoing 2025)
India is rolling out four Labour Codes that consolidate 29 laws covering wages, social security, industrial relations, and occupational health. As of mid-2025:
- Most states have finalised draft rules for the Code on Wages
- Employers must ensure at least 50% of salary is basic pay
- The Codes also expand benefits coverage to gig and fixed-term workers
2. EPFO modernisation
The Employees’ Provident Fund Organisation (EPFO) now supports faster digital UAN creation, auto-transfer of PF balances, and online corrections. EPF interest is set at 8.25% for FY 2024–25.
3. Government hiring incentives
Eligible employers may receive PF contribution subsidies of up to ₹3,000 per employee/month for new hires under government-backed employment schemes.
4. Increased compliance scrutiny
Authorities are stepping up enforcement of employee rights, TDS filing accuracy, and termination protocols – making it more important than ever to partner with a knowledgeable local provider.
Employment, Payroll & Compliance in India
Legally required contracts
Employment contracts must include salary breakdowns, leave entitlements, notice periods, and must adhere to state-level Shops & Establishments Acts.
Statutory Benefits
Employers are responsible for:
- EPF (Provident Fund): mandatory for most staff earning ₹15,000/month or more
- ESI (State Insurance): applies to employees earning ₹21,000/month or less
- Gratuity, Bonus, and Maternity Leave provisions under national law
- Labour Welfare Fund (LWF) contributions in applicable states
Tax compliance (TDS)
Monthly salary taxes (TDS) must be deducted and deposited with the Income Tax Department. Accurate Form 16 generation and quarterly filings are mandatory.
Termination & exit
Termination procedures vary by state and employee type. Improper exits can result in penalties or reinstatement orders.
Immigration & visa management
Hiring expatriates in India requires employer sponsorship under the Employment (E) Visa category. Requirements include:
- Minimum salary thresholds (typically USD 25,000/year)
- FCRA compliance for NGOs
- Registration with FRRO (Foreigners Regional Registration Office) within 14 days of arrival
Access Financial can sponsor eligible expats under its EoR model and manage FRRO registrations, visa renewals, and extensions.
Why use Access Financial’s EoR in India?
No Entity needed
We employ your staff via our Indian legal entity, avoiding the need for company registration or local HR teams.
Full Labour Code compliance
We stay up to date with India’s evolving labour laws and ensure your employment practices meet national and state requirements.
Payroll, Tax & benefits management
From EPF and ESI to bonus calculations and pay slips, we handle all payroll functions accurately and on time.
Visa sponsorship for expatriates
We provide work visa sponsorship, assist with onboarding, and ensure foreign worker compliance with FRRO and visa rules.
Single point of contact
Our EoR service integrates immigration, payroll, tax, and HR, under one contract, with one trusted provider.
Onboarding process
- Initial consultation and candidate review
- Draft and issue a valid employment contract
- Register employee for EPF, ESI, LWF and TDS
- Process monthly payroll and statutory filings
- Provide onboarding documentation and employee handbook
- Support day-to-day HR needs and ensure compliance
- Manage visa and FRRO processes (if applicable)
Who is this for?
- Startups and SMEs expanding into India
- Multinationals hiring regional managers or support teams
- Recruitment firms placing talent on behalf of clients
- Project-based teams needing short-to mid-term staff
- Tech firms and remote-first businesses
Avoid these common risks
Hiring in India without local support can lead to:
- Fines for missed PF, ESI or TDS filings
- Employment contract disputes or unlawful termination claims
- Visa violations and FRRO non-compliance
- Missed opportunities for government hiring incentives
- Poor employee experience due to inconsistent HR practices
Ready to hire in India?
India’s labour laws are changing rapidly. Let Access Financial be your trusted local employer, ensuring you expand your business compliantly, confidently, and efficiently.
Speak to our team to learn how our EoR services in India can support your global growth.
Discover More – Download the India Guide