What is Employer of Record (EOR) in India: Everything You Need to Know for Global Team Expansion

If you’re looking to scale your global workforce perhaps expanding your team of software engineers fluent in Python, Java, JavaScript/TypeScript, or Go, or recruiting DevOps specialists, AWS solutions architects, or full-stack developers across India then you’ll want to understand in depth how an “Employer of Record” (EOR) model works. I’m writing this for you business leaders at MNCs or fast-growing global companies of 10–10,000 employees who are actively expanding and wondering: How do I hire in India without the headache of setting up a legal entity?

Here i'll try to explain: “Everything You Need to Know as a Beginner: What, Why, When, Where, How, Whose of Employer of Record (EOR) for Global Team Expansion in India.” I’ll walk you through with a people-first approach: the problems you face, the pain points, and the solution path.

At each step I’ll draw on real-world experience and our expertise at AnjuSmriti Global Employer of Record (EOR) Service, delivering global payroll & employment outsourcing, international staff-on-payroll services, employee-leasing/staff-leasing/PEO solutions.

What is Employer of Record (EOR) for Global Team Expansion?

You know the challenge: you’re ready to hire a software development team in India (Mumbai, Delhi, Bengaluru, Noida, Gurugram, Hyderabad, Chennai, Pune) but setting up a legal entity takes months, significant cost, and you’re unsure of all the state and central regulations. It’s frustrating (problem). You risk delays and compliance pitfalls (agitate). The EOR model gives you a way to hire talent quickly, compliantly, and focus on your core business (solution).

Definition & core concept

An EOR (Employer of Record) is a third-party organization that becomes the legal employer of your workers in a jurisdiction (for example, India), while you retain operational control: you assign the work, manage performance, set KPIs, and run the project. The EOR handles employment contracts, payroll, statutory benefits, tax withholding, compliance with labour laws, onboarding, and off-boarding. So when you partner with us at AnjuSmriti, you can hire engineers, QA specialists, product managers in India, without setting up a dedicated subsidiary. We act as the legal employer on your behalf.

Key differentiator: EOR vs entity vs PEO

It’s crucial to understand the difference:

• Setting up your own entity means you become the legal employer and bear all compliance and administrative burden.

• A PEO (Professional Employer Organization) may enter a co-employment relationship, but may not relieve you entirely of legal responsibilities.

• An EOR fully becomes the legal employer - so you don’t have to set up a local entity and you shift most liabilities to the EOR. For a business like yours seeking to hire Indian software engineers in Java, Python, or cloud roles without months of legal setup the EOR model makes strong sense.

Why this matters for global expansion

When your company is scaling globally, you want to move fast. Whether you’re hiring DevOps, AWS Solutions Architect, or full-stack engineers in India, you want to focus on recruiting and onboarding people, not spending time navigating registration, compliance paperwork, or entity approvals. The EOR model gives you speed, flexibility, and compliance assurance. At AnjuSmriti, we’ve helped global businesses hire 50+ engineers in India within weeks, handle payroll in INR, ensure PF/ESI/gratuity compliance, and let you focus on building your R&D centre rather than your back-office.

Why use an Employer of Record (EOR) when expanding in India your global team?

You might wonder: “Can’t I just hire directly in India?” “Why do I need an EOR?” These are valid questions. Let’s explore.

The problem & why it matters

If you hire directly in India without an entity, you risk non-compliance: incorrect contracts, incomplete statutory deductions (like EPF, ESI, gratuity), violation of Shops & Establishments Acts across many states, and unexpected legal exposure. You may delay hiring while you set up a legal entity, opening bank accounts, registering for tax, recruiting infrastructure, etc. That costs time and money.

The pain of delays and risk

When your competition is moving fast, waiting months to establish your entity means missed opportunities: talented engineers take other offers, you fall behind in product development, your global HR team is diverted into back-office work instead of strategic hiring. Moreover, non-compliance could bring penalties, reputational risk, and employee dissatisfaction. For example: A company wanted to hire 20 Java developers in Bengaluru, but their entity registration took 6-8 months; meanwhile they lost 30% of candidates, project timelines slipped, and costs ballooned.

The solution offered by an EOR

By partnering with a dedicated EOR like AnjuSmriti, you can hire in India within days to a couple of weeks, not months. The EOR becomes the legal employer, handles onboarding, payroll in INR, statutory contributions, tax filings, benefits, termination compliance, and you just focus on choosing talent, defining the role (say, full-stack engineer with React & Node, or AWS Solutions Architect), and integrating them into your global teams. This speed and compliance frees up your HR and finance teams to focus on strategic hiring and managing your tech recruitment funnel (for roles such as DevOps, data scientists in Python, cloud engineers).

Ready to scale fast? Let’s talk about how we can onboard your team in India within a fortnight.

Additional benefits

• Cost-efficiency: Avoid entity setup costs, legal fees, local registrations and infrastructure build-up. Many EOR pricing models are transparent.

• Flexibility and low risk: Test new markets (Mumbai, Chennai, Pune) without long-term commitments; scale up or scale down effortlessly.

• Compliance assurance: Local expertise in 28 states and 8 union territories ensures you comply with multi-state rules for social security, labour law, termination.

• Talent access: Tap into India’s huge talent pool (developers, engineers, tech project managers) quickly, instead of being held back by red tape.

• Focus on core business: Your team focuses on hiring the right candidate, building culture, performance management - while we handle payroll, statutory benefits, contracts, data protection.

When should you consider using an EOR?

Timing matters. You may wonder: “Is this only for startups?” “When is the right time for us, an MNC with 500 employees, to use an EOR?” Let’s answer these.

Recognizing the trigger moments (problem)

You might face one of these situations:

• You need to staff a project in India rapidly (e.g., full-stack team of 10 engineers) and cannot wait months.

• You’re entering a new market (India) for the first time and don’t know local entity requirements.

• You want to avoid entity setup because it’s low volume right now but you expect growth.

• You want your HR and operations teams to focus on strategic hiring and not get bogged down in compliance. These scenarios create friction (agitate): delayed hiring, cost overruns, diversion of internal resources, legal uncertainty.

The solution: adopt an EOR at the right time

The best time to choose an EOR is when:

• You have identified the talent and the role (say, “Senior Python Backend Engineer – Mumbai”) and you want to move fast.

• You want to hire across multiple states or cities in India (Bengaluru, Hyderabad, Noida) and need a partner who knows local labour laws.

• You are uncertain if you will hire dozens or hundreds of employees and want flexible scaling without entity risk.

• You’re incorporating global payroll & employment outsourcing as part of your expansion strategy and want to standardize your processes.

In short: If you’re actively expanding your team and want to hire in India without entity setup, now is the time to act.

Want to talk timelines and pricing? Reach out and let’s map out how quickly we can get your Indian hiring live.

Real-world example

We worked with a mid-sized SaaS company (approx. 350 employees globally) that planned to open a satellite engineering hub in Pune. They estimated hiring 25 engineers in first year, most in Angular + Node.js, and some DevOps (Kubernetes) roles. Instead of spending 5–6 months to set up an Indian entity, they engaged us as their EOR partner. We completed onboarding of first 10 engineers in 3 weeks, set up payroll in INR, ensured PF, ESI compliance, and helped them scale to full 25 headcount in 8 weeks. Their internal HR team focused on talent sourcing, culture building and performance workflows—not legal setup.

Where does the EOR model apply (and where does it not)?

You need to know the geography, use cases, and boundaries of the EOR model. Here’s how and where “hire in India without entity” can apply.

Where it applies (problem)

You are a global business looking to hire in India (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Pune). You don’t have a local entity in India, don’t want to invest upfront setting one up, but you still want to access Indian talent quickly and legally.

Without the right model you may be stuck or you may hire incorrectly (contractor misclassification, labour law violations).

Solution: Use an EOR service partner who already has a legal presence in India and assumes the employer responsibilities.

Specific applicable scenarios

• Hiring software developers (Java, Python, JavaScript/TypeScript, Go) for your global engineering team in India.

• Recruiting IT support, QA engineers, DevOps engineers in Indian tech hubs without entity setup.

• Expanding your team of AWS Solutions Architects, Cloud Engineers, Data Scientists in India.

• Running a pilot in India before committing to large scale entity establishment.

• Managing global payroll & employment outsourcing as part of multi-country expansion strategy.

Where it might not apply (caveats)

• If you plan to hire hundreds or thousands of employees in India long-term and want full control of entity, culture, brand presence—then setting up your own entity may eventually make more sense.

• If you require full control over legal entity, banking, local governance, local board, etc.

• If your business has specific industry-regulated roles requiring entity registration, local licensing, etc. In such cases, the EOR can be a transitional strategy or a complement, but you’d revisit entity setup as you scale.

Choosing cities and locations in India

When you hire across cities like Bengaluru, Hyderabad, Pune, Chennai, Noida, Gurugram, Mumbai, it's important to work with a partner who understands state-specific employment laws, professional tax, labour rules. At AnjuSmriti we cover nationwide across major tech hubs so you don’t have to worry about state-wise differences.

How does the Employer of Record (EOR) in India Expansion process work step by step?

Here’s the crucial section: you understand what it is, why it’s useful, when and where it applies. Now I’ll walk you through how the process works, what you should expect when you partner with an EOR, what your internal role will be, and how we at AnjuSmriti deliver this.

Step 1: Define the role & engage your recruitment process

You, the hiring company, define the position you want: e.g., “Senior Backend Engineer – Python & Django – Bengaluru” or “Cloud Data Engineer – AWS + Terraform – Hyderabad”. You handle candidate sourcing or engage your preferred recruitment agency (remember articles like “IT Recruitment Agencies in Delhi NCR” or “Top Recruitment Agencies in Bangalore for Tech & IT Hiring”). Once you have identified the candidate & made an offer, that’s where the EOR process kicks in.

Step 2: Agree scope with EOR (we at AnjuSmriti)

We define in writing the engagement: roles, salary in INR, benefits offered, grade, employment type, probation period, termination conditions. We prepare the employment contract in compliance with Indian labour law (shop & establishment act, labour code, PF, gratuity if applicable).

Step 3: Employment contract & onboarding

We (EOR) issue the employment contract under Indian law, the candidate signs. We collect required documentation: Aadhaar, PAN, bank account, proof of education, address, etc. We register the employee with statutory schemes: Provident Fund (PF), Employee State Insurance (ESI) if eligible, professional tax (state specific), gratuity eligibility after 5 years of service. On day one, the employee is officially on payroll under the EOR entity. You (the company) manage their daily work, performance, project assignments.

Step 4: Payroll, benefits & compliance

Each month, we run payroll in INR, issue payslips, deduct tax at source (TDS), apply PF/ESI contributions, professional tax, gratuity accrual, leave & termination provisions. The EOR handles all filings, records, state/central compliance. Meanwhile you focus on their performance, integration into your global team, tech stack (e.g., Node.js + React, Java microservices, cloud native AWS + Kubernetes), and growth.

Step 5: Ongoing employment lifecycle

If there are salary revisions, role changes, promotions, we update contracts and re-register as needed. If termination or off-boarding happens, the EOR handles the legal requirements (notice period, severance, final PF, ESI if applicable). You remain in full control of the employee’s day-to-day responsibilities, key results, integrations into your global team.

Step 6: Scaling & reporting

As you expand your team, we scale the payroll & employment outsourcing for you. We provide reports, dashboards, consolidated global payroll data across India and your other markets (if any). You maintain one point of contact for your global hiring strategy, while we handle local execution.

Our value add

At AnjuSmriti, we leverage our expertise in global payroll & employment outsourcing, staff-leasing and PEO services, to ensure:

• Rapid onboarding of talent in India, across tech hubs

• Compliance assurance across 28 states and 8 union territories

• Transparent pricing and cost modelling (avoiding surprises)

• Integration with your recruitment and staffing agencies, so your “candidate to hire” funnel is seamless

• Real-world experience working with global businesses of 100–10,000 employees, expanding into India

• We understand the tech roles you’re hiring for (software engineers, cloud architects, full-stack developers) and we tailor our service accordingly.

Want to explore how we can integrate into your recruitment workflow (for example, you already use staffing agencies in Delhi NCR or Bengaluru) and enable hiring in India quickly? Get in touch for a custom consultation. [Third CTA]

Whose responsibilities? Who does what in the EOR model?

Clarity on roles is vital for you to avoid confusion between your company, the EOR, and the employee.

Your company’s responsibilities (you)

• Define the role, the required skills (say Java + Spring Boot + Microservices), job description, selection, interviewing, offer.

• Set the project's tech stack, performance goals, integrate the hire into your global engineering or IT team.

• Manage day-to-day supervision, project tasks, code reviews, deliverables.

• Provide employee engagement, culture, career path, technology training (e.g., the latest in React, Kubernetes, AWS Lambda).

• Maintain strategic oversight of global hiring, global payroll strategy, workforce planning.

The EOR’s responsibilities (us)

• Act as legal employer in India: issue the employment contract, maintain statutory records.

• Handle payroll processing in INR, tax withholding, PF/ESI, professional tax, gratuity accrual.

• Ensure compliance with Indian labour laws: Shops & Establishments, labour code reforms, terminations, state variations.

• Manage onboarding logistics (documents, bank details), issue payslips, manage benefits/admin.

• Provide reporting, audits, ensure data protection, maintain employer-of-record status and risk management.

• Off-board when needed, handle termination formalities, ensure statutory benefits paid.

• Allow you to scale without setting up your own entity and manage your global payroll & employment outsourcing.

The employee’s role

• Accept the offer, sign the employment contract issued by the EOR.

• Work for your company, integrate into your team, deliver on projects, use the tech stack (Python, Java, AWS, etc.).

• Follow company policies, performance metrics, adhere to global and Indian working norms.

• Be onboarded via the EOR’s process and be part of the organisation from a legal employment standpoint.

By clearly delineating these responsibilities from the start, you avoid confusion and ensure smooth operations.

Key considerations & checklist when selecting an EOR partner for India

To ensure you choose the right EOR partner aligned to your global hiring goals, here are factors you need to evaluate. We at AnjuSmriti have integrated all these into our approach.

Compliance expertise

• Depth of understanding across Indian states and union territories (labour law, professional tax, Shops & Establishments, Telangana vs Karnataka vs Maharashtra differences)

• Proven track record with companies of your size (10–10 000 employees)

• Ability to handle terminations, severance, local filings.

Payroll capabilities

• Monthly payroll in INR, timely disbursements, correct tax deductions, payslips, record-keeping.

• Consolidated global payroll reporting if you have other markets.

• Transparent cost modelling (salary + employer contributions + EOR fee)

Employee experience & retention

• Good onboarding practices for engineers, tech-stack orientation, performance metrics, employee support.

• HR support for issues (grievances, benefits, professional development)

• Ability to integrate with your talent management (you may have global HRIS, performance reviews, what we cover in articles about executive onboarding process etc).

Scalability and flexibility

• Ability to scale from single hires to dozens/hundreds.

• Flexible termination/downsizing without major cost or liability.

• Option to transition to entity setup later if you choose.

Industry and tech-specialist understanding

• Familiarity with hiring engineers, software teams, cloud architects, DevOps — so they understand tech-industry hiring nuances.

• Integration with your recruitment agency or IT staffing firm that sources these profiles.

Technology & data security

• Secure HRIS platform, data protection, SOC compliance if applicable.

• Ability to integrate with your global systems (for example we often support clients who use Workday, SAP, or other HR systems)

• Transparent reporting dashboards.

Cost transparency and exit-option clarity

• Clear fee structure: flat monthly per employee, percentage of payroll, or hybrid.

• Minimum term, termination clauses, what happens if you later want to convert to your own entity.

• No hidden costs (on-boarding fees, off-boarding fees, state registration fees)

• Clear cost comparisons: entity setup vs EOR route.

Internal alignment

• You should align your global HR, legal, finance and tech recruitment teams before engaging.

• Ensure your hiring managers understand that the EOR is the legal employer but they retain performance and operational control.

• Link to your other articles: “What does a C-Suite Executive Search Firm actually do?”, “Tech C-Suite Recruitment: Hiring a CIO in the Digital Age” – because your global team’s leadership must be comfortable with this model.

Best practices for success when using an EOR for global team expansion

With the right partner and model in place, here are practices to ensure you maximise value, especially when hiring in India for tech talent.

1. Clearly define who is accountable for what

From day one: your internal team drives recruitment, role definition, and performance metrics. The EOR handles employment, payroll, compliance. Make this clear in your service-level agreement and internal documentation.

2. Maintain your global recruitment standards

Treat hires through EOR as full-fledged team members: same onboarding experience, code review process, performance metrics, training and career path as your other global engineers. This is especially important for roles like Senior Java Microservices Developer or AWS Solutions Architect. When these hires feel like second-class, retention suffers.

3. Use the EOR to accelerate time-to-hire

Leverage the EOR’s established legal presence and payroll setup to shorten your hiring timeline. In practice with our clients: we’ve reduced time-to-onboard in India from 8-12 weeks (entity route) to 2-4 weeks via EOR. You save weeks, begin deliveries sooner, and get ROI faster.

4. Monitor compliance and local risk proactively

Though your partner handles compliance, you still need to monitor dashboards, audits, and ensure the EOR remains current with legislative changes (for example new Indian labour code reforms, state variations). At AnjuSmriti we provide you with quarterly compliance reports and changes to statutory laws so you are never surprised.

5. Integrate payroll & staffing with your global finance/HR stack

Ensure the EOR’s platform integrates with your global finance (for example multi-currency consolidation), and HR systems so you have one view of total cost per employee, global headcount, and the tech stack across regions. This allows you to compare cost of hiring engineers in India (say in Bengaluru) vs other regions and make data-driven decisions.

6. Plan for scalability and potential entity transition

Even if you start small, think about scalability: if you may grow to 200 engineers in India, what happens then? Does your EOR offer transition support to entity setup if needed? Does your contract allow conversion? We at AnjuSmriti support that transition and help clients plan early.

7. Focus on culture, retention, and technology alignment

Even though you hire via EOR, retention still matters. Tech engineers in India expect strong culture, meaningful work with modern stacks (React, Node, Java, Go, AWS, Kubernetes), remote collaboration, career growth. Use the hiring model you’ve created (e.g., in “how to hire AWS Solutions Architect in India” article) and treat your India team as integral, not separate.

Real-world scenario: How we helped a global business expand with EOR in India

Let me share a concrete example of how AnjuSmriti helped one of our global clients.

Client: A US-based SaaS company (~400 employees worldwide) launching a new product module and decided to hire 20 engineers in India (Bengaluru & Pune). They needed full-stack developers (React + Node.js), backend microservices in Java, and DevOps engineers (AWS + Kubernetes + Terraform).Challenge: They didn’t have any Indian entity; setting up would take 4-6 months. Delayed hiring would delay product launch by at least 3–4 months.

Solution via EOR (us):

• We engaged in week 0 and defined scope, cost modelling, and timeline.

• By week 2, we prepared compliant employment contracts, collected documentation, and onboarded the first cohort of 5 engineers.

• We ran payroll in INR, handled PF/ESI, professional tax, and monthly payslips.

• The client’s global HR and recruitment teams focused on sourcing, interviewing, selecting.

• In 10 more weeks we reached 20 engineers onboarded across two cities.

• We provided monthly dashboards to the client: headcount, cost, compliance status, retention.

  Results: Product module went live 2 months earlier than if they had gone entity route. HR and finance teams were freed from entity setup burden. Retention after 6 months was 92%.You can use this story to envision how you might scale your cloud engineering or full-stack team in India via EOR.

Key trends and outlook in 2025 and beyond for EOR & global team expansion

When you’re hiring globally, you want to stay ahead of what’s changing. Here are key trends relevant to EOR and India hiring of tech talent.

Talent intensification in India

India continues to grow as a global engineering hub: large pool of software developers with skills in Python, Java, JavaScript/TypeScript, Go, cloud native (AWS, Azure, GCP), DevOps, AI/ML. Many global businesses are focusing on India to expand their tech workforce. This means competition for talent is increasing, so speed to hire, employer brand, culture and career path matter more.

Remote/hybrid engineering and global team collaboration

The global tech workforce model is shifting to distributed teams across geographies. Hiring in India via EOR becomes a strategic advantage: you tap into time-zone complementarity, cost-effective talent, and grow a global engineering footprint.

Increased regulatory and compliance focus

Indian labour laws have been evolving (labour code reforms, state-wise differences). Companies need to ensure their EOR partner is updated and compliant. Non-compliance risks remain high. Therefore selecting a partner with strong compliance infrastructure is key.

Consolidation of global payroll and employment outsourcing

Large global companies increasingly favour centralised global payroll & employment outsourcing platforms (covering multiple countries via EORs or partner networks). You should plan your India EOR integration with your overall global payroll strategy.

Focus on tech hiring growth sectors

Roles such as cloud engineers (AWS Solutions Architect, Azure, GCP), data engineers, full-stack JavaScript/TypeScript, DevOps/Kubernetes, AI/ML engineers are in high demand. When you hire these roles via EOR in India, you’ll want the partner to understand those roles, salary benchmarks, skill expectations, and integrate with your global tech stack.

By staying aligned with these trends, you place yourself ahead in global talent acquisition strategy.

Summary – your checklist and next steps

Here’s what to keep in mind and what you should do next:

• Recognise the problem: you need to hire talent in India quickly, but don’t want to set up a legal entity and deal with complex compliance.

• Understand that using an EOR is a valid, strategic way to hire software engineers, cloud architects, DevOps engineers, full-stack devs in India (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Pune) without entity setup.

• Decide when: if you’re ready to hire now, or to test India market, EOR is the route. If you’re scaling massively long-term and want full control, you may eventually setup your own entity but you can start with an EOR.

• Choose an EOR partner carefully (compliance expertise, payroll capability, tech hiring understanding, scalability, cost transparency) and ensure recruitment & staffing functions integrate seamlessly.

• Follow best practices: define roles → recruitment → partner with EOR → onboarding → payroll & compliance → performance & retention.

• Use your content ecosystem (recruitment agency articles, hiring roles articles) to link internally and build authority.

• Stay mindful of tech hiring trends, talent competition in India, global payroll outsourcing, and regulatory changes.

• Take action now: Talk to us at AnjuSmriti Global Employer of Record (EOR) Service. Let’s map your hiring plan, cost modelling for India, timeline for hiring software engineers or cloud architects, and how quickly you can get them onboarded via our global payroll & employment outsourcing model.

If you are actively expanding your team and want to hire a candidate in India without the burden of entity setup, the EOR model is a powerful strategy. With AnjuSmriti as your EOR partner, you combine our expertise in payroll & employment outsourcing, international staff-on-payroll service, employee leasing/staff leasing/PEO with your recruitment, talent acquisition, and tech hiring drive.

You get speed, compliance, scale, and access to India’s deep talent pool (developers, engineers, cloud specialists). Meanwhile your internal teams (HR, Recruitment, Finance) stay focused on strategy and delivery, not back-office administration. Remember: you stay the employer in operational terms, but we become the legal employer on paper. You decide whom to hire, set their tech stack (Python, Java, TypeScript, Go, AWS), manage their performance, and we handle the rest. Let’s partner to make your global team expansion in India not only seamless, but a competitive advantage.

Ready to start? Reach out to us at AnjuSmriti today and let’s work together to hire your next 10, 50 or 100 talent in India fast, compliant and people-first.

Frequently Asked Questions (Q&A) – as you search for EOR in India & Global Payroll Outsourcing

In the research phase, you (or your hiring manager, CFO, global HR lead) will invariably ask questions. Here are key ones and thoughtful responses:

Q1: Why can’t I just hire in India without an entity?

You absolutely can hire in India—but doing so legally as your own entity means you either need to set up a local subsidiary/branch and register with tax, PF, labour authorities, and deal with local labour law and payroll compliance. That takes months, cost, resources, and risk. An EOR gives you a legal employment framework in India without you having to create the entity. Without entity and without using an EOR, you risk misclassification (e.g., contractors being treated as employees), non-compliance, penalties, employment law violation, and you might end up assuming liabilities you didn’t foresee.

Q2: How does an EOR work in India?

Here’s the simplified flow: You find your candidate → You agree salary + role → The EOR issues the employment contract under Indian law → The EOR registers the employee for PF/ESI/Professional Tax as needed → Each month the EOR runs payroll in INR, issues payslip, deducts tax, files returns → You direct the employee’s work and integrate them into your global team. The EOR acts as employer of record, you act as operational manager.

Q3: What are the costs of hiring via EOR in India?

Costs vary depending on role, salary, state, benefits. Many providers list fees starting from a fixed monthly fee per employee plus statutory employer contributions. Some reports suggest costs per employee may start around US $1,500/month inclusive for certain roles. You must factor in salary (for example a Senior Python Engineer in Bengaluru might command INR X), employer contributions (PF, gratuity, professional tax), and EOR service fee.

We at AnjuSmriti provide transparent cost modelling: salary + statutory burden + EOR fee = total cost to company (for you). This allows you to compare with entity setup cost.

Q4: Does using an EOR protect me from compliance risk?

Yes, a reputable EOR with strong local expertise helps reduce your compliance risk significantly: they understand Indian labour laws, multi-state variations, statutory filings, social security contributions, termination law, etc. For example, an EOR helps you correctly apply PF, ESI, gratuity, leave, termination. That said: you still need to select a reliable partner, monitor quality, ensure data security and audit readiness. This is why you should evaluate reputation, industry experience, service scope (as we covered earlier in selecting an EOR partner).

Q5: What happens when I scale from 1-10 to 100+ engineers in India? Does EOR still make sense?

Yes. For initial hiring (pilot, small team) an EOR is ideal. As you scale to 100+ engineers and your strategic presence in India solidifies, you may still continue with EOR or consider setting up your own entity the decision depends on your long-term plans, cost-benefit, and control needs. Many global businesses start with EOR, then evaluate entity setup later when scale justifies it. At AnjuSmriti we support that kind of scaling: we partner with you as you grow from 5 engineers to 50+ engineers, and provide guidance when entity setup becomes viable if you decide.

Q6: What about the tech and recruitment side – how does EOR fit into my hiring funnel (recruitment agency, staffing firm, executive search)?

Great question. Your recruitment funnel remains your responsibility: sourcing, interviewing, selecting. You may work with your preferred recruitment agencies/IT staffing firms (especially for niche roles like AWS Solutions Architect, data engineer with Go, DevOps with Kubernetes). Once you have selected a candidate, the EOR comes into play for employment, payroll, compliance.

In other words: Recruitment firm → Candidate Selected → Offer → EOR Onboarding. The EOR integrates with your hiring toolkit. You can link this article to other content like your “IT Recruitment Agencies in Bangalore for Tech & IT Hiring” or “How to Hire an AWS Solutions Architect in India” articles to create a comprehensive content ecosystem.

Q7: Are there any tech stack implications or special considerations for hiring remote engineers via EOR?

Yes – from a people-first perspective: when you hire developers (Python, Java, JavaScript/TypeScript, Go) or DevOps engineers (AWS, GCP, Azure, Kubernetes), you want a seamless integration into your global team: access to tools, onboarding culture, clear performance metrics, remote collaboration norms. The EOR helps you by onboarding them smoothly, but you must ensure you provide:

• Standardised tech stack and codebase orientation

• Global engineering culture, code reviews across time-zones

• Remote communication tools and support (Slack, Jira, GitHub/GitLab)

• Performance management and career growth planThe EOR ensures legality and employment experience, you ensure productive delivery.