MonoHRWhat is an Employer of Record?
An Employer of Record (EOR) is a company that legally employs workers on your behalf in a country where you do not have a local entity. You manage day-to-day work; the EOR handles employment contracts, payroll, taxes, and statutory compliance.
In India, this means hiring full-time employees without registering a subsidiary first. Learn more on our EOR India service page.
How EOR works in India
- You select a candidate and agree compensation (CTC)
- The EOR issues a compliant Indian employment contract
- The EOR runs monthly payroll — salary, PF, ESI, TDS, professional tax
- The EOR files statutory returns and maintains employment records
- You direct the employee's work as you would any team member
EOR vs contractor vs own entity in India
| Model | Legal employer | Best when |
|---|---|---|
| EOR | EOR provider (e.g. MonoHR) | Fast India hiring without entity setup |
| Own entity | Your Indian subsidiary | Large long-term India presence (50+ employees) |
| Contractor | Independent contractor | Genuine project-based, autonomous work only |
See our detailed EOR vs PEO vs contractor comparison.
When an EOR makes business sense for India
- You need to hire in India within weeks, not months
- You want to test the market before committing to entity setup
- You need compliant employment, not contractor misclassification risk
- You lack in-house expertise on Indian labour law and payroll
FAQ
Who is the legal employer on paper?
The EOR is the legal employer. The employee's contract is with the EOR; you retain operational control.
What does the EOR handle in India?
Contracts, payroll, PF, ESI, TDS, professional tax, gratuity accrual, and benefits administration. See India payroll requirements.
How much does EOR cost in India?
Typically a per-employee monthly fee plus employer statutory contributions. Read EOR pricing in India.
Get started
Start hiring with MonoHR or compare providers in our best EOR for India guide.