Is using an EOR legal in India?+
Yes. Engaging an Employer of Record is fully legal in India and is a well-established, compliant way for foreign companies to hire local employees without setting up their own entity. The EOR becomes the legal employer on record and takes on all statutory obligations, while you direct the employee's day-to-day work.
What does EOR stand for?+
EOR stands for Employer of Record — a company that legally employs workers on behalf of another business. In India, the EOR handles employment contracts, payroll, PF, ESI, TDS, statutory benefits and labour-law compliance, so you can hire without your own Indian entity.
What's the difference between a PEO and an EOR?+
A PEO (Professional Employer Organization) enters into co-employment with your existing local entity — it only works if you already have a company registered in India. An EOR needs no local entity at all: we become the sole legal employer on your behalf. That's why EOR, not PEO, is the right model for companies hiring in India for the first time.
How quickly can you onboard an employee in India?+
Within 48 hours of receiving the candidate's details and documents. We handle the compliant contract, payroll setup and statutory registrations (PF, ESI, professional tax) so your hire is live and legal in two business days — not the months an entity setup would take.
Which compliance and statutory obligations do you handle?+
All of them. That includes Provident Fund (PF), Employees' State Insurance (ESI), TDS, professional tax and gratuity, plus compliant employment contracts and ongoing labour-law compliance under acts such as the Payment of Wages Act and the Shops and Establishments Act. Payroll is run monthly with every deduction and filing taken care of.
What is permanent establishment risk, and how does an EOR help?+
Permanent establishment (PE) risk is when a foreign company's activities in India become substantial enough that tax authorities treat it as having a taxable presence there, triggering Indian corporate tax obligations. Hiring through an EOR reduces this risk because your team is legally employed by People EOR, not your foreign entity directly — though PE exposure also depends on factors like who signs contracts and makes decisions locally, so it's worth walking through your specific setup with us.
What's the difference between an EOR and setting up our own entity?+
Setting up your own entity gives you a direct employment relationship but is slow, costly and only worth it past a certain headcount — you take on full responsibility for Indian accounting, tax filings and compliance. An EOR lets you hire immediately with none of that overhead. We're the bridge: start with EOR, then transition to your own entity when the scale justifies it — without re-hiring your team.
Can we move from your EOR to our own Indian entity later?+
Yes — this is what sets us apart. Most EORs stop when you scale. We handle the full Pvt Ltd incorporation (RBI, GST, PF, ESI, PT registration) and migrate your employees to your own entity with zero disruption, whenever you decide to incorporate. Same team, same dashboard, throughout.
What's the difference between BPO and EOR?+
A BPO (Business Process Outsourcing) provider delivers a business function — like support or back-office work — using its own staff. An EOR doesn't do the work for you; it legally employs the people you choose, who work directly for and report to you. With an EOR you control the team and the work; the EOR carries the employment compliance.