Employer of Record in India.

An Employer of Record is the legal employer of a worker in India on behalf of another business. The client company manages the employee's day-to-day work, while the EOR administers the local employment contract, payroll, applicable benefits and employment records.

It can use a suitable local EOR arrangement to employ workers without first incorporating an Indian subsidiary. The proposed role, management model, commercial activity, tax exposure and long-term plan should still be reviewed before hiring.

The client business normally manages the employee's role, priorities, performance and daily work. The EOR is responsible for the legal-employer and agreed administrative responsibilities. The service agreement should allocate responsibilities clearly.

The schedule depends on the completed commercial scope, candidate documents, background or reference checks, employment-contract review, benefit setup, work authorisation where applicable and the payroll cutoff. Navcore provides a timeline after reviewing the role.

The agreed scope can include gross-to-net payroll, salary tax withholding, applicable employer and employee contributions, payslips, approved reimbursements, variable pay, payroll reports and year-end employment documentation.

Benefits depend on the employee, compensation, work location, establishment coverage and current rules. They may include applicable social-security coverage, leave, insurance and supplementary benefits agreed with the client company.

No. An EOR becomes the legal employer for the relevant worker. A PEO commonly provides co-employment or outsourced HR support where the client already has a local employing entity. The terms are sometimes used loosely, so the legal structure should be confirmed.

An employee works under an employment relationship and receives the applicable employment protections and payroll treatment. An independent contractor runs an independent business relationship. Calling a worker a contractor does not prevent reclassification if the working arrangement is actually employment.

Work authorisation is a separate immigration matter and depends on the individual's nationality, role, qualifications, compensation and current rules. Visa or sponsorship support should be confirmed for the specific candidate before an offer is finalised.

Termination requires review of the employment contract, role, tenure, work location, reason, notice, company policy and applicable law. The client should not communicate or implement a termination before coordinating the required process with the EOR.

No. An EOR can address the employment layer, but tax presence may depend on the employee's authority, activities, duration, location and the foreign company's business model. Obtain India tax and legal advice for the proposed arrangement.

A subsidiary may become more suitable when the India team is permanent or expanding, direct employment control matters, the business needs local contracts, banking, assets or revenue, or India will own a larger operational capability. The transition should be planned before scale creates friction.

Total monthly cost normally combines employee compensation, applicable employer-side costs, benefits, reimbursements and the EOR service fee. Navcore prepares a tailored estimate because salary, city, benefits and the employment scope differ for each hire.

Navcore Global can help define the EOR scope, coordinate local employment onboarding, run agreed payroll and employment administration, support employee documentation and help evaluate when an Indian entity or GCC becomes the better long-term model.