Hire skilled Indian professionals compliantly — without setting up a legal entity. KDP Accountants acts as your legal Employer of Record in India, handling payroll, PF, ESI, TDS, employment contracts, labour law compliance, and FEMA advisory so you can focus entirely on building your business.
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An Employer of Record (EOR) is a third-party organisation that becomes the legal employer of your Indian workforce on your behalf. While you retain complete control over the employee's day-to-day work, projects, and deliverables, the EOR assumes all employer-side legal obligations under Indian law — payroll processing, statutory contributions, employment contracts, tax filings, and full labour law compliance.
In India, you cannot legally pay an Indian worker without having a registered Indian entity (PAN, TAN, EPFO, ESIC registrations at a minimum). Using an EOR bypasses this requirement entirely. KDP's existing Indian legal registration covers all of these obligations for your employees, allowing you to hire compliantly within 48 hours rather than waiting 3–6 months to set up your own entity.
This arrangement is structured as a three-party relationship: your global company (the client), the EOR (the legal employer in India), and your employee. The employee is legally employed by KDP but works exclusively for and under the direction of your company. The employment is fully documented, statutory benefits are paid, and all tax obligations are met from day one — with zero misclassification risk.
EOR services are particularly valuable for foreign companies wanting to access India's talent pool without the complexity of entity setup, startups testing the Indian market before committing to a full subsidiary, and accounting and professional services firms looking to build offshore India teams of qualified finance professionals.
Get StartedSkip the 3–6 month entity incorporation process. KDP's existing India registration means your employee can receive a compliant offer letter and be onboarded within two working days.
The EOR structure cleanly eliminates PE risk by making KDP the legal employer, not your company — protecting you from Indian tax authority assessments on your global operations.
PF, ESI, TDS, gratuity, statutory bonus — all mandated by Indian law, all handled by KDP from the employee's first day. No missed contributions, no penalties, no compliance gaps.
India's employer costs — 12% PF, 3.25% ESI, gratuity provisioning, and statutory bonus — are itemised upfront in your monthly invoice. No budget surprises, no hidden fees.
When you're ready to set up your Indian subsidiary, KDP handles both — the EOR today and the subsidiary formation tomorrow, with seamless staff transfer. No new vendors, no disruption.
EOR operates through two clean, separate contracts that work together. Your company has no direct employment relationship with the Indian worker, eliminating all PE risk.
The EOR model creates zero co-employment risk. There is no direct contractual link between your company and the Indian employee. KDP bears full legal employer liability under Indian law, ensuring your company has no PE exposure and no obligations under Indian employment legislation. The structure is fully documented and audit-ready from day one.
EOR removes every barrier between your global company and India's 600+ million-strong workforce. Here is what you gain from day one.
Skip the 3–6 month entity incorporation process. KDP's existing India registration means your employee can receive a compliant offer letter and be onboarded within two working days of finalising the role — from offer to payroll-active employee at record speed.
Hiring Indian employees directly without an entity creates PE risk — the Indian tax authority can deem your company to have a taxable presence in India. The EOR structure cleanly eliminates this by making KDP the legal employer, not your company.
PF, ESI, TDS, gratuity, statutory bonus, maternity benefits — all mandated by Indian law, and all handled by KDP from the employee's first day. No missed contributions, no penalties, no compliance gaps throughout the employment lifecycle.
India's employer costs — 12% PF, 3.25% ESI, gratuity provisioning, and statutory bonus — add up fast. KDP itemises every contribution upfront in your monthly invoice, so there are no budget surprises or hidden fees at any point.
Indian courts regularly reclassify independent contractors as full-time employees and order back-payment of all statutory benefits — including PF, ESI, and gratuity. EOR secures proper employee status from day one, eliminating this risk entirely.
Use EOR to pilot operations, build a team, and validate your India market thesis before committing to a full subsidiary. If the market doesn't work out, wind down is straightforward — no entity dissolution, no complex legal procedures required.
KDP drafts employment agreements in accordance with Indian labour laws — including notice periods, non-compete clauses, confidentiality, termination terms, and all mandatory provisions under applicable State Shops & Establishments Acts.
Unlike tech-first EOR platforms, KDP integrates FEMA compliance, income tax advisory, and transfer pricing analysis directly into your EOR service — ensuring your India hiring structure is optimised across all regulatory dimensions simultaneously.
From the moment you decide to hire your first Indian employee until they retire or move on, KDP manages all employment-related obligations, administrative tasks, and compliance filings on your behalf.
Complete onboarding management from initial offer to first day — employees are hired and ready within 48 hours of finalising terms.
Accurate, on-time monthly payroll processed in Indian Rupees with full statutory compliance and complete audit trails.
Indian employment law is governed by a complex web of central and state laws. KDP ensures full compliance across all applicable laws, protecting you from penalties and litigation.
All employment contracts are drafted by KDP's legal team to be fully compliant with Indian law, while also addressing your business needs including IP transfer, confidentiality, and non-solicitation.
Competitive employee benefits are critical to attracting and retaining top Indian talent. KDP administers all statutory and supplementary benefits.
Incorrect exit procedures can lead to litigation. KDP manages the entire exit process — from resignation acceptance to final settlement — ensuring legally flawless offboarding.
KDP's unique dual expertise in EOR and FEMA advisory means your hiring structure is optimised across both employment and foreign exchange compliance — a combination no pure-play EOR platform can offer.
KDP specialises in providing foreign accounting, bookkeeping, and financial services firms with qualified finance professionals based in India — under full EOR compliance, without any setup burden on the client firm.
KDP's Employer of Record service is ideally suited for these company types. Not sure if EOR is right for you? KDP advises every client on the optimal India entry structure before engagement.
Global businesses that want to access India's talent pool without the complexity, cost, and time of entity setup. Hire your first India-based employee in 48 hours with full compliance.
Early-stage companies validating their India market thesis before committing to a full subsidiary. Use EOR to build a team, test operations, and then transition to your own entity when ready.
Foreign accounting, bookkeeping, and financial services firms building offshore India teams of CA-qualified professionals without setting up an India office or navigating Indian employment law independently.
Software companies, IT services firms, and SaaS businesses hiring India-based engineers, developers, or QA professionals who need proper employment contracts and statutory benefits without entity setup.
Businesses currently engaging Indian professionals as independent contractors who need to transition to compliant employment before facing misclassification audits, back-payment orders, or PF/ESI penalties.
Businesses that have decided to incorporate an Indian subsidiary but need to start hiring immediately — EOR bridges the 3–6 month incorporation gap, with KDP managing the seamless transfer of employees once the entity is ready.
EOR is ideal for 1–50 employees or while testing the Indian market. When headcount exceeds 30–50 employees, or when you need to raise FDI, enter government contracts, or establish full brand identity as an Indian employer, KDP recommends transitioning to your own Indian subsidiary. KDP handles both — the EOR today and the entity setup tomorrow.
KDP is not just another EOR platform. We are a Chartered Accountancy firm established in 1955, bringing institutional expertise across employment law, taxation, FEMA, and corporate compliance — all under one roof.
Unlike pure-play EOR platforms, KDP's Employer of Record service is backed by 70 years of Chartered Accountancy expertise. Your employment compliance and tax strategy are handled by qualified CAs, not automated algorithms — ensuring accuracy, accountability, and personalised advisory at every step.
KDP is the only EOR provider in India that bundles FEMA compliance, transfer pricing analysis, and income tax advisory into the EOR service itself — ensuring your India hiring structure is watertight across all regulatory dimensions, not just payroll and PF.
As a CA firm, we specialise in EOR arrangements for foreign accounting and finance firms — giving us unique insight into the qualifications, tools, and expectations your India-based finance team needs to deliver from day one. We understand your business because we are in the same profession.
When you're ready to set up your Indian subsidiary, KDP handles both the EOR operations today and the subsidiary's formation tomorrow, as well as the staff transfer process from day one. No new vendors, no disruption, seamless continuity across the entire India journey.
Reach out to our experts today for a personalised consultation. We'll guide you from EOR structure setup and employment contract drafting to full payroll compliance and FEMA advisory.
Understanding where EOR sits relative to other India hiring models helps determine the right approach for your business stage and objectives.
| Parameter | EOR (via KDP) | PEO / Co-Employment | Own Indian Entity |
|---|---|---|---|
| Entity Setup Required | No | Varies | Yes (3–6 months) |
| Time to First Hire | 48–72 hours | 1–4 weeks | 3–6 months |
| PE Risk | Eliminated | Moderate | Managed |
| Legal Employer | EOR (KDP) | Shared | Your company |
| Payroll & Statutory Compliance | Fully managed by KDP | Shared responsibility | In-house or outsourced |
| FEMA Advisory Included | Yes — bundled | Rarely | Separate engagement |
| Ideal Headcount | 1–50 employees | Varies | 50+ employees |
| Wind-Down Complexity | Simple | Moderate | Complex |
Everything global companies, startups, and accounting firms ask us before getting started with EOR services in India.
An EOR is a locally registered company that legally employs Indian workers on behalf of your foreign company. KDP issues the employment contract, processes payroll, deposits PF, ESI and TDS, and handles all labour law compliance. You direct the employee's work daily. KDP invoices you monthly covering salary, statutory costs, and EOR fee — resulting in a fully compliant Indian employee with zero entity setup burden on your side.
Yes, through an EOR. You cannot legally pay an Indian worker from your foreign payroll without an Indian entity (which requires PAN, TAN, EPFO, and ESIC registrations at minimum). An EOR bypasses this by employing the worker through its own Indian entity. The employee is fully compliant with Indian law from day one — KDP's existing India registration covers all statutory obligations for your employees.
KDP can onboard employees in 48–72 hours from receipt of complete documentation. This includes issuing the employment contract, registering the employee with EPFO and ESIC, setting up payroll, and activating benefits. This compares to 3–6 months required to incorporate your own Indian entity. The 48-hour timeline assumes the employee's KYC documents (PAN, Aadhaar, bank account) are available and verified.
Indian employees are entitled to: Provident Fund (12% employer contribution), ESI if salary ≤ ₹21,000/month (3.25% employer), Gratuity after 5 years of service, Statutory Bonus (8.33–20% of annual salary), Maternity leave (26 weeks paid), earned leave, casual leave and sick leave as per state laws, and Professional Tax deduction. KDP handles all of these on your behalf, itemised clearly on your monthly invoice.
An EOR is the sole legal employer — it bears full legal liability under Indian employment law with no co-employment. A PEO (Professional Employer Organisation) operates in a co-employment model where both the PEO and the client share employer responsibilities. In India, the EOR model is preferred for foreign companies because it provides a cleaner liability shield and eliminates the PE risk that can arise from co-employment structures.
KDP manages the entire exit process compliantly: serving or accepting notice per the employment contract (typically 30–90 days), computing full and final settlement (earned leave encashment, gratuity if applicable, pro-rated bonus), processing the final salary, issuing the experience letter, relieving letter, and Form 16, and initiating PF transfer or withdrawal. For involuntary terminations, KDP advises on retrenchment compensation requirements to avoid wrongful termination claims.
Yes — this is KDP's most significant differentiator from other EOR providers. As a Chartered Accountancy firm specialising in FEMA, we bundle FEMA advisory directly into the EOR service. This covers PE risk analysis under the relevant DTAA, transfer pricing analysis on the service fee your company pays, FEMA compliance for any ESOPs or stock options the employee holds in the foreign parent, and Form 15CA/15CB for any cross-border payments. No other EOR provider in India offers this integrated coverage.
EOR is ideal for 1–50 employees or while testing the Indian market. Consider transitioning to your own Indian subsidiary when: you have a long-term commitment to India operations; headcount exceeds 30–50 employees and the EOR cost premium outweighs entity setup costs; you need to raise FDI or enter government contracts; or you want full brand identity as an Indian employer. KDP facilitates this transition seamlessly — incorporating your subsidiary and transferring employees across without any disruption.
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