What Foreign Companies Need to Know About Hiring in India Compliantly

With companies across the world looking to tap into emerging new markets, India has become one of the leading outsourcing destinations to hire a professional yet affordable workforce. But hiring in India is not without its challenges – it requires a comprehensive knowledge of local employment laws, payroll taxation, compliance structures, and an understanding of the legal and regulatory environment.

If you're a foreign company planning to hire in India, either remotely or by setting up a local office, then Orbtrak’s guide will walk you through the process in detail.

Can Foreign Companies Hire Employees in India?

Yes, foreign companies can legally hire employees in India. However, the method of hiring matters a lot.

You can:

• Establish a legal presence in India (subsidiary, branch, or liaison office)
• Partner with a local staffing agency
• Use an Employer of Record (EOR) like Orbtrak to hire talent without setting up a legal entity

Each method has its pros and cons—but for fast, compliant, and low-risk hiring, EOR is often the preferred choice.

Legal Structures Available for Hiring in India

Here are the common options for foreign employers:

1. Setting Up an Entity
   This means registering your business in India, which provides you with full control, but also imposes legal, tax, and operational obligations. You will have to handle everything from payroll to H.R. compliance.
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2. Using an Employer of Record (EOR)
   An EOR like Orbtrak acts as the legal employer on your behalf. We take care of:
   
   • Employment Contracts
   • Payroll Processing
   • Tax Deductions
   • Compliance with Indian employment laws
     
     This model lets you focus on operations while we handle the legal side of employment

Read More: https://www.orbtrak.com/insights/what-foreign-companies-need-to-know-about-hiring-in-india-compliantly