The Ultimate Guide to EOR Service: Best Model to Start a Business Activity in India

India, a land of rich cultural and lifestyle diversity, has marked its presence as a growing economic superpower. About 20 years ago, India transitioned from a socialist state to a liberal marketplace. Today, India stands as the 6th biggest economy globally with a GDP of over $2.6 trillion.

India has a vast talent pool. A recent report of an assessment of 65,000 graduates states that 40% of India’s youth is job-ready. India offers extraordinary and digitally skilled talent at effectively affordable labor costs.

Expanding Business to India

India leads an attractive business destination for global brands owing to its optimistic spending behavior, business-friendly policies, and rich talent pool that can be hired at affordable resource costs. When a business aims at expanding in India, it focuses on establishing an overseas territory and growing its strength to service clients.

Overseas businesses usually promote remote teams and virtual working environments. This is to facilitate their need for infrastructure as no bar. Hiring talent is one part but retaining that resource remains a challenge.

Also, for any company from across the globe willing to set up an operation in India, it is essential to research and navigate local labor laws to steer clear of employment risks. Keeping track of these changes requires you to incorporate finance, HR, and payroll specialists into your team.

Wouldn’t it be easier if you could get away from this nightmare of adhering to complex Indian statutory tax and labor law compliances? Hiring employees in a new country is lengthy, complicated, and expensive. You have to establish a local entity or a subsidiary, and deal with currency conversions and overseas banking. These tasks are tedious and take time away from productive work.

To avoid this hassle, PEO (Professional Employment Organization) and EOR (Employer of Record) concepts were introduced in the early 1970s. For companies operating in a foreign land, PEO became a useful way of outsourcing particular HR functions and reducing costs. Whereas, for businesses looking at hiring talent in other countries without forming a legal entity, EOR became the right fit.

To read more check out our blog.

EOR PEO peo companies peo providers