Employing in India

Access and hire global talent & deploy them anywhere in the world. Enter the India market without the requirement of opening a local entity.

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Expanding into India

The world's most populous country and fifth-largest economy, India combines a massive English-speaking talent pool with a rapidly digitising economy. It is the global hub for IT services, business process outsourcing, and increasingly, deep-tech and manufacturing.

01

Get the support you need

The legwork and red tape can be navigated more efficiently with a Professional Employer Organisation such as Bradford Jacobs, primarily through our Employer of Record framework.

02

EOR framework

Best utilised when businesses are just beginning their expansion and require more information before incorporating an entity and fully establishing themselves in the market.

03

Dedicated 24/7 support

Bradford Jacobs is dedicated to offering you round-the-clock support throughout your entire India expansion journey from day one to full market establishment.

Hiring staff in India: quick links

Everything you need to know about employing in India, from EOR services to tax laws, employment contracts, and work culture.

EOR & PEO services

Employ in India without opening a local entity. Fully compliant EOR and PEO solutions for international teams.

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Payroll services

Compliant India payroll processing with full tax and social security management for local and global teams.

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Employment contracts

Indefinite and fixed-term contracts, compliant with India employment law and adapted to local requirements.

Visas & tax laws

Work permits, India tax law guidance and local setup considerations for foreign companies entering the market.

The India economy: key facts

The world's most populous country and fifth-largest economy, India combines a massive English-speaking talent pool with a rapidly digitising economy. It is the global hub for IT services, business process outsourcing, and increasingly, deep-tech and manufacturing.
World's most populous nation (1.4+ billion) and fi
World's most populous nation (1.4+ billion) and fifth-largest economy by nominal GDP.
Domestic company CIT base rate is 30%; concessiona
Domestic company CIT base rate is 30%; concessional 22% rate available under section 115BAA (plus surcharge and 4% cess), and 15% for new manufacturing companies under 115BAB (PwC).
Goods and Services Tax (GST) has multiple slabs (5
Goods and Services Tax (GST) has multiple slabs (5%, 12%, 18%, 28%) with 18% as the general rate.
Employees' Provident Fund (EPF): 12% employee + 12
Employees' Provident Fund (EPF): 12% employee + 12% employer of basic salary; combined employer EPF-related cost approximately 13% including admin charges.

Main sectors of the India economy

India’s economy is anchored by five key sectors with significant international impact and strong investment potential.

Information technology and software services
India's IT-BPM industry generated approximately USD 254 billion in revenue in FY2023-24 according to NASSCOM, with exports accounting for roughly USD 200 billion. The sector employs over 5.4 million people across hubs in Bengaluru, Hyderabad, Pune, and the NCR.
  • NASSCOM: ~USD 254bn FY24 revenue
  • Over 5.4 million sector employees
  • Bengaluru, Hyderabad, Pune clusters
Pharmaceuticals and biotechnology
India supplies around 20% of global generic drug volumes and over 60% of the world's vaccine doses, per the Department of Pharmaceuticals and IBEF. The domestic pharmaceutical market was valued at roughly USD 50 billion in 2023, with USFDA-approved manufacturing facilities concentrated in Gujarat, Telangana, and Maharashtra.
  • ~20% of global generics volume
  • Over 60% of global vaccines
  • Largest USFDA-approved plants outside US
Automotive and engineering
India is the world's third-largest automobile market by volume, with the auto industry contributing roughly 7.1% of national GDP according to SIAM and Invest India. The sector produced over 28 million vehicles in FY2023-24 and is a major exporter of two-wheelers, passenger cars, and auto components.
  • World's third-largest auto market
  • ~7.1% of national GDP
  • 28m+ vehicles produced FY24
Financial services and fintech
India processed over 131 billion UPI transactions in 2023-24 per NPCI data, making it the world's largest real-time payments market. The fintech adoption rate is among the highest globally at 87%, per EY, with major hubs in Mumbai, Bengaluru, and Gurugram.
  • 131bn+ UPI transactions FY24
  • World's largest real-time payments market
  • 87% fintech adoption rate (EY)
Textiles and apparel
India is the world's second-largest textile producer and exporter, contributing approximately 2.3% of GDP and 13% of industrial production according to the Ministry of Textiles. Textile and apparel exports reached around USD 34 billion in FY2023-24, with clusters across Tirupur, Surat, Ludhiana, and Noida.
  • World's second-largest textile producer
  • ~USD 34bn exports FY24
  • Tirupur, Surat, Ludhiana clusters

Commercial laws in India

Understanding India’s legal and tax framework is essential for compliant operations. Here’s what every employer must know.

Contracts law in India

Probation periods typically 3-6 months (no statutory cap; set by contract/company policy). Notice periods are commonly 30-90 days per contract; state Shops & Establishments Acts vary. Annual leave accrues at roughly 1 day per 20 working days (~15 days/year) under the Factories Act; varies by state and sector.

Tax, payroll & compliance

CIT: domestic companies 22% (under 115BAA) or 30% base; new manufacturers 15%. GST: 5/12/18/28% multi-rate. EPF 12% employer + 12% employee (basic salary). ESI (Employees' State Insurance) 3.25% employer + 0.75% employee for wages up to INR 21,000/month. Gratuity payable at 15 days' wages per year of service after 5 years.

India commerce statistics

Key statistics and commercial data for businesses planning to operate in India.

Currency & VAT

Indian Rupee (INR)

Workforce potential

Labour force of approximately 600 million. Largest English-speaking workforce outside the US; over 1.5 million STEM graduates annually. Strong concentration in IT services hubs (Bengaluru, Hyderabad, Pune, Chennai, NCR).

Logistics & market access

Major ports include JNPT (Mumbai), Mundra, and Chennai. Expanding national highway and dedicated freight corridor network. Logistics costs historically higher than peers but improving under PM Gati Shakti and National Logistics Policy.

Business expansion readiness

Medium-complexity. State-level variation in labour laws, multiple registrations (EPF, ESI, professional tax, Shops & Establishments), and ongoing labour code consolidation. EOR widely used by foreign firms to avoid entity setup and navigate state-by-state compliance.

Frequently Asked Questions About EOR in India

Answers to common questions about using an Employer of Record to expand into new markets, based on our experience with businesses across 75 countries.

An Employer of Record (EOR) is a third-party organisation that legally employs your international workforce on your behalf. The EOR handles payroll, tax compliance, employment contracts, and benefits administration in the local country. Your company retains full control over day-to-day work direction and management which means the EOR absorbs the legal employer responsibility so you can expand without setting up your own entity.

Bradford Jacobs partners with vetted, in-country legal and compliance experts in each jurisdiction. Every employment contract is drafted to local labour law standards, payroll is processed according to local tax schedules, and any regulatory changes are monitored continuously. We do not cut corners on compliance because it is the foundation of our service.

Your company retains the right to direct the employee’s work, assign tasks, and manage performance. The EOR handles statutory obligations: registering the employee with local authorities, withholding and remitting income tax and social security contributions, providing mandated benefits, and managing termination or severance in compliance with local labour law.

Typical EOR setup takes 1 to 3 business days once the engagement letter is signed and worker details are provided. In many countries, the first employee can be onboarded within the same week. Complex jurisdictions may take slightly longer for local authority registration, but the EOR team manages that process end-to-end.

EOR is suitable for both short-term and long-term employment. Many businesses use EOR as a permanent solution in countries where entity setup is not justified. Others start with EOR to validate a market and transition to their own entity later. There is no standard time limit on EOR arrangements in most countries.

The EOR provider monitors local regulatory changes and updates employment contracts, payroll calculations, and compliance procedures accordingly. Your company is notified of material changes that affect cost or obligations, but the compliance burden sits with the EOR. This is one of the key advantages of the model so you stay insulated from local regulatory churn.

Mandatory benefits (social security, health insurance, pension contributions) are handled by the EOR according to local law. Discretionary benefits such as private health cover, additional leave, or bonus structures can be arranged on top, with the cost either included in the EOR fee or billed separately. Your company decides the package; the EOR delivers it locally.

Yes. The EOR arrangement includes a structured offboarding process that transfers employment contracts and payroll history to your local entity when you are ready. This is a well-established transition, and Bradford Jacobs can support entity formation services to make the handover seamless. Most clients use EOR for 12-24 months before transitioning.

Ready to employ in India?

Download our complete India EOR Guide or contact Bradford Jacobs to start your expansion today, without the complexity.

Tax and labour data sourced from PwC, ILO, World Bank. Last verified May 2026.