How to Use an Employer of Record in the India for Remote Teams

India has become one of the top destinations for global businesses hiring remote talent. With a highly skilled workforce, cost-effective hiring, and a strong IT and outsourcing industry, companies worldwide are leveraging Indian talent for remote teams.

However, hiring in India comes with legal, tax, and compliance challenges, which can be difficult to navigate for businesses without a local presence. This is where an Employer of Record (EOR) like Cadana simplifies the process, enabling companies to hire employees in India legally, manage payroll, and ensure compliance, all without setting up a local entity.

Here’s a step-by-step guide on how to use an EOR in India to build and manage a remote team seamlessly.

Step 1: Understand the Role of an Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of a company, handling:

Employment contracts compliant with Indian labor laws.
Payroll processing & tax deductions (Income Tax, Provident Fund, etc.).
Social security & benefits management (EPF, ESI, Gratuity, etc.).
HR and compliance support.

With Cadana’s EOR services, companies can hire and manage remote employees in India without setting up a subsidiary, ensuring compliance with all employment laws. This streamlined process allows businesses to focus on strategic growth while outsourcing administrative tasks.

Step 2: Identify the Right Roles for Remote Hiring in India

India has a large, diverse talent pool, making it an ideal hiring destination for tech companies, startups, and global enterprises.

Common Remote Roles in India:

Software Developers & IT Professionals – Skilled in web development, cloud computing, cybersecurity, and AI.
Data Analysts & Engineers – Expertise in big data, machine learning, and business intelligence.
Customer Support Representatives – Highly experienced in BPO and virtual customer service roles.
Finance & Accounting Specialists – Strong skills in bookkeeping, payroll management, and auditing.
Digital Marketers & Content Writers – Proficient in SEO, social media, and content strategy.

Using an EOR like Cadana, businesses can hire professionals in these fields quickly and efficiently while ensuring legal compliance. This approach simplifies the hiring process, allowing companies to tap into India’s skilled workforce without administrative hurdles.

Step 3: Onboard Remote Employees Through an EOR

Once the right talent is selected, the next step is onboarding. An EOR handles the entire process, ensuring all employment contracts, tax registrations, and benefits align with Indian labor laws.

EOR Onboarding Process:

Legally compliant employment contracts – Ensures adherence to India’s labor laws.
Employee tax registration – Includes Income Tax (TDS), Employees’ Provident Fund (EPF), and Employees’ State Insurance (ESI).
Payroll setup – Secure salary disbursement in INR through bank transfers.
Compliance & Documentation – Right-to-work verification, tax forms, and HR policies.

With Cadana’s EOR services, onboarding becomes hassle-free, ensuring compliance while reducing administrative work. This streamlined process allows businesses to focus on integrating new hires into their teams efficiently.

Step 4: Manage Payroll & Compliance for Remote Teams in India

Managing payroll in India requires handling income tax deductions, social security contributions, and labor law compliance.

Key Payroll & Tax Responsibilities for Employers in India:

Income Tax (TDS - Tax Deducted at Source): Progressive tax rates from 5% to 30% depending on income. Please verify the latest tax brackets and rates from the Income Tax Department of India.
Employees’ Provident Fund (EPF): Employer contributes 12% of salary, and employee contributes 12%. Confirm current contribution rates and any recent changes.
Employees’ State Insurance (ESI): Employer contributes 3.25%, and employee contributes 0.75% for healthcare. Check for any updates in ESI contribution rates.
Gratuity: Mandatory for employees with 5+ years of service, calculated at 15 days’ pay per year worked. Ensure compliance with the latest gratuity regulations.

How an EOR Simplifies Payroll in India:

Manages salary disbursement & payslips.
Handles tax deductions & government filings.
Ensures compliance with Indian labor laws.

With Cadana’s EOR, businesses can pay remote employees accurately and on time, while ensuring compliance with India’s tax regulations. This reduces the risk of non-compliance and associated penalties.

Step 5: Provide Employee Benefits & Retention Support

Offering competitive benefits helps retain top talent in India. An EOR ensures employees receive statutory and additional benefits, enhancing job satisfaction.

Mandatory Employee Benefits in India:

Paid Annual Leave – Minimum 12 to 15 days of paid leave per year. Confirm the exact entitlement based on the latest labor laws.
Maternity Leave – 26 weeks of paid maternity leave for eligible employees. Ensure compliance with the latest maternity leave regulations.
Sick Leave – Typically up to 12 days of paid sick leave annually. Verify the specific conditions for sick leave entitlement.
Provident Fund (EPF) & Gratuity – Long-term financial security for employees.

Additional Benefits Employers Can Offer:

Health Insurance & Wellness Programs – Expands coverage beyond ESI.
Flexible Work Hours – Supports work-life balance.
Learning & Development Programs – Encourages career growth.
Performance Bonuses & Incentives – Increases employee engagement.

With Cadana’s EOR solution, companies can manage employee benefits efficiently while ensuring compliance with Indian labor laws. This helps maintain a positive work environment and supports long-term retention strategies.

Step 6: Scale & Grow Your Remote Team in India

As businesses grow, scaling a remote team in India is seamless with an EOR. Instead of setting up a local entity, companies can continue hiring employees through the EOR, allowing flexibility and cost efficiency.

How an EOR Supports Business Growth:

Rapid team expansion – Scale without legal barriers.
Seamless HR & Payroll Management – Avoid HR complexities and compliance risks.
Access to a Wider Talent Pool – Hire professionals across different cities in India.

With Cadana’s EOR services, businesses can scale their Indian workforce effortlessly while maintaining compliance. This streamlined approach supports strategic growth and reduces operational costs.

Why Use an EOR in India for Remote Hiring?

📌 No need for entity setup – Hire and pay employees legally without forming a local subsidiary.

📌 Payroll & compliance managed for you – The EOR handles tax filings, payroll processing, and employee benefits.

📌 Access to world-class talent – Tap into India’s skilled workforce for IT, finance, customer support, and digital roles.

📌 Faster hiring process – Employees can be onboarded in days, enabling businesses to scale efficiently.

📌 Reduced administrative burden – Focus on growth while the EOR manages HR, payroll, and compliance.

How Cadana Can Help You Build a Remote Team in India

India offers immense opportunities for remote hiring, but navigating payroll, HR compliance, and employment regulations can be challenging.

Cadana’s EOR services provide a seamless solution for companies looking to hire, manage, and scale remote teams in India without setting up a legal entity.

With Cadana’s EOR, Businesses Can:

Hire remote employees in India quickly and legally.
Manage payroll, taxes, and statutory benefits effortlessly.
Ensure full compliance with Indian labor laws.
Scale teams efficiently with reduced administrative costs.

Ready to grow your remote team in India? Partner with Cadana today and start hiring with confidence!