What is EOR Service Providers Approach to Compliance in India? Find out with Employnova

Q: What’s the onboarding timeline, and what’s required from new hires?

A: Onboarding typically takes 5–10 business days. Employees must submit ID documents, tax forms, and signed contracts.

Q: How are statutory contributions and taxes managed?

A: The EOR calculates and remits taxes and social contributions based on local laws. They also issue payslips and tax certificates.

Q: What’s the payroll workflow—who does what, and when?

A: Employers submit payroll inputs (bonuses, leave, etc.) by a cutoff date. The EOR processes payroll, handles filings, and disburses salaries.

Q: How are terminations handled, and is local legal guidance provided?

A: Terminations follow local labor laws. EORs often provide legal templates and may consult with in-country experts for risk mitigation.

Q: Can payroll be processed without a local bank account?

A: Yes. EORs typically use their own local entities to process payroll, eliminating the need for client-side bank accounts.

Q: Do they own their entities or use partners, and what does that mean for liability?

A: Direct ownership offers better control and accountability. Partner-based models may introduce third-party risk and slower resolution times.

PEO Services in India helps global companies hire and manage employees across India—without setting up a legal entity. Acting as your local employer, we handle onboarding, payroll, TDS, PF, ESI, and full labor law compliance. We also manage health insurance, gratuity, wellness benefits, and tax-saving perks like HRA and LTA. Our expert team and HR tech platform enable businesses to scale teams in India quickly, compliantly, and cost-effectively, while ensuring a great employee experience.

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