Employer of RecordEOR
Also known as: EOR provider
An Employer of Record (EOR) is an organisation that becomes the legal employer of a company’s workers in a country where that company has no entity of its own. The EOR runs payroll, withholds and remits taxes, administers statutory benefits, and carries the compliance obligations of an employer, while the client company continues to direct what the workers actually do day to day. In effect, employment is split: the EOR owns the legal relationship, the client owns the work.
The value of an EOR is speed and reduced risk. Incorporating a subsidiary in a new country is slow, costly, and hard to unwind; an EOR lets a company put people on the ground compliantly in weeks rather than months, and step back out just as cleanly. It is commonly used to hire a first employee in a new market, to onboard a small team while an entity is being built, or to keep a valued hire compliantly employed where the company will never justify its own entity. The trade-off is an ongoing per-employee fee and less direct control than owning the employing entity.
For companies hiring into India — including GCCs at an early stage — an EOR is a practical way to employ talent before an entity exists. India’s employment, payroll, and statutory landscape (Provident Fund, gratuity, professional tax, state-level rules) is complex, and an EOR absorbs that compliance while the company hires and tests the market. Many GCCs begin on an EOR for their first hires, then transition those employees onto their own entity once the centre is incorporated and scaling — using the EOR as a bridge rather than a permanent arrangement.
Frequently asked questions
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third party that legally employs workers on a company’s behalf in a country where the company has no entity, handling payroll, tax, benefits, and compliance while the client directs the day-to-day work.
Is an EOR the same as a PEO?
No. An EOR is the full legal employer in a country where you have no entity of your own, while a PEO co-employs staff alongside your existing legal entity and shares employer responsibilities with you.
Do you need a legal entity to use an EOR in India?
No. The point of an EOR is that it lets a company employ people in India compliantly without first incorporating its own entity, which is why it is often used for early or first hires.
When should a company use an EOR?
A company should use an EOR when it wants to hire in a country quickly without setting up an entity — for a first hire in a new market, to bridge while an entity is being incorporated, or to employ someone where a dedicated entity is not justified.
How do GCCs use an Employer of Record?
Many GCCs use an EOR to employ their first hires in India before the centre’s own entity is incorporated, then transfer those employees onto the entity once it is set up — using the EOR as a bridge into the market.