Employer of Record (EOR) Explained for US Startups Hiring in India

If you're planning to hire your first employee in India, you've probably come across the term "Employer of Record" or EOR.

An EOR lets a company hire employees in India without setting up its own legal entity.

Typically, the EOR handles:
• Employment contracts
• Payroll
• Statutory compliance
• Tax deductions
• Benefits administration

Meanwhile, your employee works day to day with your team.

This can be a practical option for startups hiring one or two people before deciding whether to establish an Indian entity.

Has your startup used an EOR before? What was your experience?

Posted Aug 13, 2026, 4:44 PM UTC

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